Prime Highlights
- BlackBerry raised its full-year 2027 revenue forecast after first-quarter revenue rose 26% year-on-year.
- The QNX division revenue surged nearly 26%, backed by a backlog of almost $1 billion in future royalties.
Key Facts
- BlackBerry’s QNX division provides secure real-time operating systems for mission-critical embedded systems, primarily in the automotive sector.
- BlackBerry’s secure communications division, which serves largely government clients, reported a 24% rise in revenue to $73.6 million.
Background
BlackBerry raised its annual revenue forecast after strong first-quarter results, driven by continued momentum in its QNX automotive software division, sending its Toronto-listed shares up around 19%.
The company now expects full-year 2027 revenue of between $594 million and $621 million, up from its earlier projection of $584 million to $611 million. It also raised its annual QNX revenue forecast to $295 million to $312 million, compared to its previous range of $290 million to $307 million.
BlackBerry posted total revenue of $152.9 million for the first quarter ending in the last week of May, up 26% from the same period a year earlier.
The QNX division, which provides secure real-time operating systems for embedded systems primarily in the automotive sector, saw revenue surge nearly 26% to $72.3 million. The division carries a backlog of almost $1 billion in future royalties.
CEO John Giamatteo said more QNX customers are moving towards next-generation software-defined vehicles and working closely with the company to deploy its platform, adding that demand remains healthy.
BlackBerry’s secure communications division, covering encrypted voice, messaging and critical event management solutions, reported a 24% rise in revenue to $73.6 million. CFO Tim Foote noted that a large portion of the secure communications business and its pipeline is government-driven.
Once a dominant force in smartphones, BlackBerry has in recent years pivoted to software for connected devices and autonomous vehicles.
