BlackBerry raises fiscal 2027 outlook after Q2 revenue gains 26%

Motley Fool

BlackBerry raised its fiscal 2027 outlook after second-quarter revenue rose 26% year over year to $163 million and adjusted EBITDA reached $47 million. It now expects full-year revenue of $616 million-$636 million and adjusted EBITDA of $141 million-$158 million.

QNX generated record quarterly revenue of $80 million, up 27% year over year. Its first Alloy Core design win was with Cortica, a commercial-vehicle software joint venture between Volvo Group and Daimler Truck. BlackBerry estimates more than $100 million in future royalties from the win and said its value per instance is about three times the customer’s current QNX operating-system deployment. Most royalties will follow production, so BlackBerry does not expect the win to materially affect revenue this fiscal year.

Secure Communications revenue was $61 million, up 2% year over year. BlackBerry forecast full-year segment revenue of $260 million-$270 million and adjusted EBITDA of $50 million-$58 million, citing uncertainty over government-deal timing amid geopolitical developments, including U.S.-Canada trade tensions. Management said it had seen no material impact or slowdown in pipeline generation outside North America. Licensing revenue was $22 million, primarily due to a new deal; BlackBerry expects it to return to about $6 million per quarter in Q3 and Q4.

#BlackBerry-Q2-2027-earnings #BlackBerry-fiscal-2027-outlook #QNX-Alloy-Core-design-win
Share