BlackBerry BB 2026Q1 Earnings Preview Upside Potential on Strong Software Growth

Generated by AI AgentAinvestweb
Saturday, Jun 21, 2025 7:06 pm ET1min read
Forward-Looking Analysis
BlackBerry's earnings for Q1 2026 are anticipated to reflect the company's focus on growth, with a projected EPS improvement from a loss of $0.03 to a profit of $0.03 per share. Analysts predict a 39.5% annual growth in earnings and a 2.2% increase in revenue, driven mainly by a 20.5% growth in software earnings. Notably, the return on equity is forecasted to be 9.6% within three years. Despite some recent downgrades, the consensus remains optimistic, with expectations that will achieve profitability over the next three years. Analyst coverage is robust, suggesting a well-supported outlook for future performance.

Historical Performance Review
In the fourth quarter of 2025, BlackBerry reported revenue of $143.90 million and a net income of $-7.00 million, equating to an EPS of $-0.01. The gross profit stood at $105.90 million, showing a positive margin despite the net loss. This performance indicates some ongoing challenges but also highlights areas of strength in operations.

Additional News
BlackBerry recently completed the sale of its Cylance assets to Arctic Wolf Networks, Inc. for CAD 160 million, reflecting its strategic move to focus on core cybersecurity and offerings. The company also announced leadership changes, including the resignation of key officers, and launched new solutions like the MotionWise Scheduling Solution for QNX 8. Additionally, BlackBerry has been active in expanding its board with experienced members, emphasizing its commitment to strengthening governance and strategic direction.

Summary & Outlook
BlackBerry's financial health appears on an improving trajectory with expected profitability in the coming years. Key growth catalysts include the expansion of software revenues and strategic asset sales, which align with its focus on core businesses. Recent leadership changes and product launches further support this growth narrative. While challenges remain, the outlook is cautiously optimistic, leaning towards a bullish stance given the expected earnings turnaround and strategic initiatives underway. Overall, BlackBerry seems poised for a potential upswing.

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