BlackBerry Raises Revenue Forecast After Record QNX Growth

BlackBerry Limited reported second-quarter revenue of US$163.3 million, exceeding analyst expectations of US$145 million. The company saw net income rise to US$33.9 million, up from US$13.3 million the previous year, marking its sixth consecutive profitable quarter. This growth was primarily driven by the QNX vehicle software unit, which generated a record US$80.3 million, a 27 percent increase year-over-year.

Following these results, the company raised its fiscal 2027 revenue outlook for the second time this year to between US$616 million and US$636 million. The company also secured its largest contract in QNX history through Coretura AB, a joint venture between Daimler Truck and Volvo Group. The deal for the Alloy Kore software platform, developed with Vector Informatik GmbH, is expected to add over US$100 million to the company's royalty backlog.

CEO John J. Giamatteo attributed the performance to a profitable growth model and a strategy focusing on core automotive business, middleware expansion, and physical AI for robotics, medical devices, and industrial automation. While the QNX business expanded, the company lowered its Secure Communications revenue forecast, citing geopolitical uncertainty. BlackBerry is now prioritizing organic investment in QNX while evaluating strategic acquisitions and share buybacks.