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BlackBerry
(TSX:BB)
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Rating:69Neutral
Price Target:
C$12.50
▲(15.85% Upside)
Action:Downgraded
Date:09/28/26
The score is driven primarily by improving financial performance (return to profitability, strong margins, and materially better free cash flow) and a notably upbeat earnings call with raised guidance and strong QNX momentum. These positives are tempered by expensive valuation (high P/E, no dividend yield provided) and only mixed technicals, with the stock still below key intermediate moving averages.
Positive Factors
QNX growth and design-win pipeline
QNX combines record growth with a substantial backlog and increasing royalty conversion, supporting multi-period revenue visibility. Its safety-critical positioning, larger design wins, and higher software content per vehicle can strengthen recurring embedded economics as customer programs reach production.
Negative Factors
Secure Communications outlook risk
Secure Communications remains exposed to uncertainty in larger government opportunities, which represent the portion of revenue outside its ARR base. Longer sales cycles can delay otherwise viable contracts, creating an ongoing risk to growth consistency and near-term segment profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
QNX growth and design-win pipeline
QNX combines record growth with a substantial backlog and increasing royalty conversion, supporting multi-period revenue visibility. Its safety-critical positioning, larger design wins, and higher software content per vehicle can strengthen recurring embedded economics as customer programs reach production.
Read all positive factors
BlackBerry (BB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$7.46B
Dividend YieldN/A
Average Volume (3M)3.46M
Price to Earnings (P/E)61.6
Beta (1Y)1.07
Revenue Growth13.76%
EPS GrowthN/A
CountryCA
Employees1,749
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.14
Shares Outstanding587,032,300
10 Day Avg. Volume4,201,107
30 Day Avg. Volume3,460,411
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)2.69
Price to Sales (P/S)3.60
P/FCF Ratio42.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$14.97Price Target Upside38.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.29
Revenue Forecast (FY)C$881.02M
BlackBerry Business Overview & Revenue Model
Company Description
BlackBerry Limited, founded in 1984 and headquartered in Waterloo, Canada, specializes in delivering cutting-edge security software and services to businesses and governmental entities worldwide. The company’s activities are structured into three ...
How the Company Makes Money
BlackBerry makes money primarily through software and services revenue across its Cybersecurity and IoT businesses.
1) Cybersecurity revenue (software subscriptions, licenses, and services)
- Subscription and recurring software: BlackBerry sells ...
BlackBerry Earnings Call Summary
Earnings Call Date:Sep 24, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
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.Positive Updates
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.
Negative Updates
Secure Communications Full-Year Outlook Reduced
BlackBerry revised full-year Secure Communications revenue guidance to $260 million to $270 million and adjusted EBITDA guidance to $50 million to $58 million. Management cited a dynamic U.S. backdrop, recent geopolitical developments, and trade tensions between Canada and the United States, while stating that it had not yet seen anything material arising from the issue.
Read all updates
Q2-2027 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
For the full year, QNX revenue outlook is 315 to 325 million and adjusted EBITDA is between 95 and 105 million; for Q3, QNX revenue is expected to be between 82 and $88 million, representing 24 percent year over year growth at the midpoint, with adjusted EBITDA of between $27 and $32 million. Secure Communications full year revenue is forecast at $260 to $270 million and adjusted EBITDA at between 50 million and 58 million, with Q3 revenue between $55 and $60 million and adjusted EBITDA between 6 million and 10 million. Licensing full year revenue is expected to be approximately 41 million and adjusted EBITDA approximately 36 million; for Q3 and Q4, licensing is expected to return to a more typical quarterly revenue level of approximately $6 million with adjusted EBITDA of approximately 5 million. Total company full year revenue guidance is $616 to $636 million, representing 14 percent year over year growth, and adjusted EBITDA guidance is 141 to 158 million, representing 43 percent year over year growth; Q3 revenue is expected to be between $143 million and $154 million and adjusted EBITDA between $28 and $37 million, with adjusted basic earnings per share of between $0.04 and $0.05 for the quarter and between $0.19 and $0.22 for the full year. The company expects another quarter of positive operating cash flow of between 20 million and $30 million and full year operating cash flow of approximately $115 million.BlackBerry Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 614.09M | 558.13M | 534.90M | 759.10M | 526.30M | 718.00M |
| Gross Profit | 468.87M | 413.49M | 394.90M | 490.70M | 366.60M | 467.00M |
| EBITDA | 110.39M | 84.99M | 59.20M | 94.40M | -90.70M | -38.00M |
| Net Income | 80.53M | 54.07M | -79.00M | -130.20M | -734.40M | 12.00M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.24B | 1.30B | 1.40B | 1.68B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 376.74M | 359.58M | 337.80M | 237.00M | 426.00M | 712.00M |
| Total Debt | 220.55M | 224.80M | 239.00M | 252.00M | 419.00M | 601.00M |
| Total Liabilities | 470.45M | 498.76M | 572.96M | 619.00M | 822.00M | 1.01B |
| Stockholders Equity | 790.00M | 745.34M | 716.47M | 776.00M | 857.00M | 1.56B |
Cash Flow | ||||||
| Free Cash Flow | 91.19M | 47.26M | 6.40M | -23.86M | -304.00M | -67.00M |
| Operating Cash Flow | 98.80M | 51.13M | 16.50M | -3.00M | -263.00M | -28.00M |
| Investing Cash Flow | -70.62M | 15.86M | 60.70M | 46.00M | 176.00M | 207.00M |
| Financing Cash Flow | -38.48M | -59.16M | 3.10M | -165.00M | 6.00M | 10.00M |
BlackBerry Technical Analysis
Positive
10.79
Price Trends
11.76
Positive
12.53
Positive
9.05
Positive
Market Momentum
0.37
Negative
55.26
Neutral
45.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BB, the sentiment is Positive. The current price of 10.79 is below the 20-day moving average (MA) of 12.12, below the 50-day MA of 11.76, and above the 200-day MA of 9.05, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 45.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BB.
BlackBerry Risk Analysis
BlackBerry disclosed 30 risk factors in its most recent earnings report. BlackBerry reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BlackBerry Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$7.46B | 61.56 | 10.62% | ― | 13.76% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | C$438.69M | -16.22 | -19.77% | ― | 9.70% | 11.90% | |
54 Neutral | C$231.59M | -2.02 | -34.04% | ― | -15.02% | -1478.50% | |
51 Neutral | C$25.84M | -3.57 | 112.09% | ― | -32.68% | 70.60% | |
47 Neutral | C$14.03M | -15.30 | -23.17% | ― | -5.63% | -0.79% |
* Technology Sector Average
TSE:BB
BlackBerry
12.09
5.80
92.21%
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0.20
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TSE:PLUR
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0.22
0.02
13.16%
TSE:CVO
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4.76
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-41.52%
BlackBerry Corporate Events
Business Operations and StrategyFinancial Disclosures
BlackBerry Q2 Results Highlight QNX Record Revenue and Raised Outlook
Positive
Sep 25, 2026
BlackBerry reported a strong second quarter for fiscal 2027, with revenue rising 26% year-over-year to $163.3 million and adjusted EBITDA up 81%, marking a second consecutive quarter meeting its Rule of 40 metric. The company posted its sixth stra...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.