Recently, Zacks.com users have been paying close attention to BlackBerry (BB). This makes it worthwhile to examine what the stock has in store.
BlackBerry's strong QNX and Secure Communications growth fuel a 26% revenue jump and higher fiscal 2027 guidance, but execution risks remain.
BlackBerry is rated a speculative Buy, with asymmetric upside potential driven by QNX and the Alloy Kore middleware opportunity. QNX's ~$950m royalty backlog and record development license revenue signal robust forward growth, though much of it is long-dated. Valuation sensitivity centers on QNX; Alloy Kore could multiply revenue from existing customers and expand into non-automotive markets.
BlackBerry stock price has pulled back in the past two weeks in New York and Toronto. It dropped to $8.83 on Monday, down by 35% from its highest point this year.
BlackBerry is undergoing a significant turnaround, driven by robust growth in QNX and Secure Communications businesses. Q1 FY2027 revenues surged 26% YoY to $152.9M, with margin expansion and beats on both top and bottom lines. FY2027 guidance signals accelerating momentum: 11% revenue growth, 20% adjusted EBITDA growth, and 13% adjusted EPS growth at midpoints.
BlackBerry has successfully pivoted from phones to high-growth, high-margin QNX and secure communications segments. BB's QNX automotive software and secure communications divisions both posted 20%+ top-line growth, with the latest quarter delivering the first positive operational cash flow in nine years. Despite strong fundamentals, BB trades at a premium (forward P/S 8.6x, GAAP P/E 78x), demanding sustained double-digit growth amid macro headwinds and intense competition.
BB, NGL, VG, FPS and VIRT have been added to the Zacks Rank #1 (Strong Buy) List on July 15th, 2026.
BB's lower valuation, QNX growth and cybersecurity momentum offer a more compelling risk-reward profile than PANW today.
BlackBerry (BB) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
BB sees QNX's fastest-growing GEM strategy opening new opportunities in robotics and industrial automation as recent customer wins strengthen adoption.
After reporting a strong first-quarter fiscal 2027, BlackBerry Limited BB saw its shares surge roughly 22% as investors rewarded better-than-expected revenue, expanding profitability and improved full-year guidance. BB's shares have gained 265.6% in the past three months compared with the Internet Software industry's rise of 5%.
BlackBerry has emerged as a significant market winner in 2026, with shares more than tripling. Recent Q1 results signaled a positive inflection, with revenue growth and GAAP profits finally materializing after prolonged struggles. The surge in shares has put the valuation at a level that matches tech names that are usually growing their top lines much faster.