BlackBerry Ltd
Q2 2027 Earnings
Market Reaction
Did BB Beat Earnings? Q2 2027 Results
BlackBerry delivered a decisive beat in Q2 FY2027, posting adjusted EPS of $0.07 against a consensus estimate of $0.04, a 75% beat that extended the company's streak to six consecutive quarters of topping expectations. Revenue of $163.30 million cleared the $145.53 million consensus by 12.21% and grew 26% year-over-year, with the QNX segment serving as the primary engine, contributing record quarterly revenue of $80.30 million, up 27% year-over-year, on an 87% adjusted gross margin. A landmark design win with Coretura, the Volvo Group and Daimler Truck joint venture that selected the QNX-based Alloy Kore platform for commercial trucks, added over $100 million to the QNX royalty backlog and underscored the segment's expanding commercial footprint. Adjusted EBITDA reached $47 million, up 81% year-over-year, yielding a 29% margin. Looking ahead, management raised full-year FY2027 revenue guidance to $616 million to $636 million and adjusted EBITDA to $141 million to $158 million, signaling sustained confidence in the company's trajectory.
- QNX record quarterly revenue driven by strength in core automotive business
- Adjusted EBITDA grew 81% YoY, achieving second consecutive Rule of 40 performance
- Adjusted gross margin improved 3 percentage points YoY to 78.2%
- Operating cash flow improved by $25.9 million YoY to $29.3 million
- Licensing revenue and EBITDA significantly higher than prior-year period
“Our strong second quarter performance provides further evidence that BlackBerry's profitable growth model is working, with revenue, profitability, and cash flow generation all exceeding our expectations.”
BlackBerry CEO, on the earnings call
Forward Guidance & Outlook
BlackBerry raised its full fiscal year 2027 revenue guidance to $616–$636 million and adjusted EBITDA to $141–$158 million, with adjusted basic EPS of $0.19–$0.22 and approximately $115 million in operating cash flow. For Q3 FY2027, the company guided total revenue of $143–$154 million (QNX $82–$88 million, Secure Communications $55–$60 million, Licensing approximately $6 million), total company adjusted EBITDA of $28–$37 million, adjusted basic EPS of $0.04–$0.05, and operating cash flow of $20–$30 million.
BB YoY Financials
BB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.