EarningsQ2 2027 Earnings Report
MX:BBN Q2 2027 EPS Results
Actual EPS$1.27
Consensus EPS$0.76
Beat/MissBeat by +$0.51
One Year Ago EPS$0.72
MX:BBN Q2 2027 Revenue Results
Actual Revenue$2.95B
Expected Revenue$2.57B
Beat/MissBeat by +$373.64M
YoY Revenue Growth+28.75%
Earnings Announcement Details
QuarterQ2 2027
Date09/24/2026
TimeAfter Close
Conference CallThursday, September 24, 2026
MX:BBN Upcoming Earnings
BlackBerry's next earnings date is estimated for December 17, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:BBN Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record QNX performance, a major Alloy Core design win, strong profitability and cash generation, and higher full-year company, QNX, licensing, EPS, and operating cash flow guidance. The main negative factors were a more cautious Secure Communications outlook due to geopolitical uncertainty and government deal timing, lower Secure Communications margins, licensing volatility, and the long lead times associated with QNX programs. Highlights significantly outweighed the lowlights.Company Guidance
Strong Company-Wide Revenue and Profitability Growth
Second-quarter revenue was $163 million, up 26 percent year over year and above the high end of guidance. Adjusted EBITDA was $47 million, representing 29 percent of revenue and an increase of 81 percent year over year. Total company adjusted gross margin expanded 3 percentage points year over year to 78 percent. The company described the quarter as its second consecutive Rule of 40 quarter, while Tim Foote also characterized it as a Rule of 50 quarter based on revenue growth and adjusted EBITDA margin.
Continued GAAP Profitability and Earnings Outperformance
BlackBerry delivered its sixth consecutive quarter of positive GAAP net income. GAAP net income was $34 million, the strongest quarterly level since Q4 of fiscal 2022. Adjusted net income was $43 million, and adjusted EPS was $0.07, above the company's expectations.
Strong Cash Flow and Balance Sheet
Operating cash flow was $29 million in Q2, significantly above the company's guidance range, while free cash flow was $28 million. First-half operating cash flow was $34 million compared with a $14 million usage in the prior-year period, a year-over-year improvement of $48 million. First-half free cash flow was $30 million. BlackBerry ended the quarter with approximately $447 million of cash and investments and approximately $247 million of net cash.
Record QNX Revenue and Growth
QNX delivered record quarterly revenue of $80 million, up 27 percent year over year and above the high end of guidance. Performance was broad-based across development licenses, professional services, and royalties. QNX adjusted gross margin expanded 4 percentage points year over year to 87 percent, matching the highest reported quarterly level in the business's history. Adjusted EBITDA increased 41 percent to $29 million, representing a 36 percent margin.
Record QNX Design-Win Activity and Royalty Conversion
Q2 was QNX's strongest quarter ever for Design Win Dollars, and the value of design wins secured in the first half exceeded the previous record for any full fiscal year. The company said its reported $950 million backlog is beginning to convert as newer, larger design wins move into production, providing a line of sight for revenue. Some programs won over the past several years are entering production and beginning to translate into royalty revenue.
Expanded QNX Automotive Addressable Market
Approximately 90 million vehicles are produced globally each year. About one-third currently have high-performance centralized compute architectures where QNX is most relevant, and industry forecasts indicate that this segment could expand to roughly three-quarters of the market over the next five years. The company said this could more than double QNX's addressable market, with additional opportunity from greater QNX software content per vehicle and multiple QNX instances in a single vehicle.
SDP 8 Adoption and Improved Commercial Commitments
QNX is seeing increasing adoption of SDP 8, its next-generation platform for higher-performance compute architectures, with multiple major global OEMs and Tier 1 suppliers evaluating and developing on the platform. For new commercial arrangements, QNX is increasingly securing minimum contractual volume commitments instead of non-contractual forecasts, which the company said provides greater certainty around volumes, revenue, and cash flow and offers the potential to receive cash and recognize a portion of revenue earlier.
