Blackberry (TSE:BB)
NYSE:BB
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BlackBerry
(NYSE:BB)
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Rating:69Neutral
Price Target:
C$5.50
▲(3.77% Upside)
Action:DowngradedDate:04/10/26
The score is driven primarily by improving fundamentals (return to profitability, lower debt, and positive free cash flow) and a supportive earnings outlook with solid FY2027 guidance and strong QNX backlog. This is tempered by a rich valuation (P/E ~43) and technicals that are improving but not yet in a clear long-term uptrend (below the 200D, near-overbought momentum).
Positive Factors
QNX margins & profitability
QNX's very high gross margins and strong adjusted EBITDA demonstrate a structurally scalable, high‑ASP embedded software franchise. Durable margin profile supports operating leverage, recurrent cash conversion and reinvestment capacity, making future growth more value‑accretive even if top‑line swings.
Negative Factors
Modest consolidated revenue growth
Company‑level growth remains modest and concentrated in parts of the business, limiting the durability of the turnaround. Slow consolidated revenue traction constrains free cash flow expansion and makes margin gains contingent on continued execution in select segments rather than broad‑based demand.
Read all positive and negative factors
Positive Factors
Negative Factors
QNX margins & profitability
QNX's very high gross margins and strong adjusted EBITDA demonstrate a structurally scalable, high‑ASP embedded software franchise. Durable margin profile supports operating leverage, recurrent cash conversion and reinvestment capacity, making future growth more value‑accretive even if top‑line swings.
Read all positive factors
BlackBerry (BB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.12B
Dividend YieldN/A
Average Volume (3M)1.88M
Price to Earnings (P/E)37.1
Beta (1Y)1.08
Revenue Growth-9.05%
EPS GrowthN/A
CountryCA
Employees1,820
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.08
Shares Outstanding587,882,400
10 Day Avg. Volume2,257,904
30 Day Avg. Volume1,880,447
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$6.88Price Target Upside29.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.24
Revenue Forecast (FY)C$797.33M
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, w...
How the Company Makes Money
BlackBerry makes money primarily by licensing software and selling subscription-based cybersecurity services.
1) Cybersecurity software and services (subscription and recurring revenue): A significant portion of BlackBerry’s revenue comes from it...
BlackBerry Earnings Call Summary
Earnings Call Date:Apr 09, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operating and financial wins — record QNX revenue with high margins and EBITDA, a growing ~$950M backlog, accelerating Secure Communications momentum and healthy cash generation. Management provided constructive FY2027 guidance and articulated sizable growth levers (Alloy Core, non-auto/physical AI, gov't digital sovereignty). The main negatives were concentrated: modest full-year consolidated revenue growth (3%), UEM remains challenged with DBNRR under 100%, some licensing variability, and planned near-term investments that will temper margin expansion. On balance, the positive operational momentum, backlog strength, improving margins and cash generation materially outweigh the contained challenges.Positive Updates
QNX Record Quarter and Strong Profitability
QNX delivered a record quarter with revenue of $78.7M (up 20% YoY), Q4 gross margin of 84% (up 1 pp), and adjusted EBITDA of $21.4M (27% of revenue). For the full fiscal year QNX grew 14% and generated $71M of adjusted EBITDA, making QNX a Rule of 40 business for both the quarter and the year.
Negative Updates
Modest Full-Year Revenue Growth
Total company revenue grew only 3% year-over-year for fiscal 2026 despite a strong Q4, indicating the recovery is concentrated in parts of the business and seasonality is significant.
Read all updates
Q4-2026 Updates
Positive
Negative
QNX Record Quarter and Strong Profitability
QNX delivered a record quarter with revenue of $78.7M (up 20% YoY), Q4 gross margin of 84% (up 1 pp), and adjusted EBITDA of $21.4M (27% of revenue). For the full fiscal year QNX grew 14% and generated $71M of adjusted EBITDA, making QNX a Rule of 40 business for both the quarter and the year.
