BlackBerry Ltd raised its annual revenue forecast on Thursday, powered by growth in its QNX software business, as the company signaled a turnaround era. The Canadian technology company reported better-than-expected quarterly results, with QNX licensing revenue surging 30% year-over-year.
QNX Drives Growth
QNX, an operating system used in cars and industrial systems, has become a key growth driver for BlackBerry. The unit's revenue jumped to $52 million in the fiscal first quarter, up from $40 million a year earlier. 'The QNX business is firing on all cylinders,' said Carmi Levy, a technology analyst and journalist, in an interview with BNN Bloomberg. 'This is a clear sign that BlackBerry's bet on software is paying off.'
Financial Outlook
BlackBerry now expects fiscal 2027 revenue of $620 million to $650 million, up from its prior forecast of $590 million to $620 million. The company also narrowed its adjusted earnings per share outlook to a loss of $0.05 to breakeven, compared with a loss of $0.10 to $0.05 previously. 'Every dollar counts as we focus on profitability,' said CEO John Giamatteo.
Market Reaction
Shares of BlackBerry rose 8% in extended trading following the announcement. The stock has gained 22% this year, outperforming the broader market. Analysts attribute the rally to growing confidence in BlackBerry's transformation from a smartphone maker to a software and services company.
