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BlackBerry Beats Q2 Estimates but Issues Guidance That Pulls Shares Down

Strong results driven by its QNX automotive software highlight revenue momentum while mixed forward targets raised investor doubts about near-term profit growth.

Overview

  • BlackBerry reported adjusted Q2 earnings of $0.07 per share and revenue of $163.3 million, both above analyst forecasts, with adjusted EBITDA of $47.0 million far exceeding the $28.1 million estimate.
  • Revenue rose 26% year over year and management said growth was driven largely by wider adoption of QNX, the company’s automotive operating system that is embedded in about 275 million vehicles.
  • The company guided to roughly $149 million in Q3 revenue and $33 million in Q3 earnings and set full-year FY27 targets near $626 million in revenue and $150 million in earnings, guidance that the market read as mixed.
  • Shares fell about 4% after the outlook was released despite the quarter’s beats, with the stock remaining up strongly year to date amid heavy retail interest and past short-squeeze dynamics.
  • Analyst coverage is limited to seven firms that collectively rate the stock a Moderate Buy with an average price target near $10.47, and BlackBerry’s decade-long shift from handsets to software leaves growth tied to auto and IoT adoption and to short-term sentiment.