BlackBerry returns to profit on QNX software growth
Updated
Updated · The Wall Street Journal · May 2
BlackBerry returns to profit on QNX software growth
13 articles · Updated · The Wall Street Journal · May 2
The company has posted four straight profitable quarters, with QNX generating about half of revenue and running in 275 million vehicles, plus medical devices, industrial automation and robotics.
Shares have risen 50% since last month's bullish earnings call, as executives say the former smartphone maker has become a growth story built on safety-critical software.
BlackBerry pivoted after losing car infotainment ground to Google and others, focusing instead on underlying operating systems for driver-assistance and other high-reliability applications.
Could BlackBerry’s dominance in safety-critical software make it a single point of failure for industries like automotive and healthcare?
With QNX expanding into robotics and physical AI, how might competitors like Linux or Android disrupt its market lead?
In fiscal 2026, BlackBerry achieved sustainable profitability with total revenue of $549.1 million and a GAAP net income of $53.2 million, marking a strong turnaround confirmed by CEO John J. Giamatteo. This success was driven by the QNX division, which posted record annual revenue of $268 million and reached Rule of 40 status, fueled by growth in automotive and expanding into robotics and medical devices. The Secure Communications division also revived, growing revenue to $258.9 million amid rising global demand for digital sovereignty, supported by key government contracts. Strong cash flow and disciplined capital management enabled $60 million in share repurchases, while positive momentum sets the stage for accelerated growth in fiscal 2027.