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BlackBerry
(NYSE:BB)
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Rating:66Neutral
Price Target:
C$12.00
▼(-0.33% Downside)
Action:Downgraded
Date:07/30/26
The score is primarily supported by improving fundamentals (return to profitability, very high gross margins, and positive TTM free cash flow) and a strong earnings update with raised guidance. Offsetting this, technicals are weak in the near term (below 20/50-day averages) and valuation is stretched (P/E ~79.9), while retention/churn and deal lumpiness add execution and volatility risk.
Positive Factors
High gross margins and profitability improvement
Sustained gross margins near the mid-70s indicate durable software pricing power and high incremental margins on revenue. Coupled with the shift to GAAP profitability in FY2026, this supports long-term earnings conversion from revenue growth and cushions investment in product and go-to-market initiatives.
Negative Factors
Revenue volatility from lumpy government contracts
Dependence on a few large, timing-sensitive government awards makes top-line less predictable and increases execution risk. Even with overall growth, outsized one-off bookings can mask underlying organic momentum and complicate capacity planning and investor visibility over multi-quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and profitability improvement
Sustained gross margins near the mid-70s indicate durable software pricing power and high incremental margins on revenue. Coupled with the shift to GAAP profitability in FY2026, this supports long-term earnings conversion from revenue growth and cushions investment in product and go-to-market initiatives.
Read all positive factors
BlackBerry (BB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$6.99B
Dividend YieldN/A
Average Volume (3M)6.01M
Price to Earnings (P/E)84.0
Beta (1Y)1.28
Revenue Growth4.05%
EPS GrowthN/A
CountryCA
Employees1,749
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.10
Shares Outstanding586,100,400
10 Day Avg. Volume6,700,233
30 Day Avg. Volume6,011,126
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)2.69
Price to Sales (P/S)3.60
P/FCF Ratio42.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$14.47Price Target Upside20.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.27
Revenue Forecast (FY)C$875.06M
BlackBerry Business Overview & Revenue Model
Company Description
BlackBerry Limited, founded in 1984 and headquartered in Waterloo, Canada, specializes in delivering cutting-edge security software and services to businesses and governmental entities worldwide. The company’s activities are structured into three ...
How the Company Makes Money
BlackBerry makes money mainly by licensing software and selling subscriptions and services across its two operating segments. (1) IoT / Embedded software: A major revenue driver is the licensing of BlackBerry QNX, an embedded real-time operating s...
BlackBerry Earnings Call Summary
Earnings Call Date:Jun 25, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 24, 2026
Earnings Call Sentiment Positive
The call presented a strong quarter with multiple positive operational and financial indicators: revenue and adjusted EBITDA materially beat guidance, margins expanded, QNX and Secure Communications both delivered double-digit growth and Rule of 40 performance, ARR increased, cash generation improved, and the company raised full-year guidance. Key growth initiatives (GEM, physical AI, Alloy Kore) show encouraging pipeline and design-win momentum. Offsetting risks include a DBNRR below 100%, some remaining churn, reliance on lumpy large government deals that introduce quarter-to-quarter volatility, and Alloy Kore execution/timing risk. Overall, positive operational momentum and upgraded guidance outweigh the near-term risks and execution uncertainties.Positive Updates
Total Revenue Beat and Strong Growth
Total company revenue of $153 million, above the high end of guidance, representing 26% year-over-year growth.
Negative Updates
Dollar-Based Net Retention below 100%
Secure Communications DBNRR was 92%, indicating room for improved retention and upsell to reach management's long-term target closer to 100%.
Read all updates
Q1-2027 Updates
Positive
Negative
Total Revenue Beat and Strong Growth
Total company revenue of $153 million, above the high end of guidance, representing 26% year-over-year growth.
Read all positive updates
Company Guidance
BlackBerry raised its outlook, driving QNX full‑year revenue to $295–$312M with adjusted EBITDA of $74–$86M (Q2 QNX revenue $70–$75M; Q2 adj. EBITDA $16–$21M); Secure Communications was reiterated to grow 4%–8% for the year with Q2 revenue guided to $57–$63M and Q2 adjusted EBITDA $5–$10M; Licensing is now pegged at roughly $29M of full‑year revenue and ~$25M of adj. EBITDA (Q2 licensing ~$10M revenue; ~$9M adj. EBITDA); at the total‑company level management raised full‑year revenue to $594–$621M and adjusted EBITDA to $119–$139M (noting ~90% flow‑through of incremental revenue), and guided Q2 total revenue of $137–$148M, adjusted EBITDA $20–$30M, adjusted basic EPS $0.03–$0.04, and Q2 operating cash flow between breakeven and $10M.BlackBerry Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 580.23M | 558.13M | 534.90M | 759.10M | 526.30M | 718.00M |
| Gross Profit | 440.75M | 413.49M | 394.90M | 490.70M | 366.60M | 467.00M |
| EBITDA | 91.45M | 85.28M | 59.20M | 93.90M | -90.70M | -38.00M |
| Net Income | 59.90M | 54.07M | -79.00M | -130.20M | -734.40M | 12.00M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.24B | 1.30B | 1.40B | 1.68B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 349.73M | 359.58M | 337.80M | 237.00M | 426.00M | 712.00M |
| Total Debt | 220.36M | 224.80M | 239.00M | 252.00M | 419.00M | 601.00M |
| Total Liabilities | 488.36M | 498.76M | 572.96M | 619.00M | 822.00M | 1.01B |
| Stockholders Equity | 748.19M | 745.34M | 716.47M | 776.00M | 857.00M | 1.56B |
Cash Flow | ||||||
| Free Cash Flow | 68.12M | 47.26M | 6.40M | -23.86M | -304.00M | -67.00M |
| Operating Cash Flow | 73.62M | 51.13M | 16.50M | -3.00M | -263.00M | -28.00M |
| Investing Cash Flow | -36.65M | 15.86M | 60.70M | 46.00M | 176.00M | 207.00M |
| Financing Cash Flow | -58.39M | -59.16M | 3.10M | -165.00M | 6.00M | 10.00M |
BlackBerry Technical Analysis
Positive
12.04
Price Trends
13.49
Negative
10.01
Positive
7.76
Positive
Market Momentum
-0.53
Positive
44.51
Neutral
69.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BB, the sentiment is Positive. The current price of 12.04 is below the 20-day moving average (MA) of 13.17, below the 50-day MA of 13.49, and above the 200-day MA of 7.76, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 69.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BB.
BlackBerry Risk Analysis
BlackBerry disclosed 30 risk factors in its most recent earnings report. BlackBerry reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BlackBerry Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$6.99B | 83.99 | 8.10% | ― | 4.05% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | C$422.89M | -15.72 | -19.77% | ― | 9.70% | 11.90% | |
54 Neutral | C$181.37M | -20.01 | -3.18% | ― | -11.32% | 6.86% | |
48 Neutral | C$47.83M | -6.94 | 297.87% | ― | -43.68% | -329.28% | |
47 Neutral | C$10.53M | -13.05 | -19.60% | ― | -27.64% | -2400.00% | |
45 Neutral | C$7.96M | -1.19 | 160.42% | ― | -21.18% | 70.32% |
* Technology Sector Average
TSE:BB
BlackBerry
12.28
7.16
139.84%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.