BlackBerry (BB) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 187.9
• Beta (1Y): 1.07
• Revenue Growth: -9.05%
• EPS Growth: N/A
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.07
• Shares Outstanding: 590,147,500
• 10 Day Avg. Volume: 1,510,609
• 30 Day Avg. Volume: 2,053,843
• PEG Ratio: 0.86
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 5.21
• P/FCF Ratio: 435.45
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 29.92
• 1Y Price Target: $6.89
• Price Target Upside: 48.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$5.00 ▲(7.76% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is driven primarily by improving financial performance (better TTM profitability/cash flow and a strong, low-debt balance sheet) and a constructive earnings call with raised guidance. These positives are tempered by weak technicals (below key moving averages with negative MACD) and a demanding valuation (very high P/E with no dividend yield provided).

Positive Factors

Balance sheet strength

BlackBerry's very low leverage provides durable financial flexibility. A conservative balance sheet supports continued R&D, product certification efforts and selective M&A without forcing dilutive financing, improving resilience to cyclical revenue swings over several quarters.

Improving cash generation

Material improvement in operating and free cash flow, and strong FCF growth, enhance the firm's ability to fund recurring-subscription sales, support product development like QNX, and sustain investments or buybacks from internal cash over the next few quarters.

QNX product traction

All-time high QNX revenue demonstrates durable demand in automotive and embedded markets. Record royalties and design wins suggest recurring licensing streams and deeper OEM integrations that can sustain revenue and margins over multiple design and production cycles.

Negative Factors

Revenue volatility

Reported revenue trends have been inconsistent, including negative reported growth, which weakens visibility into recurring revenue durability. Cyclical end-markets like automotive and lumpy government contracts can produce uneven top-line performance over several quarters.

Thin profitability

Although profitability has improved, net margins remain slim and the firm previously reported meaningful annual losses. Thin margins leave limited buffer against cost or revenue shocks and mean sustained execution is required to make profits reliably durable.

Segment and margin pressure

Business mix shows uneven performance: Secure Communications saw YoY weakness and QNX experienced a gross-margin decline. Such segment volatility and margin erosion risk reducing cash flow predictability and limit consistent margin expansion over the medium term.

BlackBerry Business Overview & Revenue Model

Company Description

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers BlackBerry Cyber Suite, which provides Cylance AI and machine learning-based cybersecurity solutions, including BlackBerry Protect, an EPP and available MTD solution; BlackBerry Optics, an EDR solution that provides visibility into and prevention of malicious activity; BlackBerry Guard, a managed detection and response solution; BlackBerry Gateway, an AI-empowered ZTNA solution; and BlackBerry Persona, a UEBA solution that provides authentication by validating user identity in real time. It also provides BlackBerry Spark Unified Endpoint Management Suite, such as BlackBerry UEM, a central software component of its secure communications platform; BlackBerry Dynamics that provides a development platform and secure container for mobile applications; BlackBerry AtHoc and BlackBerry Alert secure and networked critical event management solutions; and SecuSUITE for Government, a multi-OS voice and text messaging solution, as well as BBM Enterprise, an enterprise-grade secure instant messaging solution. In addition, the company offers BlackBerry QNX, which provides Neutrino operating system and BlackBerry QNX CAR platform, and other products; BlackBerry QNX, an embedded system solution; BlackBerry Jarvis, a cloud-based binary static application security testing platform; BlackBerry Certicom cryptography and management products, and BlackBerry Radar asset monitoring solution; and BlackBerry IVY, an intelligent vehicle data platform, as well as enterprise and cybersecurity consulting services. Further, it is involved in the patent licensing and legacy service access fees business. As of February 28, 2022, it owned approximately 38,000 worldwide patents and applications. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.

How the Company Makes Money

BlackBerry generates revenue through several key streams, primarily focused on software and services. The company earns money from its cybersecurity solutions, which include endpoint security, threat detection, and incident response services. Additionally, BlackBerry's QNX operating system is widely used in automotive and industrial applications, contributing to licensing revenue. The company also engages in subscription-based models for its software products, providing recurring revenue. Strategic partnerships with organizations in the automotive and IoT sectors enhance its market reach and revenue potential. Furthermore, BlackBerry has been involved in joint ventures and collaborations, particularly in secure communications, which also aid in boosting its earnings.

BlackBerry Financial Statement Overview

Summary

Turnaround profile supported by improved TTM profitability and materially better cash generation, plus a notably low-leverage balance sheet. The main constraint is earnings quality/consistency: margins are still thin and the prior annual periods were meaningfully loss-making, so durability remains to be proven.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear profitability inflection: revenue grew ~10.2% and the company returned to positive net income with strong gross margins (~75%). However, profitability is still thin (net margin ~4.1%), and the prior two annual periods (FY2025 and FY2024) were meaningfully loss-making with mixed revenue momentum, highlighting that earnings durability is not yet fully proven.