First Alloy Core Design Win
Cortica, the commercial vehicle software joint venture between Volvo Group and Daimler Truck, selected Alloy Core as the foundational software platform for its next-generation high-performance compute architecture. Cortica plans to deploy Alloy Core across multiple software domains. The design win is estimated to generate more than $100 million in future royalties, making it the largest design win in QNX's history, and the ASP per instance is approximately 3x higher than the customer's current QNX operating system deployment.
Alloy Core Commercial Validation and Pipeline
The company said the Cortica award moved Alloy Core from a strategic opportunity to commercial validation. Alloy Core combines QNX foundational software, common automotive services, and Vector middleware in a pre-integrated, safety-certified platform. BlackBerry is engaging with multiple global OEMs and major Tier 1 suppliers, particularly in Europe and Asia, and described the pipeline as healthy across commercial and passenger vehicles.
Expansion into General Embedded Markets
General embedded markets represent approximately 20 percent of QNX revenue and are a longer-term growth opportunity. BlackBerry cited physical AI, robotics, industrial automation, medical devices, aerospace and defense, rail, and other adjacent verticals where QNX capabilities such as real-time determinism, functional safety, security, and reliability are relevant.
Physical AI and Robotics Design Wins
BlackBerry secured a new design win with Uber, which selected QNX as the software foundation for its next generation of vehicles. Momenta and Xpeng also selected QNX OS for Safety built on SDP 8 for a production-ready autonomous driving platform certified to ISO 26300. The company said more than 20 companies are engaging with it around NVIDIA-based platforms, including humanoid robot OEMs, surgical robots, autonomous mobile robots, autonomous tractors, drones, and planes.
QNX Developer and Ecosystem Programs
QNX Everywhere is available for free for noncommercial use to put the platform into the hands of more developers. BlackBerry also launched the QNX Launchpad program during the quarter to lower barriers to commercial development and help early-stage companies build on and continue using QNX as their businesses grow. The company said its partnership with NVIDIA is building a strong pipeline of opportunities.
Stable Secure Communications Performance
Secure Communications revenue was $61 million, up 2 percent year over year and within guidance. Annual recurring revenue was approximately $221 million, up 4 percent year over year, and the company said the business remained stable and profitable. First-half Secure Communications revenue grew 13 percent year over year. The quarter included renewals and expansions with customers across the U.S., Canada, Europe, Asia, and the Middle East, including U.S. federal government agencies, the Dutch police, the UK's National Grid, Rolls-Royce, Saudi National Bank, and Babcock.
Licensing Revenue and Operating Leverage
Licensing revenue was approximately $22 million, significantly above expectations, primarily due to a new licensing arrangement secured during the quarter. Adjusted EBITDA was $20 million, reflecting high incremental operating leverage and strong conversion of the additional revenue into profitability.
Raised Full-Year Company Guidance
For the second consecutive quarter, BlackBerry raised its full-year total company outlook. Revenue guidance increased by $9 million at the midpoint to $616 million to $636 million, representing 14 percent year-over-year growth. Adjusted EBITDA guidance increased by $21 million at the midpoint to $141 million to $158 million, representing 43 percent year-over-year growth. Full-year adjusted basic EPS guidance increased to $0.19 to $0.22, and full-year operating cash flow guidance increased by $15 million to approximately $115 million.
Raised QNX and Licensing Outlooks
Full-year QNX revenue guidance was raised by $17 million at the midpoint to $315 million to $325 million, with adjusted EBITDA guidance raised by $20 million at the midpoint to $95 million to $105 million. Q3 QNX revenue is expected to be $82 million to $88 million, representing 24 percent year-over-year growth at the midpoint, with adjusted EBITDA of $27 million to $32 million. Full-year licensing revenue guidance was raised by $12 million to approximately $41 million, with adjusted EBITDA guidance of approximately $36 million.
Capital Allocation Flexibility
Management said stronger cash generation and the balance sheet provide significant financial flexibility. Capital priorities are investing in QNX growth, disciplined share repurchases under the current NCIB program, and selectively evaluating value-accretive M&A, particularly opportunities that could accelerate the general embedded and physical AI opportunity. Management said the strategic and financial bar for M&A remains high.
MX:BBN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed