Blackberry (TSX:BB) shares rose about 10% in early trade on Thursday after the company reported stronger-than-expected fourth quarter fiscal 2026 results and issued guidance that topped analyst estimates, signaling continued momentum in its turnaround.
The company posted revenue of $156 million for the quarter ended February, exceeding the consensus estimate of $144.4 million and marking roughly 10% year-over-year growth. Adjusted earnings came in at $0.06 per share, above expectations of $0.05.
Performance was driven in part by record results in BlackBerry’s QNX division, which generated $78.7 million in quarterly revenue, up 20% from a year earlier. The unit, which provides embedded software for automotive and industrial systems, has become a central pillar of the company’s strategy.
BlackBerry reported total adjusted gross margin of 78.2%, an increase of about five percentage points year-over-year, while adjusted EBITDA rose 71% to $36.1 million. GAAP operating income improved by $30.9 million to $22.9 million, extending what the company described as its eighth consecutive quarter of improvement in net income.
The Secure Communications segment also returned to growth, with revenue rising 8% year-over-year to $72.5 million, supported by demand for digital sovereignty solutions and higher defense-related spending. Annual recurring revenue for the segment reached $218 million.
Operating cash flow totaled $45.6 million, up 9% from a year earlier. The company ended the quarter with $274.7 million in cash and equivalents, while total cash and investments stood at $432.4 million.
"Since our leadership transition in 2023, we have been focused on a clear goal: to transform BlackBerry into a profitable growth company,” BlackBerry CEO John Giamatteo said in a statement. “Our performance this quarter and over the past year demonstrates that we are delivering.”
Looking ahead, BlackBerry guided first quarter fiscal 2027 revenue in the range of $132 million to $140 million, above the prior analyst estimate of $129.9 million.
For the full fiscal year, the company expects revenue between $584 million and $611 million, along with adjusted earnings per share of $0.15 to $0.19.