Read all positive updates
Company Guidance
The company guided to a Q1 cadence that reflects QNX seasonality and an overall acceleration for fiscal 2027: QNX Q1 revenue $60–64M and full‑year revenue $290–307M (top of range ≈15% growth) with QNX adjusted EBITDA $69–81M and the business expected to remain a Rule‑of‑40 company; Secure Communications Q1 revenue $66–70M and full‑year revenue $270–280M (≈4–8% growth) with adjusted EBITDA $57–65M; Licensing run rate roughly $6M revenue and ~$5M adjusted EBITDA per quarter; consolidated guidance of $584–611M total revenue (+6–11%), $110–130M adjusted EBITDA and non‑GAAP EPS $0.15–0.19 (excludes impact of any future buybacks); cash flow guidance shows Q1 operating cash flow breakeven to $10M and full‑year operating cash flow of ~ $100M (nearly double year‑over‑year).BlackBerry Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 558.13M | 534.90M | 759.10M | 526.30M | 718.00M |
| Gross Profit | 413.49M | 394.90M | 490.70M | 366.60M | 467.00M |
| EBITDA | 67.19M | 59.20M | 93.90M | -90.70M | -38.00M |
| Net Income | 54.07M | -79.00M | -130.20M | -734.40M | 12.00M |
Balance Sheet | |||||
| Total Assets | 1.24B | 1.30B | 1.40B | 1.68B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 359.58M | 337.80M | 237.00M | 426.00M | 712.00M |
| Total Debt | 18.78M | 239.00M | 252.00M | 419.00M | 601.00M |
| Total Liabilities | 498.76M | 572.96M | 619.00M | 822.00M | 1.01B |
| Stockholders Equity | 745.34M | 716.47M | 776.00M | 857.00M | 1.56B |
Cash Flow | |||||
| Free Cash Flow | 47.26M | 6.40M | -23.86M | -304.00M | -67.00M |
| Operating Cash Flow | 51.13M | 16.50M | -3.00M | -263.00M | -28.00M |
| Investing Cash Flow | 15.86M | 60.70M | 46.00M | 176.00M | 207.00M |
| Financing Cash Flow | -59.16M | 3.10M | -165.00M | 6.00M | 10.00M |
BlackBerry Technical Analysis
Positive
5.30
Price Trends
4.69
Positive
5.14
Positive
5.49
Negative
Market Momentum
0.11
Negative
70.45
Negative
75.84
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 5.3 is above the 20-day moving average (MA) of 4.66, above the 50-day MA of 4.69, and below the 200-day MA of 5.49, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 70.45 is Negative, neither overbought nor oversold. The STOCH value of 75.84 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | C$3.12B | 37.14 | 9.75% | ― | -9.05% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | C$171.73M | -28.58 | -2.82% | ― | -4.34% | 31.52% | |
53 Neutral | C$393.84M | -16.02 | -28.39% | ― | 12.20% | -8.46% | |
45 Neutral | C$8.42M | -16.31 | -21.69% | ― | -69.94% | -281.40% | |
45 Neutral | C$10.23M | -3.84 | 286.87% | ― | 17.18% | 79.56% | |
43 Neutral | C$43.07M | -10.77 | 247.94% | ― | ― | ― |
* Technology Sector Average
TSE:BB
BlackBerry
5.30
0.84
18.83%
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BlackBerry Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
BlackBerry Returns to Growth on Record QNX Results and Strong Secure Communications Demand
Positive
Apr 9, 2026
BlackBerry reported a return to top-line growth in its fourth quarter and full fiscal year 2026, with quarterly revenue up 10% year over year to $156 million and full-year revenue rising 3% to $549.1 million. The company has now logged eight conse...
Business Operations and StrategyStock BuybackFinancial Disclosures
Roots Returns to Profit and Lifts Margins as Strategic Review Advances
Positive
Apr 9, 2026
Roots reported a solid finish to fiscal 2025, with fourth-quarter sales up 4.2% to $115.5 million and direct-to-consumer revenue rising 5.7%, supported by higher gross margins and a sharp swing to net income from a loss a year earlier. For the ful...
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.