BlackBerry Lifts Fiscal 2027 Outlook After Record QNX Quarter
Second-quarter revenue was $163.3 million, up 26% from a year earlier, as QNX posted a record $80.3 million and the company raised its full-year outlook.
BlackBerry Limited (BB), the Waterloo, Ontario, software company, raised its fiscal 2027 revenue and adjusted EBITDA outlook after a second quarter in which QNX posted record sales and the company booked its first Alloy Kore design win.
Total company revenue was $163.3 million for the three months ended August 31, 2026, up 26% from a year earlier. Adjusted EBITDA was $47.0 million, or a 29% margin, up 81% year-over-year. GAAP operating income was $33.6 million, up 192% year-over-year. The quarter produced a second consecutive Rule of 40 result, defined as GAAP revenue growth plus adjusted EBITDA margin.
QNX revenue was a record $80.3 million, up 27% year-over-year. Segment adjusted gross margin was 87% and segment adjusted EBITDA was $29.0 million, a 36% margin. Chief executive John J. Giamatteo said QNX’s record was driven by strength in the core automotive business. Coretura, the joint venture between Volvo Group and Daimler Truck, chose Alloy Kore for its next-generation commercial vehicle software platform. The first Alloy Kore design win, the largest in QNX history, added more than $100 million to the QNX royalty backlog. Giamatteo also pointed to momentum beyond automotive in general embedded markets and physical AI.
Secure Communications revenue was $60.9 million, up 2% year-over-year. Segment adjusted gross margin was 61% and segment adjusted EBITDA was $8.0 million, a 13% margin. Giamatteo described the unit as a stable and profitable contributor following a particularly strong first quarter. Annual recurring revenue remained stable at $221 million, with dollar-based net revenue retention of 91%. Licensing revenue was $22.1 million and Licensing segment adjusted EBITDA was $20.0 million.
GAAP net income was $33.9 million, or $0.06 a share, the sixth consecutive quarter of positive GAAP net income. Adjusted net income was $43.2 million and adjusted basic earnings were $0.07 a share. Operating cash flow was $29.3 million, an improvement of $25.9 million from the year-earlier quarter. Cash and investments ended the quarter at $447.1 million.
GAAP gross margin was 77.8% and adjusted gross margin was 78.2%. Giamatteo said revenue, profitability, and cash flow generation all exceeded the company’s expectations.
BlackBerry now guides third-quarter fiscal 2027 revenue to $143 million to $154 million and full-year fiscal 2027 revenue to $616 million to $636 million. Full-year adjusted EBITDA is guided at $141 million to $158 million. QNX revenue is expected at $82 million to $88 million in the third quarter and $315 million to $325 million for the year. Secure Communications revenue is guided at $55 million to $60 million in the third quarter and $260 million to $270 million for the year. Licensing revenue is expected at approximately $6 million in the third quarter and approximately $41 million for the year. Adjusted basic earnings are guided at $0.04 to $0.05 a share in the third quarter and $0.19 to $0.22 a share for the year. Operating cash flow is expected at $20 million to $30 million in the third quarter and approximately $115 million for the year.