Balance Sheet

The balance sheet looks conservatively positioned in TTM (Trailing-Twelve-Months): low debt (~$303M) versus equity (~$1.03B) and a very low debt-to-equity ratio (~0.03), providing financial flexibility. The main weakness is modest shareholder returns (ROE ~3.0% in TTM), which suggests the company is still early in rebuilding consistent profitability despite the stronger capital structure.

Cash Flow

Cash generation improved materially in TTM (Trailing-Twelve-Months), with positive operating cash flow (~$52.8M) and solid free cash flow (~$51.4M), alongside strong free-cash-flow growth (~82%). Offsetting this, cash conversion remains a watch item: operating cash flow is relatively small versus revenue, and free cash flow is slightly below net income (free cash flow to net income ~0.86), while recent annual history included periods of negative operating and free cash flow.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	536.79M	534.90M	759.10M	526.30M	718.00M	893.00M
Gross Profit	400.14M	394.90M	490.70M	366.60M	467.00M	643.00M
EBITDA	57.87M	59.20M	93.90M	-90.70M	-38.00M	100.00M
Net Income	21.88M	-79.00M	-130.20M	-734.40M	12.00M	-1.10B
Balance Sheet
Total Assets	1.22B	1.30B	1.40B	1.68B	2.57B	2.82B
Cash, Cash Equivalents and Short-Term Investments	303.53M	337.80M	237.00M	426.00M	712.00M	739.00M
Total Debt	216.92M	239.00M	252.00M	419.00M	601.00M	843.00M
Total Liabilities	476.25M	572.96M	619.00M	822.00M	1.01B	1.31B
Stockholders Equity	739.46M	716.47M	776.00M	857.00M	1.56B	1.50B
Cash Flow
Free Cash Flow	43.20M	6.40M	-23.86M	-304.00M	-67.00M	38.00M
Operating Cash Flow	45.70M	16.50M	-3.00M	-263.00M	-28.00M	82.00M
Investing Cash Flow	70.38M	60.70M	46.00M	176.00M	207.00M	-65.00M
Financing Cash Flow	-31.40M	3.10M	-165.00M	6.00M	10.00M	-227.00M

BlackBerry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BB, the sentiment is Negative. The current price of 4.64 is below the 20-day moving average (MA) of 4.79, below the 50-day MA of 5.21, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 31.35 is Neutral, neither overbought nor oversold. The STOCH value of 32.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BB.

BlackBerry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BB	65 Neutral	$2.74B	187.85	2.88%	―	-9.05%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STC	59 Neutral	C$211.26M	-27.25	-2.18%	―	-4.34%	31.52%
CVO	54 Neutral	C$541.69M	-11.98	-18.09%	―	12.20%	-8.46%
NBVA	47 Neutral	C$12.63M	-13.43	-24.65%	―	-69.94%	-281.40%
PLUR	45 Neutral	C$13.38M	-1.35	―	―	17.18%	79.56%
ICS	44 Neutral	C$88.38M	-24.29	―	―	―	―

BlackBerry Corporate Events

BlackBerry Posts Record QNX Revenue and Extends Profit Streak in Q3 FY2026

BlackBerry reported stronger-than-expected results for the third quarter of fiscal 2026, with revenue of $141.8 million, improved GAAP profitability for the seventh straight quarter and a third consecutive quarter of positive net income. The QNX division delivered its highest quarterly revenue on record at $68.7 million, reflecting deeper penetration into automotive and adjacent markets, while Secure Communications outperformed guidance with $67.0 million in revenue, higher adjusted EBITDA and growing annual recurring revenue. Overall adjusted EBITDA reached $28.7 million, operating cash flow turned positive at $17.9 million, and the company boosted its cash and investments balance to $378 million while returning $5 million to shareholders via buybacks. Operationally, BlackBerry strengthened its QNX leadership by appointing John Wall as president, highlighted that its embedded technology now powers more than 275 million vehicles, expanded its SecuSUITE secure communications offering to Windows devices, and deepened its presence in Malaysia through cybersecurity partnerships and expanded deployment of its secure communications software. The company also issued guidance for the fourth quarter and full fiscal year 2026 that points to continued profitability and steady growth in its QNX and Secure Communications segments, underscoring its strategic shift toward high-margin software and security platforms.

The most recent analyst rating on (TSE:BB) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on BlackBerry stock, see the TSE:BB Stock Forecast page.