BlackBerry Lifts Outlook, But Analysts Warn Of QNX Deceleration

BlackBerry Limited (NYSE:BB) stock fell on Friday despite a third-quarter earnings and revenue beat, as well as a higher fiscal 2026 outlook.

Investors instead focused on analyst caution around slowing QNX growth, overshadowing stronger profitability and resilient Secure Communications performance.

On Thursday, BlackBerry reported third-quarter revenue of $141.8 million, beating analyst estimates of $137.4 million. The company reported adjusted earnings of 5 cents per share for the quarter, beating estimates of 4 cents per share.

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BlackBerry raised its fiscal 2026 revenue guidance to a range of $531 to $541 million, versus estimates of $531.94 million.

Analysts’ Take

RBC Capital Markets analyst Paul Treiber reiterated the Sector Perform rating on the stock with a price forecast of $4.50.

The analyst said BlackBerry's third-quarter results topped both the firm's and consensus expectations, prompting the company to raise its fiscal 2026 guidance.

However, the beat was primarily driven by one-time revenue in the Secure Communications segment, rather than underlying momentum in QNX.

While QNX revenue rose 10% year over year, it came in slightly below expectations and slowed from the prior quarter's growth rate.

Fourth-quarter guidance also points to a deceleration in QNX's double-stacked year-over-year growth, suggesting a lower growth trajectory despite easier comparisons.

BlackBerry narrowed its fiscal 2026 QNX revenue outlook, and investor visibility into QNX growth has weakened, with a meaningful portion of recent growth tied to Radar rather than core demand.

The analyst maintained a Sector Perform rating, saying BlackBerry shares appear fairly valued relative to their growth outlook.

BB Price Action: BlackBerry shares were down 11.09% at $3.845 at the time of publication on Friday, according to Benzinga Pro data.

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