BlackBerry Stock Jumps 10% After Strong Earnings Beat

Q1 revenue beats estimates and full-year guidance lifted — here’s what you need to know.

BlackBerry Stock Jumps 10% After Strong Earnings and Higher Revenue Forecast

BlackBerry Limited (NYSE: BB; TSX: BB) saw its stock surge by approximately 10% on June 25, 2025, following the release of its Q1 fiscal 2026 earnings report, which exceeded analyst expectations and included an upward revision of its full-year revenue guidance.

Strong Q1 Performance

BlackBerry reported total revenue of $121.7 million for the quarter, surpassing the consensus estimate of around $112 million. This growth was driven primarily by robust performances in its QNX automotive software and Secure Communications divisions. QNX revenue grew 8% year-over-year to $57.5 million, while Secure Communications contributed $59.5 million, exceeding prior guidance despite a slight year-over-year decline in that segment.

The company also posted GAAP profitability for the first time since Q4 FY22, reporting a net income of $1.9 million and a non-GAAP net income of $12.3 million. Adjusted EBITDA increased 55% year-over-year to $16.4 million, and non-GAAP earnings per share came in at $0.02, beating analyst expectations of a flat EPS.

Raised Revenue Guidance and Share Buybacks

Following the strong quarter, BlackBerry raised its full-year revenue guidance to a range of $508 million to $538 million, up from the previous forecast of $504 million to $534 million. The company expects Q2 revenue between $115 million and $125 million, reflecting confidence in continued growth in both key segments.

Additionally, BlackBerry launched a $100 million share buyback program and returned $10 million to shareholders in the quarter, signaling disciplined capital allocation and confidence in the business outlook.

Expert and Analyst Opinions

Paul Treiber, an analyst at RBC Capital, maintained a Sector Perform rating on BlackBerry but raised his price target from $3.75 to $4. He noted that the first-quarter results surpassed both RBC’s and consensus estimates, driven by stronger-than-expected revenue from Secure Communications and QNX. However, he cautioned that the slightly raised fiscal 2026 guidance remains conservative due to ongoing uncertainties in the automotive sector and broader macroeconomic environment.

Veteran trader Stephen Guilfoyle, who initiated a long position earlier in 2025, acknowledged the strong earnings but advised some caution due to headline risks in the market. He highlighted that while the company beat expectations, some analysts had reduced earnings estimates ahead of the report.

Strategic Progress and Market Position

CEO John Giamatteo emphasized the company’s strong execution and strategic progress, including expanding partnerships in automotive technology and cybersecurity, as well as the growth of the Malaysia Cybersecurity Center of Excellence. These initiatives are expected to drive sustained revenue growth and operational efficiency going forward1.

Summary

• Stock reaction: +10% surge on June 25, 2025

• Q1 revenue: $121.7 million, beating estimates

• QNX revenue: +8% YoY to $57.5 million

• Secure Communications revenue: $59.5 million, above guidance

• GAAP net income: $1.9 million (first profitability since Q4 FY22)

• Non-GAAP EPS: $0.02 vs. $0.00 expected

• Full-year revenue guidance: Raised to $508–$538 million

• Share buyback: $100 million program launched, $10 million returned in Q1

BlackBerry’s strong earnings and raised guidance have renewed investor confidence, positioning the company well for growth in automotive software and cybersecurity markets amid broader market uncertainties.