BlackBerry’s QNX Bet Is Starting To Pay Off, CEO Says The Company Is 'No Longer In Transition'

• BlackBerry touted the growth of its QNX platform, which delivered a record quarterly revenue of about $79 million, soaring 20% year-on-year.
• The adjusted gross margins in the QNX segment rose by one percentage point to 84%, higher than BlackBerry’s overall adjusted gross margins of about 78%.
• The company also stated that the QNX royalty backlog increased to nearly $950 million during the quarter.

BlackBerry (BB) shares soared more than 9% in Thursday’s pre-market trade after the company’s fourth-quarter (Q4) results surpassed Wall Street expectations.

Buoyed by the earnings beat, CEO John J. Giamatteo stated that BlackBerry is “no longer a company in transition.” He added that the company has strengthened its fundamentals while continuing to invest in its platform, products, and people.

BlackBerry reported earnings per share of $0.06 in Q4 on revenue of $156 million, while Wall Street analysts expected an EPS of $0.04 on revenue of $145 million, according to Fiscal.ai data.

Earnings Beat Powered By QNX

The company touted the growth of its QNX platform, which delivered a record quarterly revenue of about $79 million, soaring 20% year-on-year.

The adjusted gross margins in the QNX segment rose by one percentage point to 84%, higher than BlackBerry’s overall adjusted gross margins of about 78%.

The company also stated that the QNX royalty backlog increased to nearly $950 million during the quarter.

BlackBerry’s QNX is a real-time operating system that powers more than 275 million vehicles globally and is also embedded in millions of Internet of Things (IoT) devices.

“QNX is now a Rule of 40 business, and a clear leader in automotive, embedded in more than 275 million vehicles worldwide, with growing momentum in robotics, physical AI, and other adjacent markets. Secure Communications has returned to growth, driven by a real and accelerating digital sovereignty tailwind,” Giamatteo said.

BlackBerry stated that Mercedes-Benz is among automakers trialing an early access version of QNX. The company also added that QNX technology will be integrated in BMW Group's next-generation “Neue Klasse” software-defined vehicle architecture.

Q1, FY27 Guidance Beat Forecasts

Adding to the upbeat sentiment around the company, BlackBerry’s first-quarter (Q1) and fiscal year 2027 forecasts beat Wall Street expectations.

BlackBerry forecast Q1 revenue in the $132 million and $140 million range, with EPS in the $0.02 to $0.03 range. This is better than the consensus estimate of revenue of $130 million.

For FY27, BlackBerry guided for revenue between $584 million and $611 million, compared to an expected $577 million.

“We are a growth company with a proven track record of execution, and we are well positioned for the path ahead,” Giamatteo added.

How Did Retail Traders React?

Retail sentiment on Stocktwits around BlackBerry trended in the ‘bullish’ territory with message volumes at ‘high’ levels.

One bullish user stated that BlackBerry is now a cash cow.

Another user stated that it feels like the worst days may be behind.

BB stock is down 7% year-to-date, but up 23% over the past 12 months. The First Trust NASDAQ Cybersecurity ETF (CIBR) is up 14% over the past 12 months.

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