BlackBerry Limited reported third‑quarter fiscal 2026 results that surpassed expectations, with revenue of $141.8 million and adjusted earnings of $0.05 per share—$0.05 above the consensus estimate of $0.04 and $6.2 million above the $135.6 million revenue forecast. The company’s embedded‑software platform, QNX, generated $68.7 million, a 10% year‑over‑year increase that reflects strong demand from automotive and industrial customers. Secure Communications, the company’s cybersecurity arm, posted $67.0 million in revenue, up from $59.9 million reported in the prior quarter and beating the $66.0 million consensus estimate, driven by continued government and enterprise contracts.
Operating cash flow rose to $17.9 million, a sharp improvement from the $2.6 million reported in the previous quarter, underscoring the company’s growing cash‑generating capacity. Cash and investments at quarter‑end totaled $377.5 million, up from $363 million, giving BlackBerry a solid liquidity position with no debt. The company’s adjusted gross margin held steady at 78%, supported by a favorable mix of high‑margin QNX revenue and disciplined cost management, while operating expenses increased 7% year‑over‑year, reflecting strategic investments in product development and sales expansion.
Management raised fiscal 2026 revenue guidance to $531 million–$541 million, an increase of $10 million from the prior range of $521 million–$531 million, and lifted adjusted EPS guidance to $0.14–$0.16 per share, up from $0.12–$0.14. The upward revision signals confidence in sustained demand for the company’s software platforms and a belief that cost‑control initiatives will continue to support margin expansion. The company also reaffirmed its full‑year operating cash‑flow target of $20 million, reflecting the momentum in cash generation.
CEO John Giamatteo said the quarter “demonstrated the strength of our software‑centric strategy and the resilience of our core businesses.” He highlighted QNX’s record revenue and the company’s ability to maintain profitability while investing in new product lines. CFO Tim Foote noted that “adjusted gross margins remained flat at 78% and operating cash flow surged, underscoring the effectiveness of our cost‑control program and the scalability of our high‑margin software solutions.”
Investors reacted positively to the earnings beat and guidance hike. Analysts pointed to the robust QNX performance, the upside in Secure Communications revenue, and the company’s improving cash‑flow profile as key drivers of the favorable market response. The consensus view is that BlackBerry’s transformation into a software‑centric business is gaining traction, and the raised guidance reflects management’s confidence in continued growth and margin expansion.
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