BlackBerry 2026 Q1 Earnings Robust Turnaround as Net Income Swings 104.6%

BlackBerry reported its fiscal 2026 Q1 earnings on June 25th, 2025. The company exceeded expectations with a reported revenue of $121.7 million, surpassing the Street estimate of $112.18 million. BlackBerry also raised its fiscal 2026 revenue guidance to a range of $508 million to $538 million, up from the previous range of $504 million to $534 million. The adjusted EPS guidance was affirmed at eight cents to 10 cents. This positive performance reflects BlackBerry's strategic execution, with both its QNX and Secure Communications divisions making significant contributions.

Revenue

BlackBerry's revenue for fiscal 2026 Q1 amounted to $121.70 million, marking a 1.4% decrease compared to $123.40 million in the same quarter of the previous year. The QNX division contributed $57.50 million, showcasing year-over-year growth. Secure Communications reported revenue of $59.50 million, while the Licensing segment generated $4.70 million. There were no reconciling items, with segment totals aligning with the overall revenue figure.

Earnings/Net Income

BlackBerry maintained stable EPS at $0.00 in 2026 Q1 compared to the same quarter in 2025. The company achieved a remarkable turnaround with net income of $1.90 million, representing a 104.6% positive swing from the net loss of $-41.40 million in 2025 Q1. Despite stable EPS, the net income turnaround reflects a positive performance.

Price Action

The stock price of BlackBerry has edged up 1.25% during the latest trading day, has jumped 13.26% during the most recent full trading week, and has surged 25.84% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing BlackBerry shares when revenues exceed expectations and holding for 30 days resulted in poor performance. This approach led to an 18.01% loss, starkly contrasting with a 44.39% gain for the benchmark, indicating notable underperformance. Additionally, the strategy faced a significant maximum drawdown of -70.28%, highlighting substantial losses during the backtested period. The Sharpe ratio of -0.09 further underscores the unfavorable risk-adjusted returns associated with this strategy. Investors should consider these insights when evaluating their approach to trading BlackBerry stocks, as the strategy's historical performance suggests caution.

CEO Commentary

John Joseph Giamatteo, CEO & Director, expressed optimism regarding BlackBerry's robust start to fiscal year 2026, highlighting that total revenue reached $121.7 million, exceeding guidance. He noted significant year-over-year growth in adjusted EBITDA of over 55% at $16.4 million and a positive EPS of $0.02. Giamatteo emphasized strategic priorities, including diversifying the QNX business beyond automotive into verticals like robotics and medical devices, as well as enhancing the QNX vehicle platform. He acknowledged market uncertainties impacting decision-making but maintained a positive outlook on BlackBerry's ability to generate cash and shareholder value moving forward.

Guidance

For the second fiscal quarter, BlackBerry anticipates revenue in the range of $115 million to $125 million and adjusted EBITDA between $8 million and $14 million. Specifically for QNX, revenue is projected to be between $55 million and $60 million, while adjusted EBITDA is expected to range from $10 million to $13 million. The full-year revenue guidance remains at $250 million to $270 million with adjusted EBITDA expected between $55 million and $60 million. For Secure Communications, revenue is forecasted between $234 million and $244 million for the full year, with adjusted EBITDA ranging from $37 million to $47 million.

Additional News

In recent weeks, BlackBerry has made significant strides in enhancing its strategic partnerships and product offerings. The company announced a collaboration with AMD to advance precision and control in the robotics industry, leveraging new levels of low latency and jitter. Additionally, BlackBerry launched CylanceMDR™, an AI-powered Managed Detection and Response solution designed to bolster cybersecurity capabilities. The company also introduced Cylance Assistant, a generative AI cybersecurity advisor to enhance threat detection and decision-making. These strategic moves reflect BlackBerry's commitment to innovation and its focus on expanding its market presence across various sectors.