BlackBerry Swings to $53 Million Profit as QNX Revenue Hits Record, Stock Jumps 11%
NEW YORK, April 9 —
BlackBerry (BB) posted its first full-year GAAP profit of $53.2mn, swinging from a $79mn loss, and shares surged 11%.
- Q4 revenue $156mn, beating the $144mn estimate by 8%. Adjusted EPS of 6 cents topped the 5-cent consensus.
- At $3.78 and 19.6x forward P/E, BlackBerry trades at a fraction of pure-play cybersecurity comps, but full-year revenue grew just 3%.
- FY27 guidance calls for $584mn to $611mn in revenue and 15 to 19 cents in adjusted EPS. Q1 FY27 revenue guided to $132mn to $140mn.
What Actually Happened
The headline is the profit swing. The real story is QNX. BlackBerry's embedded automotive software division posted Q4 revenue of $78.7mn, up 20% YoY, and full-year QNX revenue hit $268mn with an 83% gross margin. That is a profitable software business inside a company most investors still associate with phones. The royalty backlog sits at $950mn, giving some visibility into future quarters. Secure communications, the other half, grew 8% in Q4 to $72.5mn and carries a 70% gross margin. Both segments are now profitable at the EBITDA line.
Free cash flow came in at $46.5mn for the year. BlackBerry ended with $432mn in cash even after buying back roughly $60mn in shares. CEO John Giamatteo called BlackBerry "a growth company with a proven track record." That is a bold claim for a company that grew revenue 3% for the full year.
The Catch
The 3% full-year growth number undercuts the "growth company" pitch. Q4 was strong at 10%, but Q1 FY27 guidance of $132mn to $140mn implies a sequential step down from $156mn. Some of that is seasonality — QNX royalties spike around automakers' fiscal year-ends. The FY27 revenue midpoint of $598mn would represent about 9% growth. Respectable, but not the kind of acceleration that gets a stock repriced higher.
The forward P/E of 19.6x looks cheap on paper. But BlackBerry needs to prove QNX momentum extends beyond its core automotive install base. Management points to medical devices, robotics, and industrial IoT. Those markets are real, but they contribute little revenue today.
Bottom Line
BlackBerry is a better business than it was two years ago. A $53mn profit, $46.5mn in free cash flow, $432mn in cash, and a QNX division with 83% gross margins and a $950mn backlog — that is real. The question is whether 9% guided growth is enough to hold investor interest after an 11% one-day pop, or whether the stock drifts back down while Wall Street waits for proof. The Q1 FY27 print is the one to watch, specifically QNX revenue outside of automotive. That number will tell you whether this is a turning point or just a strong quarter.
For a full financial breakdown of BlackBerry, generate your free report at Basis Report for BB.
Basis Report does not hold positions in securities discussed. This is not investment advice.