You know that feeling when something just clicks? That’s how I’ve been feeling about BlackBerry (TSX:BB) lately. Not because of some sudden hype or short-term news, but because the more I look into the company’s direction, the clearer its long-term potential becomes. Based in Waterloo, this Canadian tech stock has evolved into a high-performance software firm, advancing in embedded systems, cybersecurity, and automotive tech.
Yes, it recently sold its Cylance unit. But that doesn’t mean it’s walking away from artificial intelligence (AI). In fact, it’s embedding AI and machine learning right into its other offerings, including its QNX platform. The company is finding smart ways to grow and sharpen its focus. Let me walk you through why BlackBerry is the one stock I’m placing my highest conviction in right now.
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Why BlackBerry tops my investment list right now
After rallying nearly 68% over the last 10 months, BlackBerry shares are currently trading at $5.52 apiece with a market cap of $3.3 billion. The solid recovery in BB stock comes not from hype, but from the company’s ongoing focus on delivering results. In the first quarter of its fiscal 2026 (ended in May 2025), BlackBerry beat expectations on almost every front – revenue, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), and net profit.
In the May quarter, the company’s revenue came in at US$121.7 million, just above the high end of its guidance. More importantly, BlackBerry also turned a net profit of US$1.9 million this quarter – its first time making money from regular operations since early 2022. On an adjusted basis, its net profit was US$12.3 million.
One of the biggest contributors to this strong growth was QNX, BlackBerry’s embedded systems division. The segment posted 8% YoY (year-over-year) growth, with its revenue hitting US$57.5 million and adjusted EBITDA at a strong US$12.7 million.
Smart capital allocation and renewed focus
What gives me more confidence about BlackBerry’s future is how it’s handling its capital. In the latest quarter, the company bought back 2.6 million shares worth US$10 million under its buyback program. At a time when many tech companies are tightening up due to macroeconomic uncertainties, BlackBerry’s move reflects not only confidence in its strategy but also a commitment to rewarding long-term shareholders.
As a result, the company ended the quarter with US$381.9 million in cash and investments, giving it the flexibility to continue investing in its core segments without relying on debt or dilution.
Preparing for the software-defined future
Interestingly, even after selling Cylance, BlackBerry is utilizing AI tech across its product ecosystem, including QNX and AtHoc. And through partnerships and product launches, the company is expanding its presence in the software-defined vehicle (SDV) space. It recently partnered with Vector to launch a foundational vehicle software platform to simplify SDV development.
Whether it’s helping automate AI-driven robotics through its safety-certified platforms or working with AMD to optimize performance in embedded systems, BlackBerry stock is aligning itself with long-term demand trends. To me, all of this signals a stock that’s not only surviving a turnaround – it’s actively making it happen.
