BlackBerry raises outlook as QNX revenue hits record
Thu, 24th Sep 2026 (Today)
BlackBerry reported second-quarter fiscal 2027 revenue of USD $163.3 million and raised its full-year revenue and adjusted EBITDA outlook.
Revenue rose 26% from a year earlier. Adjusted EBITDA increased 81% to USD $47 million, GAAP operating income climbed 192% to USD $33.6 million, and GAAP net income remained positive for a sixth consecutive quarter at USD $33.9 million. Operating cash flow reached USD $29.3 million.
The results were driven largely by the QNX division, which posted record quarterly revenue of USD $80.3 million, up 27% year on year. Adjusted EBITDA for QNX rose 41% to USD $29 million, and the segment's adjusted gross margin reached 87%.
QNX also secured its first Alloy Kore design win through Coretura, the joint venture between Volvo Group and Daimler Truck. BlackBerry described it as the largest design win in QNX history and said it added more than USD $100 million to the QNX royalty backlog.
Secure Communications, the group's other main operating business, reported revenue of USD $60.9 million, up 2% from a year earlier. Segment adjusted EBITDA fell 18% to USD $8 million, while adjusted gross margin declined five percentage points to 61%.
Recurring revenue in Secure Communications was steady. Annual recurring revenue stood at USD $221 million, and dollar-based net retention was 91%.
Licensing revenue was USD $22.1 million, with adjusted EBITDA of USD $20 million. That was a sharp increase from the comparable quarter, when licensing revenue was USD $6.6 million.
Guidance raised
For the third quarter, BlackBerry forecast total revenue of USD $143 million to USD $154 million and adjusted EBITDA of USD $28 million to USD $37 million. For the full fiscal year, it now expects revenue of USD $616 million to USD $636 million and adjusted EBITDA of USD $141 million to USD $158 million.
BlackBerry expects QNX to contribute USD $315 million to USD $325 million in full-year revenue, while Secure Communications is forecast to deliver USD $260 million to USD $270 million. Licensing revenue is expected to be about USD $41 million for the year.
Adjusted basic earnings per share are projected at USD $0.19 to USD $0.22 for the full year. BlackBerry also expects about USD $115 million in operating cash flow over the year.
Business lines
Beyond the financial results, the quarter included several product and customer developments focused on embedded software, automotive systems and secure communications. In addition to the Coretura contract, Momenta and XHEART selected QNX OS for Safety, built on SDP 8.0, for an autonomous-driving platform certified to ISO 26262 ASIL D.
QNX also added support for the Hailo-8 AI Accelerator on SDP 8.0 as part of its push in what BlackBerry calls Physical AI. In secure communications, SecuSUITE renewed its NIAP Common Criteria certification, while AtHoc added integrations with Microsoft Teams and Entra ID.
Cash and investments at the end of the quarter totalled USD $447.1 million, up from USD $432.4 million at the end of the last fiscal year. The balance sheet also showed long-term notes of USD $197.1 million.
GAAP gross margin improved to 77.8% from 74.5% a year earlier, while adjusted gross margin rose to 78.2% from 75.0%. Adjusted net income increased 79% to USD $43.2 million, and adjusted basic earnings per share were USD $0.07.
BlackBerry said this was its second consecutive quarter meeting its Rule of 40 measure, which combines year-on-year revenue growth and adjusted EBITDA margin. Based on 26% revenue growth and a 29% adjusted EBITDA margin, the total exceeded that threshold.
John J. Giamatteo, Chief Executive Officer of BlackBerry, said the quarter reflected progress in revenue, profitability and cash generation.
“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,” said John J. Giamatteo, Chief Executive Officer of BlackBerry. “QNX delivered record performance in the quarter, driven by strength in our core automotive business. The first Alloy Kore design win, the largest design win in QNX history, marks an important commercial milestone. We also continue to build momentum beyond automotive in the General Embedded Markets and Physical AI. Secure Communications remained a stable and profitable contributor following a particularly strong first quarter. As we enter the second half of the year, we remain focused on disciplined execution, investing behind our growth opportunities, and leveraging the strength of our balance sheet to create long-term value for our shareholders.”