BlackBerry Ltd
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.91%.
Did BB Beat Earnings? Q1 2026 Results
BlackBerry delivered a standout first quarter for fiscal 2026, posting earnings of $0.02 per share against a consensus estimate of just $0.0026 — a beat of 669.23% — while revenue of $121.70 million topped the $112.18 million estimate by 8.48%, even as the top line slipped 1.4% from a year ago. The headline story, however, was profitability: the company recorded GAAP net income of $1.90 million, its first quarterly profit since Q4 FY2022, compared to a net loss of $41.40 million in the year-ago period, driven largely by a meaningful pullback in operating expenses to $88.30 million from $102.90 million. The QNX embedded software division was a key engine, growing revenue 8% year-over-year to $57.50 million with an 81% adjusted gross margin, while Secure Communications also beat guidance despite some revenue softness. <a href="https://247wallst.com/investing/2026/03/03/best-buys-leaner-cost-structure-drives-post-earnings-rally/">Leaner cost discipline</a> proved central to the turnaround. Looking ahead, BlackBerry guided full-year revenue of $508–$538 million and non-GAAP EPS of $0.08–$0.10, though management flagged potential headwinds from U.S. tariffs affecting the automotive market.
- QNX revenue grew 8% year-over-year driven by embedded software adoption in automotive
- Secure Communications adjusted gross margin improved 4 percentage points year-over-year to 70%
- Operating expenses decreased significantly from $102.9M to $88.3M year-over-year
- Total company adjusted EBITDA margin expanded to 13.5% from 8.5% year-over-year
- GAAP profitability achieved for the first time since Q4 FY22
“BlackBerry made a strong start to the new fiscal year, building on the solid foundation we as a company have laid over the past year. Both our QNX and Secure Communications divisions continue to execute effectively against their strategies, beating both top line and profitability expectations. BlackBerry's solid balance sheet and plan for continuing profitability and cash generation this fiscal year enable us to allocate capital efficiently, with $10 million of share buybacks executed this past quarter.”
BlackBerry CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY2026 (ending August 31, 2025), BlackBerry guides total revenue of $115–$125 million, with QNX at $55–$60 million, Secure Communications at $54–$59 million, and Licensing at approximately $6 million. Q2 adjusted EBITDA is expected at $8–$14 million, non-GAAP basic EPS at breakeven to $0.01, and operating cash flow usage of ($5)–($15) million. For full fiscal year FY2026 (ending February 28, 2026), total revenue is guided at $508–$538 million, with QNX at $250–$270 million, Secure Communications at $234–$244 million, and Licensing at approximately $24 million. Full-year adjusted EBITDA is expected at $72–$87 million, non-GAAP basic EPS at $0.08–$0.10, and operating cash flow of approximately $35 million. The company raised its full-year Secure Communications guidance.
BB YoY Financials
BB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.