BlackBerry 2026 Q3 Earnings Beats Expectations with 230.5% Net Income Surge

BlackBerry (BB) reported fiscal 2026 Q3 earnings on Dec 18, 2025, delivering results that exceeded expectations. The company returned to profitability with a net income of $13.70 million, a 230.5% increase from a $10.50 million loss in the prior year. Guidance was raised for Q4 and full-year 2026, reflecting confidence in QNX’s momentum and secure communications growth.

Revenue

Total revenue declined slightly by 1.3% to $141.80 million in 2026 Q3, compared to $143.60 million in 2025 Q3. The QNX division, a key growth driver, achieved record revenue, fueled by design wins in automotive and embedded markets. Secure Communications also outperformed, while Licensing revenue remained modest.

Earnings/Net Income

BlackBerry’s turnaround was marked by an EPS of $0.02, reversing a $0.02 loss in 2025 Q3. The 230.5% net income improvement underscored cost discipline and operational efficiency. The EPS result, however, remains cautiously optimistic given the company’s mixed profitability history.

Post-Earnings Price Action Review

The strategy of buying BlackBerry shares after a revenue increase quarter-over-quarter and holding for 30 days yielded a CAGR of 1.87%, underperforming the market by 78.74 percentage points. With a maximum drawdown of 57.90% and a Sharpe ratio of 0.03, the strategy highlighted the stock’s volatility and the need for robust risk management.

CEO Commentary

CEO John Giamatteo emphasized QNX’s “best-ever revenue quarter,” driven by automotive and embedded market expansion. Strategic priorities included accelerating QNX’s growth through design wins and partnerships, leveraging the Good Energy Design Platform (GEDP) to expedite product development, and expanding into China and regulated industries. Certifications like BSI and FedRAMP were cited as critical for securing communications.

Guidance

BlackBerry raised full-year 2026 revenue guidance to $531–$541 million and Q4 revenue to $138–$148 million. QNX is expected to set a new revenue record in Q4, with Secure Communications and Licensing segments showing resilience. Non-GAAP EPS guidance for Q4 was set at $0.03–$0.05, with full-year guidance at $0.14–$0.16.

Additional News

Within three weeks of the earnings report, BlackBerry announced the appointment of John Wall as president of QNX, underscoring its commitment to automotive software leadership. The company also partnered with Vector to develop a vehicle software platform and launched a women-in-cybersecurity initiative in Malaysia. Share repurchases totaling $5 million were executed, signaling confidence in shareholder value.