BlackBerry Q2 Earnings & Revenue Beat Estimates, Up Y/Y, Stock Rises

BlackBerry Limited BB reported second-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of breakeven to EPS of 1 cent. In the year-ago quarter, it reported a non-GAAP EPS at breakeven. The Zacks Consensus Estimate was pegged at 1 cent.

Quarterly total revenues of $129.6 million exceeded its guidance ($115-$125 million) and were up 3% year over year. Management reported that the Secure Communications division outperformed expectations on both top and bottom line, while achieving improvements across its key metrics.

For fiscal 2025, total revenues are forecast at $519 million to $541 million, with QNX contributing $256 million to $270 million, Secure Communications $239 million to $247 million and Licensing around $24 million. Adjusted EBITDA is anticipated at $64 million to $73 million for QNX, $38 million to $48 million for Secure Communications and about $20 million for Licensing. The company projects total company adjusted EBITDA of $82 million to $101 million. Non-GAAP EPS in expected the range of 11-15 cents, and operating cash flow of $35 million to $40 million.

Following better-than-anticipated performance and bolstered view, BB’s shares gained around 9% in the trading session yesterday. The stock has gained 83.1% in the past year compared with the Zacks Internet-Software industry’s growth of 35.6%.

BB’s Fiscal Q2 in Details

Revenues from the QNX business totaled $63.1 million, surpassing the high end of guidance ($55-$60 million). This reflects 15.4% year-over-year growth. During the quarter, QNX in collaboration with NVIDIA, launched the NVIDIA DRIVE AGX Thor development kit integrated with the safety-certified QNX OS for Safety 8, enabling faster development of next-generation autonomous driving systems. QNX also rolled out its foundational QNX OS for Safety 8 to simplify the design and certification of safety- and security-critical embedded systems. The QNX8 pipeline continues to expand, split evenly between automotive and general embedded markets, with conversions underway.

Secure Communication revenues declined 9.9% year over year to $59.9 million. It, however, beat the guidance ($54-$59 million) driven by reduced customer churn in UEM and upside contributions from both ad hoc and SecuSUITE.
Key wins included a 5-year hosted secure voice deal with the German government, a major renewal and upsell with the U.S. State Department and new contracts with the U.S. Coast Guard, Veterans Affairs and a Canadian government entity. UEM renewals were secured across major financial institutions, Rolls-Royce, Hogan Lovells, Babcock the IRS and DHS, while BlackBerry UEM became the first solution certified by Germany’s BSI. Overall, it was a solid quarter for Secure Communications, with a strong pipeline of large government opportunities, though sales cycles remain relatively long.

Licensing revenues reached $6.6 million compared with $5 million in the previous-year quarter, driven by new licensing deals. It beat the company’s guidance of around 6 million.

BB’s Margin Performance

Adjusted gross margin was 75%, up from 70.7% in the year-ago period. QNX’s gross margin were flat year over year at 83%. Secure Comms' gross margin was 66%, rising year over year but declining sequentially due to revenue mix.

Adjusted EBITDA was $25.9 million, up from $15.1 million in the year-ago quarter. The company expected adjusted EBITDA in the range of $8-$14 million. 

BlackBerry Limited Price and Consensus

BlackBerry Limited price-consensus-chart | BlackBerry Limited Quote

QNX’s adjusted EBITDA for the quarter came in above the high end of guidance ($10-$13 million) at $20.5 million. Secure Communications’ adjusted EBITDA beat expectations ($3-$6 million) with adjusted EBITDA of $9.7 million. Licensing adjusted EBITDA beat projection (around $5 million) at $5.6 million.

Adjusted operating expenses were $74.8 million, down 4.7%.

BB’s Cash Flow & Liquidity

For the quarter ended on Aug. 31, 2025, BlackBerry provided $3.4 million of net cash in operating activities compared with cash used $16 million in the prior-year quarter. Management had guided the usage of $5-$15 million.

As of Aug. 31, BlackBerry had $290.5 million in cash, cash equivalents, short-term and long-term investments, down from $381.9 million as of May 31, 2025.  The company returned $20 million to shareholders during the quarter via a buyback of around 5 million common shares.

BB’s Fiscal Q3 Guidance

For fiscal third-quarter 2026, the company anticipates revenues to be between $132 million and $140 million, with QNX revenues of $66 million to $70 million, Secure Communications revenues of $60 million to $64 million and Licensing revenues of approximately $6 million.

Adjusted EBITDA is projected at $13 million to $17 million for QNX, $12 million to $16 million for Secure Communications and about $5 million for Licensing.
Non-GAAP EPS is expected in the range of $2-$4, with operating cash flow between $10 million and $20 million.

BB’s Zacks Rank

At present, BlackBerry carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in the Same Space

CoreWeave, Inc. CRWV reported a second-quarter 2025 loss per share of 60 cents compared with a loss of $1.62 in the year-ago quarter. Adjusted net loss for the quarter was $131 million compared with $5 million a year ago. The Zacks Consensus Estimate was pegged at a loss of 23 cents per share.
Revenues in the quarter were a record $1212.8 million, which beat the Zacks Consensus Estimate by 12.5%. Total revenues jumped 207% year over year. The top-line performance was driven by increasing demand for the AI-cloud platform.

Guidewire Software, Inc GWRE reported non-GAAP earnings per share of 84 cents in fourth-quarter fiscal 2025 (ended July 31, 2025), up 35.5% year over year and beat the Zacks Consensus Estimate of 62 cents. 
The company reported revenues of $356.6 million, up 22% year over year. Revenues beat the Zacks Consensus Estimate by 5.8%. The figure also surpassed the company’s guided range of $332-$340 million. This uptick was driven by solid sales activity across various geographies, expansions and net new deals.

Atlassian TEAM reported fourth-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 98 cents beat the Zacks Consensus Estimate by 18.1%. The figure jumped 48.5% from the year-ago quarter’s non-GAAP earnings of 66 cents per share.
TEAM’s fiscal fourth-quarter revenues climbed 22% year over year to $1.38 billion and beat the Zacks Consensus Estimate by 2.3%. The top line was primarily driven by robust paid growth in Atlassian Government Cloud and Isolated Cloud and momentum in AI-adoption.

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