BlackBerry Ltd (NYSE:BB) kicked off fiscal 2026 with impressive first-quarter results that surpassed analyst expectations, sparking an 8% gain in premarket trading on Wednesday. The Canadian tech company demonstrated strong momentum across its key business units, notably its QNX automotive software and Secure Communications segments.
The company reported total revenue of $121.7 million, exceeding the upper range of its guidance. Gross margin was robust at 74%, while adjusted EBITDA hit $16.4 million. Notably, BlackBerry posted a GAAP net income of $1.9 million for the quarter — its first GAAP profit since Q4 FY22 — with adjusted earnings per share coming in at $0.02, beating forecasts.
QNX, BlackBerry’s embedded software platform widely used in the automotive industry, generated $57.5 million in revenue, marking an 8% increase compared to last year. The segment’s adjusted EBITDA stood at $12.7 million, accounting for 22% of revenue, signaling sustained demand in automotive tech.
Meanwhile, the Secure Communications division also outperformed expectations, reporting $59.5 million in revenue and $9.6 million in adjusted EBITDA. The unit’s adjusted gross margin rose to 70%, a sequential improvement of six percentage points and up four points year-over-year.
Analysts at Phillip Securities credited the surge in cybersecurity threats and cyberattacks as key drivers encouraging companies to ramp up spending on security solutions—an area where BlackBerry is well positioned.
“Cybersecurity continues to be a resilient sector, largely unaffected by broader economic swings, and remains a priority investment area for many organizations,” the analysts commented.
CEO John J. Giamatteo emphasized the strong execution across the company’s divisions and highlighted BlackBerry’s ongoing path toward consistent profitability and disciplined capital management. “We’ve built a solid foundation over the past year, and this quarter’s results reflect our progress,” he said. “With a strong balance sheet and clear focus on cash flow, we repurchased $10 million of shares this quarter as part of our capital allocation strategy.”
During the quarter, BlackBerry bought back 2.57 million common shares under its ongoing normal course issuer bid program. The company ended the quarter with $381.9 million in cash and investments, down $28.4 million sequentially due to operational investments and seasonal cash flow patterns.
Looking forward, BlackBerry raised its full-year guidance, now expecting revenues between $508 million and $538 million, adjusted EBITDA in the range of $72 million to $87 million, and non-GAAP earnings per share between $0.08 and $0.10.
For Q2, the company projects revenue between $115 million and $125 million and adjusted EBITDA from $8 million to $14 million, reinforcing confidence in its turnaround plan.