BlackBerry Boosts Revenue Forecast Following Strong QNX Performance
By Prathik Jayaprakash and Harshita Mary Varghese
Sept 24 (Reuters) – BlackBerry has raised its full-year revenue forecast after its QNX software business achieved record quarterly revenue, fueled by growth in the automotive sector and new design wins.
Despite the positive news, shares of the Toronto-based company dipped about 3% following a third-quarter forecast that aligned with expectations. Nevertheless, BlackBerry’s stock has more than doubled in value this year.
Revenue for the QNX division, which specializes in software for safety-critical systems in vehicles and other applications, increased by 27% to $80.3 million in the second quarter that ended on August 31.
Automotive remains central to BlackBerry’s business strategy, with the company highlighting that the shift toward software-defined vehicle architectures is broadening both the number of vehicles that can be addressed and the amount of QNX software deployable in each. Notable automakers such as Audi, Daimler, General Motors, Hyundai, and Mercedes-Benz are utilizing BlackBerry’s QNX software in their vehicles.
The QNX software is applied across various automotive domains, including digital cockpits, advanced driver assistance, and body-control systems. BlackBerry CEO John Giamatteo mentioned in an interview, “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.”
The company now anticipates full-year 2027 revenue between $616 million and $636 million, an increase from its prior forecast of $594 million to $621 million.
Additionally, Coretura, a joint venture between Volvo Group and Daimler Truck, has chosen BlackBerry’s QNX software for next-generation commercial vehicles, a deal that could add more than $100 million to QNX’s royalty backlog, marking BlackBerry’s largest QNX contract to date.
In the second quarter, BlackBerry reported revenue of $163.3 million, surpassing analysts’ forecasts of $145.6 million, according to data from LSEG.
For the third quarter, BlackBerry expects revenue in the range of $143 million to $154 million, compared to an estimate of $149.6 million.
(Reporting by Harshita Mary Varghese and Prathik Jayaprakash in Bengaluru; Editing by Diti Pujara)
