BlackBerry Lifts Full-Year Outlook as Software Solutions Unit Drives Second-Quarter Growth

12:09 PM EDT, 09/24/2026 (MT Newswires) -- BlackBerry (BB) raised its full-year outlook on Thursday as the company's fiscal second-quarter results increased year over year, driven by double-digit revenue growth in its software solutions segment. The Canada-based firm, once a major name in the smartphone industry, now expects adjusted earnings in a range of $0.19 to $0.22 per share for fiscal 2027, up from its previous projections of $0.16 to $0.20. Revenue is pegged at $616 million to $636 million, compared with the $594 million to $621 million prior guidance. The consensus on FactSet is for non-GAAP EPS of $0.19 and sales of $610.1 million. For the quarter ended August, adjusted EPS rose to $0.07 from $0.04 the year before. Four analysts polled by FactSet had estimated an unchanged print. Revenue jumped 26% to $163.3 million, compared with the $141.8 million consensus based on projections from the same number of analysts. Revenue in the QNX division, which offers software solutions for a variety of industries, advanced 27% to $80.3 million, boosted by strength in the company's core automotive business, Chief Executive John Giamatteo said in a statement. Vehicle platform company Coretura has chosen Alloy Kore for its next-generation commercial vehicle software platform. Alloy Kore is a jointly developed by Vector and QNX. The design win adds more than $100 million to the QNX royalty backlog, BlackBerry said. RBC Capital Markets expected BlackBerry to top quarterly revenue estimates, saying investor sentiment would depend on the timing of Alloy Kore design wins and momentum around physical artificial intelligence and QNX's general embedded market. For fiscal 2027, BlackBerry anticipates QNX revenue between $315 million and $325 million, up from its previous outlook of $295 million to $312 million. "The increased outlook reflects the strength and trajectory we continue to see across the (QNX) business, while maintaining an appropriate level of flexibility for normal quarter to quarter variability," Chief Financial Officer Tim Foote said during an earnings call, according to a FactSet transcript. The secure communications segment reported revenue of $60.9 million in the second quarter, representing an annual gain of 2%. Recent geopolitical developments, including trade tensions between the US and Canada, are further complicating a dynamic backdrop for secure communications, which has a "substantial footprint" with the US federal government, Foote told analysts. The US is banning imports of certain Canadian goods, including dairy products and motor vehicles. In late August, Canada announced retaliatory tariffs on about US$20 billion of American goods. "While we haven't yet seen anything material arising from this issue, nor have we seen a slowdown in pipeline generation outside of North America, we consider it appropriate to be cautious as we head into the second half," Foote said on the call. For the ongoing three-month period, BlackBerry forecasts total revenue of $143 million to $154 million. Four analysts surveyed by FactSet are looking for $147.6 million. Adjusted EPS is set to come in at $0.04 to $0.05, compared with the $0.05 analyst view. Earlier in September, cybersecurity company Palo Alto Networks (PANW) reported fiscal fourth-quarter results above market expectations. Last month, CrowdStrike (CRWD) raised its full-year net new annual recurring revenue outlook amid increasing demand for cybersecurity solutions to address AI risks. Price: 8.14, Change: -0.24, Percent Change: -2.86