BlackBerry Limited (NYSE:BB) stock slipped in Friday’s premarket session after surging nearly 20% in the previous session as investors took profits following the cybersecurity company’s upbeat quarterly results and higher full-year guidance.
Q1 Results Beat Expectations
BlackBerry reported fiscal first-quarter revenue of $152.9 million, up 26% from a year earlier and ahead of analyst estimates. Adjusted earnings were 4 cents per share.
Growth was driven by its QNX and Secure Communications businesses, while adjusted EBITDA jumped 144% year over year to $36.3 million.
The company raised its fiscal 2027 outlook, projecting adjusted earnings of 16 cents to 20 cents per share on revenue of $594 million to $621 million.
For the fiscal second quarter, BlackBerry expects revenue of $137 million to $148 million and adjusted earnings of 3 cents to 4 cents per share.
QNX Royalties And Alloy Core Upside
On the earnings call, management said higher-margin QNX royalties are becoming a larger part of the revenue mix, supporting operating leverage and margin expansion.
BlackBerry also said development license revenue reached its highest level in eight quarters, which management described as an early signal of future royalty growth because customers typically buy those tools years before production begins.
Management gave stronger color on Alloy Core, saying the platform could lift average selling prices per vehicle by "hundreds of percent," not just 10% or 20%, as BlackBerry expands beyond operating-system software into broader vehicle platforms.
The company also said Alloy Core may not be limited to new programs, as some existing programs could shift to the platform and potentially lift backlog.
Secure Communications And GEM Pipeline
Secure Communications remained supported by government demand tied to digital sovereignty and cybersecurity modernization.
Management said large government deals take a long time to close and "don’t happen every quarter," so outsized growth and profitability usually give way to more normalized quarters.
The company also said ARR remains useful as a base-level indicator, though large government contracts may drive upside beyond recurring revenue. BlackBerry also highlighted opportunities in robotics, medical instrumentation, and industrial automation.
Management said GEM is growing materially faster than automotive, though from a smaller base, and added it would be "disappointed" if the company did not announce "a couple of big GEM wins" later this year.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $8.68. Recent analyst moves include:
- Canaccord Genuity: Hold (Raises forecast to $8.20) (June 24)
- Stifel: Initiated with Buy (Forecast $12.00) (June 24)
- CIBC: Outperformer (Raises forecast to $10.00) (June 17)
BB Stock Price Today
BB Stock Price Activity: BlackBerry shares were down 2.42% at $10.09 during premarket trading on Friday, according to Benzinga Pro data.
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