BlackBerry revenue rises 26% to $163.3 million as company raises annual outlook
Key Facts
BlackBerry reported a 26% year-on-year increase in revenue in quarterly results accompanied by higher revenue and earnings forecasts for the fiscal year. The company said in its earnings release filed with the U.S. Securities and Exchange Commission that revenue reached US$163.3 million. The results cover the second quarter of fiscal 2027 and were announced on September 24, 2026. The reporting period covered the company's operations in the quarter ended August 31, 2026. Growth was supported by higher QNX revenue and a contribution from licensing, which benefited from a new intellectual property licensing agreement the company signed during the period.
QNX revenue totaled $80.3 million in the second quarter, according to BlackBerry's earnings release. The segment posted growth of 27% from the same period of the previous fiscal year, outpacing the company's overall revenue growth. In licensing, BlackBerry reported quarterly revenue of $22.1 million, according to its quarterly report filed with the U.S. regulator. The company attributed the business's performance above its expectations primarily to a "new intellectual property licensing agreement," as stated in the report. It said the agreement was signed during the reported fiscal quarter, adding to the performance of its businesses during the period.
On profitability, adjusted earnings before interest, taxes, depreciation and amortization rose 81% from the corresponding quarter a year earlier, according to the company's release. Those earnings totaled $47.0 million in the second fiscal quarter, growing faster than revenue. According to the same release, BlackBerry posted net income of $33.9 million under generally accepted accounting principles. Adjusted basic earnings per share were $0.07 during the reporting period. The company reported net income among its accounting results, alongside adjusted profitability measures that included earnings per share and earnings before interest, taxes, depreciation and amortization.
On liquidity, BlackBerry generated cash flow from operating activities during the second quarter, according to figures in the earnings release. That cash flow totaled $29.3 million for the fiscal period ended in August, alongside quarterly profits. At quarter-end, its cash and investments stood at $447.1 million, according to the release filed with the U.S. Securities and Exchange Commission. Among recurring business metrics, the company reported annual recurring revenue of $221 million for its Secure Communications segment. That metric reflects the segment's position at the end of the fiscal quarter, while the company reported operating cash flow for operations during the same quarterly period.
The Secure Communications segment recorded quarterly revenue of $60.9 million, according to BlackBerry's quarterly report for the second fiscal quarter. The segment's dollar-based net retention rate stood at 91% at the end of the period, according to the report filed with the U.S. regulator. On guidance, the company lowered its annual outlook for the business while raising its overall financial outlook for the year. BlackBerry linked the reduction in the segment's outlook to taking a "more cautious view" of some government opportunities, as described in the report. The company identified the second half of the fiscal year as the timeframe for those opportunities, which informed its revised estimates for the Secure Communications business.
For fiscal 2027, BlackBerry raised its revenue forecast to a range of $616 million to $636 million, according to its quarterly report. It also raised its forecast for adjusted earnings before interest, taxes, depreciation and amortization to a range of $141 million to $158 million for the same year. The updated overall annual guidance accompanied the disclosure of quarterly results, with revisions moving in different directions for the company's overall business and its Secure Communications segment. For its next financial disclosure, BlackBerry is targeting December 17, 2026, to announce its third-quarter fiscal results, according to its investor relations page. The company lists that date as a tentative planning date for its next earnings announcement.