BlackBerry Ltd
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.13%.
Did BB Beat Earnings? Q2 2026 Results
BlackBerry posted a decisive earnings beat in its second quarter of fiscal year 2026, with non-GAAP EPS of $0.04 coming in well ahead of the $0.014 consensus — a 185.71% positive surprise — while revenue of $129.60 million topped estimates of $122.03 million by 6.20% and grew 2.7% year-over-year, marking the company's second consecutive quarter of GAAP profitability. The standout driver was BlackBerry's QNX division, which delivered $63.10 million in revenue, up 15% year-over-year, and achieved a "Rule of 40" quarter, with the unit's momentum reinforced by the general availability of the NVIDIA DRIVE AGX Thor development kit integrated with QNX OS for Safety 8. Total adjusted gross margins expanded four percentage points year-over-year to approximately 75%, while operating cash flow swung positive to $3.40 million from negative $16.00 million a year ago — a <a href="https://247wallst.com/investing/2026/03/03/best-buys-leaner-cost-structure-drives-post-earnings-rally/">leaner cost structure paying off</a>. Management raised its full-year FY2026 revenue guidance to $519–541 million and lifted adjusted EBITDA guidance to $82–101 million, reflecting growing confidence in both core divisions.
- QNX division achieved 'Rule of 40' quarter with 15% YoY revenue growth and 32% adjusted EBITDA margin
- Total company GAAP and adjusted gross margin expanded 4 percentage points year-over-year to 75%
- Operating expenses reduced year-over-year from $86.4 million to $85.1 million
- Secure Communications ARR increased YoY and sequentially to $213 million
- Secure Communications adjusted gross margin expanded 5 percentage points YoY to 66%
“BlackBerry delivered year-over-year revenue growth and expanded gross margins while reducing operating expenses. This combination ensured strong profitability in the second quarter, beating expectations and achieving a second consecutive quarter of GAAP profitability.”
BlackBerry CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY2026 (ending November 30, 2025), BlackBerry guides total revenue of $132–140 million, QNX revenue of $66–70 million, Secure Communications revenue of $60–64 million, licensing revenue of approximately $6 million, total company adjusted EBITDA of $20–28 million, non-GAAP basic EPS of $0.02–0.04, and operating cash flow of $10–20 million. For full fiscal year 2026 (ending February 28, 2026), the company raised guidance to total revenue of $519–541 million, QNX revenue of $256–270 million, Secure Communications revenue of $239–247 million, licensing revenue of approximately $24 million, total company adjusted EBITDA of $82–101 million, non-GAAP basic EPS of $0.11–0.15, and operating cash flow of $35–40 million.
BB YoY Financials
BB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.