The company reported strong first-quarter earnings and provided positive commentary for the long-term opportunity in physical AI.
- For the first quarter, BlackBerry reported total revenue of $152.9 million and adjusted earnings per share of $0.04.
- For the full year, it expects total revenue in the $594 million to $621 million range and adjusted EPS between $0.16 and $0.20.
- The company also touted its strong double-digit percentage growth in its QNX, Secured Communications, and Licensing unit.
Shares of BlackBerry (BB) traded higher on Thursday morning after the company reported strong first-quarter results and provided an upbeat forecast.
At the time of writing, BB stock was up more than 10% on the NYSE and was the top trending ticker on Stocktwits.
First Positive Operating Cash Flow In Nine Years
The company reported first-quarter (Q1) operating cash flow of $4.6 million, which it claims is its “first cash-positive fiscal quarter in nine years,” excluding the non-core patent sale in 2024, benefitting from strong demand for its vehicle software and encrypted communications solutions.
“Demand across our markets remains healthy. Customer engagement is strong, and our backlog continues to expand,” the company said during the earnings call with analysts. “Governments around the world continue to prioritize digital sovereignty, cybersecurity modernization, and secure communications infrastructure, creating favorable demand conditions for our solutions.”
For Q1, BlackBerry reported a 26% surge in total revenue to $152.9 million, ahead of the $137.9 million estimate polled by Fiscal AI. It reported adjusted earnings per share (EPS) of $0.04, one cent ahead of the $0.03 estimate.
For the full year, it expects total revenue in the $594 million to $621 million range and adjusted EPS between $0.16 and $0.20, with the midpoint of both metrics ahead of the consensus estimates.
BB Stock: Exciting Physical AI Opportunities Ahead
The company also touted its strong double-digit percentage growth in its QNX, Secured Communications, and Licensing units, saying that the underlying foundation of its businesses is “stronger than it has been in years.” It also provided strong commentary on what lies ahead for the company regarding physical AI.
“Where particularly excited about the long-term opportunity in physical AI. As intelligent machines become increasingly autonomous and operate around people, the requirements for safety, security, reliability, and real-time determinism become even more important,” the company said on a call.
“In many ways, automotive has been a proving ground for the demands of physical AI. Modern vehicles are essentially robots on wheels, and QNX has established itself as a trusted platform supporting many of the industry's most advanced autonomous and safety-critical systems.”
What Do Retail Traders Think About BB?
On Stocktwits, retail sentiment toward BB stock turned 'bullish' from ‘bearish’ over the last 24 hours.
One user on the platform expects physical AI to generate significant cash for the company.
View this Stocktwits post
BB stock has roughly doubled in value so far this year and over the past 12 months, outperforming the S&P 500.
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