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Canada's BlackBerry Q1 revenue rises 26% on QNX growth

Canada's BlackBerry Q1 revenue rises 26% on QNX growth


Overview

  • Canada enterprise software firm's fiscal Q1 revenue rose 26% yr/yr

  • Company reported first positive operating cash flow for a fiscal Q1 in nine years


Outlook

  • BlackBerry sees Q2 revenue of $137 mln to $148 mln

  • Company expects FY27 revenue of $594 mln to $621 mln

  • BlackBerry forecasts FY27 non-GAAP basic EPS of $0.16 to $0.20


Result Drivers

  • QNX GROWTH - QNX revenue rose 26% yr/yr to $72.3 mln, with segment margin expanding by 5 percentage points, driven by content expansion and new platform launches

  • SECURE COMMUNICATIONS - Secure Communications revenue grew 24% yr/yr to $73.6 mln, with segment margin up 2 percentage points, contributing to overall profitability

  • CASH FLOW IMPROVEMENT - Company reported first positive operating cash flow for a fiscal Q1 in nine years


Company press release: ID:nACS44y2Ja


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Adjusted Net Income

$25.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 20 three months ago


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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