BlackBerry Increases Revenue Forecast Amid QNX Growth
By Prathik Jayaprakash and Harshita Mary Varghese
Sept 24 (Reuters)
BlackBerry has raised its full-year revenue forecast following a record performance in its QNX software division, driven by robust growth in the automotive sector and multiple new design wins. Despite this positive news, shares of the Toronto-based company dropped by approximately 3% after it announced a third-quarter forecast that aligned with expectations. However, the stock price has more than doubled this year.
In the second quarter ending August 31, revenue from BlackBerry’s QNX division—responsible for software in safety-critical systems across vehicles, robotics, medical devices, and industrial applications—rose by 27% to $80.3 million.
The automotive sector remains central to BlackBerry’s operations. The company noted that the transition to software-defined vehicle architectures is increasing both the number of vehicles that can be addressed and the volume of QNX software that can be implemented in each one. Major automakers like Audi, Daimler, General Motors, Hyundai, and Mercedes-Benz utilize BlackBerry’s QNX technology in their vehicles.
BlackBerry CEO John Giamatteo stated, “We’re supporting all the different domains of the car. That’s one of the reasons why we’re seeing some of the explosive growth.”
Looking ahead, BlackBerry forecasts full-year 2027 revenue to be between $616 million and $636 million, an increase from its previous estimate of $594 million to $621 million.
Additionally, Coretura—a joint venture between Volvo Group and Daimler Truck—has chosen BlackBerry’s QNX software for its next-generation commercial vehicles. This contract is expected to add over $100 million to QNX’s royalty backlog, marking it as the company’s largest QNX deal to date.
In the second quarter, BlackBerry’s total revenue reached $163.3 million, surpassing analyst predictions of $145.6 million based on data from LSEG. The company anticipates third-quarter revenue to fall between $143 million and $154 million, slightly below the consensus estimate of $149.6 million.
(Reporting by Harshita Mary Varghese and Prathik Jayaprakash in Bengaluru; Editing by Diti Pujara)
