BlackBerry Limited reported a strong second-quarter fiscal 2027 performance, with total revenue climbing 26% year-over-year to $163 million—beating high-end guidance. Adjusted EBITDA expanded 29% to $47 million, marking nearly double the prior-year level, while GAAP net income reached $34 million, the highest quarterly result since Q4 FY22. Operating cash flow hit $29 million, the strongest second-quarter figure in five years, and free cash flow stood at $28 million. Adjusted basic EPS rose to $0.07, surpassing the $0.04 analyst consensus by 75%.
The company’s QNX segment, a core driver of growth, posted revenue of $80 million, a 27% year-over-year increase, with an adjusted gross margin of 87%. Notably, design-win value for the first half of fiscal 2027 already exceeded any prior full fiscal year. Meanwhile, the licensing segment saw revenue jump 235% year-over-year to $22 million, with an adjusted EBITDA of $20 million and a 90% margin. The Secure Communications segment contributed $61 million in revenue, a 2% increase, with an adjusted EBITDA of $8 million and a 13% margin.
A key strategic milestone was the selection of BlackBerry’s Alloy Kore platform by Coretura, a joint venture between Volvo Group and Daimler Truck, for its next-generation software-defined commercial vehicles. This represents the largest design win in QNX history. The company also raised full-year fiscal 2027 guidance for total revenue to $616–$636 million, adjusted EBITDA to $141–$158 million, and adjusted basic EPS to $0.19–$0.22. QNX revenue guidance was lifted to $315–$325 million, while Secure Communications revenue was trimmed to $260–$270 million.
The Q3 guidance for fiscal 2027 includes revenue of $143–$154 million, adjusted EBITDA of $28–$37 million, and adjusted basic EPS of $0.04–$0.05. BlackBerry’s cash and investments totaled $447 million, with a net cash position of $247 million. The QNX royalty backlog stood at $950 million as of Q4 FY26. The company’s stock dipped 0.84% pre-market to $8.31, following a 159% surge over the past six months and a 121% year-to-date gain, within a 52-week range of $3.12 to $13.59.
The automotive software market is shifting toward distributed architectures, with S&P Global projecting a decline in global light passenger vehicle adoption from 69% in 2024 to 26% by 2030. Domain-centralized and vehicle-centralized approaches are expected to grow from 31% to 74% over the same period, aligning with BlackBerry’s strategic focus on QNX’s expanding role in vehicle software ecosystems.
