BlackBerry (TSX:BB) just delivered a surprisingly strong earnings report for Q2 of its fiscal year 2026 (three months ending in August), signaling a potential turning point for the once-struggling tech company. If you haven’t looked at BlackBerry in a while, now might be the time to give it a second glance.
The Canadian enterprise software firm not only posted a solid profit but also beat expectations across several key metrics — from revenue growth and margin expansion to cash flow improvement. And with momentum building in its high-potential segments like automotive software and secure communications, BlackBerry may be positioning itself for a long-term resurgence.
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Earnings Beat and Expanding Margins
In Q2, BlackBerry reported US$129.6 million in revenue, a 3% year-over-year increase that exceeded both its internal forecasts and analyst expectations. Adjusted EBITDA came in at US$25.9 million, or 20% of revenue — comfortably beating guidance and highlighting improving operational efficiency.
Even more encouraging, the company achieved GAAP profitability for the second consecutive quarter, generating US$13.3 million in net income and US$3.4 million in operating cash flow. While many tech firms are still grappling with cost pressures, BlackBerry managed to cut operating expenses while pushing gross margins up to 75% — an impressive feat in the current macro environment.
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QNX and Secure Communications Gaining Traction
BlackBerry’s QNX division, which provides embedded automotive-grade software, delivered 15% revenue growth year over year, outperforming its own projections. The QNX platform is widely used in vehicles, making it a key growth driver as automakers push deeper into autonomous and electric technologies.
Meanwhile, BlackBerry’s secure communications segment also exceeded EBITDA expectations, even though revenue dipped slightly year over year. That said, recurring revenue increased, signaling stronger customer retention and the resilience of its long-term contracts.
Strategic Moves Point to Long-Term Upside
Beyond the numbers, BlackBerry continues to execute on its forward-looking strategy. In August, the company announced that QNX OS for Safety 8 is now integrated into NVIDIA’s DRIVE AGX Thor platform, cementing its role in the evolving autonomous vehicle ecosystem. Developers are turning to QNX to build safe, AI-powered driving systems — a niche where BlackBerry is quickly becoming indispensable.
Just last week, BlackBerry also launched QNX OS for Safety 8.0, a real-time operating system tailored for complex, mission-critical embedded systems. This new version is already being deployed in robotics, aerospace, and medical devices, showcasing its versatility well beyond the automotive space.
These product developments highlight BlackBerry’s pivot toward key tech trends, including machine learning, embedded AI, and secure mobile infrastructure.
Should You Buy BlackBerry Stock Now?
Despite more than doubling in the past year, BlackBerry stock is still trading about 27% below its 52-week high, currently priced around $6.47 per share with a market cap of $3.9 billion. While it might look modest compared to tech giants, that’s part of what makes it compelling — especially for long-term investors seeking undervalued growth.
With a solid balance sheet, growing margins, renewed profitability, and exposure to future-focused industries, BlackBerry is starting to look like a legitimate comeback story. While risks remain, particularly in execution and market competition, this earnings beat suggests there could be more upside ahead.
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