BlackBerry 2026 Q2 Earnings Returns to Profitability with 167.5% Net Income Swing

BlackBerry reported its fiscal 2026 Q2 earnings on September 25, 2025. The company exceeded expectations by returning to profitability and raising full-year guidance across all divisions. Results reflected a strong quarter with revenue up 2.7% and significant improvement in net income. The earnings report also highlighted robust performance across key segments, driven by strategic initiatives and market expansion.

Revenue
BlackBerry's total revenue in Q2 2026 grew to $129.60 million, reflecting a 2.7% year-over-year increase from $126.20 million in the same period in 2025. QNX, the company's operating systems division, delivered the largest contribution, with revenue reaching $63.10 million. Secure Communications followed closely with $59.90 million, driven by high retention rates and strategic wins in government sectors. Licensing revenue contributed $6.60 million, completing the total revenue across all business units.

Earnings/Net Income
BlackBerry returned to profitability in Q2 2026 with an EPS of $0.02, reversing a $0.03 loss in the prior year, representing a 166.7% positive change. The company reported a net income of $13.30 million, a 167.5% turnaround from a net loss of $19.70 million in Q2 2025. This significant improvement in profitability signals a strong operational and financial recovery.

Price Action
The stock price of BlackBerry demonstrated a strong post-earnings response, climbing 7.89% on the latest trading day and surging 24.00% month-to-date. The positive momentum reflected investor confidence in the company’s strategic direction and financial performance.

Post-Earnings Price Action Review
The earnings report was followed by a sharp and sustained price increase, with the stock gaining 7.89% on the day of the release and 10.71% over the subsequent trading week. The stock’s 24.00% gain for the month highlighted broader investor optimism about BlackBerry’s future, fueled by its improved financial results and revised guidance. The upward trend underscored a shift in market sentiment toward the company's renewed profitability and growth prospects.

CEO Commentary
John Giamatteo, CEO of BlackBerry, described Q2 as a strong performance across all divisions, with each segment exceeding expectations. QNX showed 15% revenue growth, a 32% adjusted EBITDA margin, and met the “rule of 40” performance benchmark. The division also secured key design wins in China and expanded partnerships with major players like BMW and Qualcomm. In Secure Communications, the company reported a 93% dollar-based net retention rate and continued to shift toward recurring revenue models. Looking ahead, Giamatteo expressed confidence in QNX’s expansion into robotics, medical, and industrial automation, as well as the adoption of the QNX OS for Safety 8.0. Despite ongoing macroeconomic challenges, he described the second half of the year as “solid” and anticipated continued momentum.

Guidance
BlackBerry raised its full-year 2026 guidance across all divisions. QNX revenue is now expected to range between $256 million and $270 million, with adjusted EBITDA between $64 million and $73 million. Secure Communications revenue guidance was lifted to $239–$247 million, with adjusted EBITDA of $38–$48 million. Total company revenue for the year is projected at $519–$541 million, with adjusted EBITDA between $82 million and $101 million. Q3 revenue is forecast at $132–$140 million, with adjusted EBITDA between $20 million and $28 million. Non-GAAP EPS for the full year is expected to range from $0.11 to $0.15.

Additional News
In the three weeks following the September 25 earnings report, several key non-earnings related updates were published. On September 9, Zacks Equity Research noted a mixed market reaction to BlackBerry’s stock price, which fell despite a broader market uptick, raising questions about investor sentiment. The article highlighted potential concerns about valuation multiples and market positioning. On August 19, another Zacks report observed a prior decline in the stock amid broader volatility, with no earnings-related factors cited. No significant M&A activity, executive changes, or corporate buybacks were announced within the timeframe, though ongoing strategic partnerships and design wins were emphasized as key drivers for future growth.