BlackBerry stock soars after company delivers better-than-expected results, raises targets
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- BlackBerry reported fiscal Q1 revenue of US$152.9-million (up 26% year-over-year), adjusted operating earnings of US$36.3-million (up 144%), and adjusted EPS of 4 US cents, beating its April forecast of up to US$140-million revenue, US$14–22-million operating earnings, and 2–3 cents EPS.
- BlackBerry stock jumped more than 20% in early morning trading and was already up 127% year-to-date as of Wednesday's close, making it one of the top-performing tech stocks of the year.
- QNX, BlackBerry's embedded software division, posted US$72.3-million in revenue (up 26%) and US$19.3-million in adjusted operating earnings (up 52%), a 27% margin that CFO Tim Foote called a top performer by software industry standards.
- SecuSUITE secure communications revenue rose 24% to US$73.6-million, driven by a one-time boost from an expanded Government of Canada contract to deploy the encrypted communications product through 2033; annual recurring revenue in the unit hit US$220-million, up 5.3%.
- BlackBerry raised its full-year revenue guidance to US$594–621-million (from US$584–611-million) and lifted its operating earnings range to US$119–139-million.
- Stifel analyst Suthan Sukumar initiated coverage with a buy rating and a US$12 price target, arguing "the market still misdefines BlackBerry" and that it stands to benefit as demand for physical AI technology grows.
- CEO John Giamatteo, who took over in late 2023 after running the cybersecurity unit, called the quarter a "rock solid start" to the fiscal year, citing cost cuts, the sale of a money-losing cybersecurity unit, and a refocus on QNX and software-defined vehicles.
- QNX is expanding beyond vehicles into robots, automated industrial applications, and medical devices, and plans to roll out new software functionality this year that could generate three times the revenue per unit it currently derives.
Why it matters: BlackBerry posted its fifth consecutive quarter of net profit — ending a three-year drought — while raising guidance on every major line, and the QNX division's 27% adjusted operating margin signals the embedded-software pivot is generating real cash, not just revenue. The 127% YTD run and Stifel's initiation show investors are repricing BlackBerry as a vehicle-software and secure-comms play rather than a faded phone maker.
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