BlackBerry (BB) shares surged more than 20% on Thursday after the company reported fiscal first-quarter 2027 results that exceeded its own guidance and raised its full-year revenue forecast. The Toronto-listed stock climbed to around $9.72 in early trading, nearing its 52-week high of $10.93, while U.S.-listed shares moved roughly in line.
Total revenue for Q1 came in at $152.9 million, up 26% year-over-year and above the high end of guidance. Adjusted EBITDA more than doubled to $36.3 million, representing a 24% margin. The company also delivered its fifth straight quarter of GAAP net income and generated operating cash flow of $4.6 million — the first positive fiscal Q1 in nine years, excluding a one-time patent sale in 2024.
The strong performance was driven by its two core segments. QNX revenue rose 26% to $72.3 million, with an 86% gross margin and a backlog of nearly $1 billion in future royalties. Development license revenue hit its highest level in eight quarters. Secure Communications grew 24% to $73.6 million, with 80% recurring revenue and a 5% increase in annual recurring revenue to $220 million. CEO John Giamatteo highlighted healthy demand, particularly in software-defined vehicles and emerging physical AI opportunities, noting NVIDIA’s standardization on QNX.
For full-year fiscal 2027, BlackBerry raised revenue guidance to $594M–$621M, up from $584M–$611M, with adjusted EBITDA of $119M–$141M. QNX full-year guidance was raised to $295M–$312M. The company ended the quarter with $423 million in cash and investments and net cash of roughly $223 million after debt. Since May 2025, BlackBerry has bought back about $70 million in stock at an average price of $3.85 per share. Second-quarter guidance calls for revenue of $137M–$148M and adjusted EBITDA of $20M–$30M.
