After years of restructuring and a dramatic shift away from its smartphone legacy, BlackBerry Limited (BB) is entering a crucial moment that could determine whether its transformation into a software-focused technology company gains further momentum. Investors are now watching June 25 closely, when BlackBerry is scheduled to release its fiscal first-quarter 2027 (ended May 31, 2026) results and provide an update on the company’s progress across cybersecurity, secure communications, and its QNX automotive software business.
The upcoming report arrives as BlackBerry attempts to prove that its turnaround strategy is translating into sustainable growth. The company has been focusing on higher-margin software markets, including connected vehicles, enterprise security, and mission-critical communications, areas that could benefit from rising demand for cybersecurity and embedded technology.
The June 25 earnings update is supposed to provide clarity on whether recent operational improvements can continue and whether management can provide stronger visibility into the company’s long-term growth potential.
About BlackBerry Stock
BlackBerry Limited is a software and cybersecurity company headquartered in Waterloo, Ontario, Canada. Once known globally for its iconic smartphones, BlackBerry has transformed into an enterprise-focused technology provider specializing in secure communications, endpoint security, and embedded software through its QNX platform. BlackBerry operates across key segments including Cybersecurity, Secure Communications, and Internet of Things (IoT), positioning itself around growing demand for secure digital infrastructure and automotive technology. BlackBerry has a market cap of $5.2 billion.
BlackBerry has delivered a strong stock market comeback, with shares generating significant returns over the past year as investors gained confidence in the company’s transformation into a software and cybersecurity-focused business. The stock has climbed sharply as BlackBerry benefited from renewed optimism around its QNX automotive software platform, cybersecurity operations, and improving financial performance.
Over the past year, BlackBerry shares have gained 101%, while the stock has delivered a 129.7% year-to-date (YTD) return, reflecting strong investor momentum toward the company’s growth strategy. Over the most recent three-month period, shares have also posted 169.5% gains as the market rewarded BlackBerry’s progress toward profitability and expansion in high-growth technology markets.
The rally pushed BlackBerry to a new 52-week high of $10.93 reached on June 4, highlighting a major shift in investor sentiment compared with the company’s previous years of struggles.
The stock is evidently trading at a premium valuation compared to its industry peers at 65.93 times forward earnings.
Improving Financial Positioning
BlackBerry reported a strong finish to fiscal 2026, highlighting continued progress in its transformation into a software-focused company. The company released its Q4 and full fiscal year 2026 results on April 9, 2026.
For the fourth quarter of fiscal 2026, BlackBerry generated $156 million in revenue, up 10% year-over-year (YOY). Gross profit increased to $121.4 million from $104.1 million, while gross margin expanded to 77.8% from 73.5%, reflecting a more favorable software mix and operational improvements. The company’s adjusted net income increased by 92% YOY to $34 million.
The QNX division remained the primary growth driver, with quarterly revenue rising 20% YOY to a record $78.7 million. QNX adjusted EBITDA increased to $21.4 million, supported by strong demand for embedded software in automotive, robotics, and other safety-critical applications. The Secure Communications segment also showed improvement, with revenue increasing to $72.5 million, representing 8% YOY growth, while licensing revenue declined to $4.8 million from $8.6 million. Its EPS swung higher to the positive territory at $0.04, compared to a loss per share in the prior-year quarter. Its adjusted EPS stood at $0.06, an increase from $0.03.
For the full fiscal year 2026, BlackBerry reported total revenue of $549.1 million, up 3% YOY. Full-year gross profit increased to $418.2 million from $394.9 million, and gross margin improved to 76.2% from 73.8%. The company swung to profitability, posting net income of $53.2 million, compared with a net loss of $79 million in fiscal 2025. Its adjusted EPS increased to $0.16 from $0.02.
Furthermore, BlackBerry issued an optimistic fiscal 2027 outlook, expecting revenue of $584 million to $611 million. The company expects QNX revenue of $290 million to $307 million, Secure Communications revenue of $270 million to $280 million, adjusted EBITDA of $110 million to $130 million, and non-GAAP EPS of $0.15 to $0.19. Management’s guidance reflects confidence that the company’s turnaround is gaining traction, providing a long-term growth opportunity.
In addition, for Q1, BlackBerry guided for total revenue of $132 million to $140 million, including QNX revenue of $60 million to $64 million, Secure Communications revenue of $66 million to $70 million, and licensing revenue of about $6 million. The company expects adjusted EBITDA of $14 million to $22 million, non-GAAP EPS of $0.02 to $0.03, and operating cash flow ranging from breakeven to about $10 million.
Analysts expect the company’s EPS to improve 8.3% YOY to $0.13 in fiscal 2027 and rise another 30.8% to $0.17 in fiscal 2028. Moreover, the consensus EPS estimate for the Q1 stood at $0.02, indicating a 100% YOY rise.
What Do Analysts Expect for BlackBerry Stock?
Despite the ongoing progress in its business strategy, analysts remain cautious about its prospects. Overall, BB has a consensus “Hold” rating. Of the seven analysts covering the stock, one advises a “Strong Buy,” and the remaining six analysts give a “Hold” rating.
While the stock has already surged past the average analyst price target for BB of $5.61, the Street-high target price of $10 suggests that the stock could rally as much as 13.9%.
