BlackBerry Ltd. (NYSE:BB) stock fell more than 11% Thursday as investors locked in profits following a massive rally driven by strong quarterly earnings.
The company reported fiscal first-quarter 2027 results that beat Wall Street expectations, initially sending shares up nearly 20% to close at $10.32 on June 25. The stock extended those gains in subsequent sessions as several analysts raised their price forecasts.
Financial Performance Exceeds Estimates
BlackBerry reported first-quarter revenue of $152.9 million, marking a 26% year-over-year increase. This total beat the consensus estimate of $138.19 million. Adjusted EPS came in at 4 cents versus the Street estimate of 3 cents, and adjusted EBITDA reached $36.3 million.
Following the earnings, RBC Capital Markets analyst Paul Treiber maintained a Sector Perform rating and raised the price forecast from $4.50 to $9. Treiber highlighted that BlackBerry traded at 9.6 times next-twelve-month EV/sales, positioning the company near the top of its five-year range and at a 112% premium to its auto-tech peers.
Core Business Segments Segment Growth
The QNX division led the quarterly upside, with revenue rising 26% year-over-year to $72.3 million. During the earnings call, management reported that development license revenue reached its highest level in eight quarters.
The Secure Communications business also sustained steady momentum, driven by government demand for cybersecurity modernization and digital sovereignty.
Critical Support and Resistance Levels for BB Stock
From a trend perspective, BB is still in a strong longer-term uptrend: it’s trading 14% above the 20-day SMA ($9.90) and 125.1% above the 200-day SMA ($5.01), which tells you the bigger move over recent months remains higher despite today’s pullback. The golden cross in May (50-day SMA moving above the 200-day SMA) also supports the idea that the primary trend has been bullish.
- Key Resistance: $13.59 — the 52-week high zone that marks the prior breakout ceiling
- Key Support: $9.90 — the 20-day SMA area that often acts as the first trend support during pullbacks
Analyst Outlook
The stock trades at about 128 times earnings. Analysts currently have a consensus Buy rating with an average price forecast of $11.07. Recent analyst actions include:
- RBC Capital Markets maintained a Sector Perform rating and raised its price forecast to $9 on June 29.
- CIBC maintained an Outperformer rating and raised its price forecast to $13 on June 26.
- Canaccord Genuity maintained a Hold rating and raised its price forecast to $10.30 on June 26.
BB Stock Price Activity: BlackBerry shares were down 11.47% at $11.34 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
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