10-Q · June 25, 2026
BlackBerry reported strong Q1 FY27 results, with revenues of $152.9 million and net income of $8.5 million, representing a significant year-over-year increase. Both the QNX and Secure Communications segments exhibited…
Earnings analysis · 10-Q
BB earnings analysis
Filed September 24, 2026 · Our reading of the company's report
The latest report
BlackBerry reported Q2 revenue of $163.3 million and adjusted EPS of $0.07, beating consensus estimates of $145.0 million and $0.04, respectively. Strong QNX execution and the raised FY27 outlook of $616 million-$636…
Read full summary
BlackBerry reported Q2 revenue of $163.3 million and adjusted EPS of $0.07, beating consensus estimates of $145.0 million and $0.04, respectively. Strong QNX execution and the raised FY27 outlook of $616 million-$636 million in revenue support a bullish trend, although Secure Communications weakened. Credit and concentration risks increased, with three customers exceeding 10% of receivables and past-due receivables rising 3.1%.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.07
- Segment
- QNX: management characterized performance as strong and record-setting, but the supplied 10-Q extract does not disclose segment revenue.
- Segment
- Secure Communications: remained profitable but weakened; the supplied 10-Q extract does not disclose segment revenue.
What stood out
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Revenue and EPS beat consensus
Q2 revenue was $163.3 million, exceeding the $145.0 million consensus estimate by $18.3 million, or 12.6%. Adjusted EPS was $0.07 versus the $0.04 estimate.
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FY27 outlook raised
Management raised FY27 revenue guidance to $616 million-$636 million and adjusted EBITDA guidance to $141 million-$158 million after citing strong first-half execution.
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Positive quantitative Q3 outlook
Q3 FY27 guidance calls for revenue of $143 million-$154 million and adjusted basic EPS of $0.04-$0.05, providing a quantitative near-term outlook.
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Currency exposures are actively managed
Foreign-currency exposure shifted materially since February 28, 2026: foreign-currency cash declined from 15.0% to 10%, while foreign-currency receivables rose from 22% to 44% and payables rose from 46% to 71%.
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Hedged FX sensitivity remains immaterial
The company reported that a uniform 10% strengthening or weakening of foreign currencies against the U.S. dollar, after hedging, would have an immaterial impact on net monetary asset and liability balances.
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Controls remained effective
Disclosure controls and procedures were effective as of August 31, 2026, and no changes during the quarter materially affected, or were reasonably likely to materially affect, internal control over financial reporting.
What to watch
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Receivables concentration increased
Three customers represented more than 10% of accounts receivable at August 31, 2026, versus two customers at February 28, 2026. Customer concentration therefore increased and could amplify collection or liquidity pressure.
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Past-due receivables increased
The percentage of receivables past due increased by 3.1% during Q2 compared with the fourth quarter of fiscal 2026. The company warned that delayed payments from resellers and distribution partners could negatively affect liquidity and financial condition.
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Credit-loss allowance rose
The allowance for credit losses was $3.5 million at August 31, 2026, up from $3.4 million at February 28, 2026, indicating modestly higher expected credit losses.
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Foreign-currency payables expanded
Foreign-currency accounts payable increased to 71% at August 31, 2026 from 46% at February 28, 2026. Management cautioned that hedges may offset only part of currency movements and that hedge gains or losses may not coincide with underlying exposures.
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Quarterly revenue concentration
Two customers each represented 10% of Q2 revenue, creating meaningful revenue concentration even though no customer exceeded 10% of revenue for the six months ended August 31, 2026.
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Private investment valuation risk
The company disclosed a high concentration of risk in a small number of non-marketable private-company equity investments. These holdings are subject to fair-value changes and impairment risk, particularly because certain investments are early-stage and lack operational history.
Management's outlook
Management raised FY27 revenue guidance to $616 million-$636 million and adjusted EBITDA guidance to $141 million-$158 million. Q3 FY27 revenue guidance was $143 million-$154 million and adjusted basic EPS guidance was $0.04-$0.05.
Earlier filings 4
10-K · April 9, 2026
BlackBerry continues to execute a software-and-services strategy anchored by a fast-growing QNX division and a certified Secure Communications portfolio. Fiscal 2026 revenue was $549.1M and the company returned to GAAP…
10-Q · September 25, 2025
BlackBerry reported Q2 revenue of $129.6 million, up $3.4 million versus $126.2 million a year ago, and produced GAAP net income of $13.3 million (diluted EPS $0.02) compared with a $19.7 million net loss (diluted loss…
10-Q · December 20, 2024
BlackBerry reported revenue of $143 million for the quarter ended November 30, 2024, down $9 million from $152 million a year earlier, and recorded a GAAP net loss of $11 million (basic and diluted loss per share of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.