When most investors think of Canadian tech, Shopify usually steals the spotlight. But dig a little deeper, and you’ll find a lesser-known legend quietly turning its ship around: BlackBerry (TSX:BB). Yes, the same BlackBerry that once dominated your high school group chats is now powering the world’s most secure communications and autonomous vehicles. And with shares down roughly 42% from 52-week highs, it may be one of the most magnificent Canadian tech stocks to buy and hold forever.
About BlackBerry
Before diving into why BlackBerry deserves a spot in your long-term portfolio, let’s look at how far it has come. This isn’t the same company that fizzled out in the smartphone wars. BlackBerry has completely reinvented itself, leaning into cybersecurity, artificial intelligence (AI), and embedded automotive software. It has gone from making phones to powering them, under the hood, literally.
BlackBerry’s recent earnings report for Q1 fiscal 2026 is a strong sign that the strategy is working. Revenue came in at $121.7 million, beating guidance. That’s no small feat in today’s macro environment. It also posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $16.4 million, another beat.
The turnaround isn’t just a one-quarter wonder. Its QNX segment, used in over 235 million cars globally, delivered $57.5 million in revenue, up 8% year over year. The division also produced an impressive adjusted EBITDA margin of 22%. Secure Communications, which includes government-grade cybersecurity offerings, posted $59.5 million in revenue and a 70% gross margin. Both segments beat guidance. That’s not luck. That’s execution.
Why the dip?
Despite the strong performance, BlackBerry stock is trading at around $5.09, far below its 52-week high of $8.86. That’s a 42% drop, even though the business itself is in better shape than it has been in years. Part of this disconnect is due to the broader tech sell-off and investor fatigue from its past disappointments, not to mention meme stock history. But long-term investors know that price and value are not the same.
From a valuation perspective, BlackBerry is now trading at 4 times sales and 3 times book value. Its forward price-to-earnings ratio sits at 36.1, which isn’t outrageous for a tech company with renewed profitability, a clean balance sheet, and exposure to high-growth areas like embedded systems and cybersecurity.
What to watch
Cash is another feather in its cap. BlackBerry ended the quarter with $381.9 million in total cash and investments, compared to $235.7 million in debt. That gives it the flexibility to invest in growth or return capital to shareholders, which it did, buying back 2.6 million shares this quarter. In fact, the company just launched a share buyback program that shows it believes the stock is undervalued.
Of course, it’s not all smooth sailing. The company is still in the midst of proving its relevance in today’s fast-moving tech world. Quarterly revenue fell slightly year over year, and the Secure Communications’ net revenue retention rate dipped from 93% to 92%. But these are manageable bumps on an otherwise improving road.
Looking ahead, BlackBerry is guiding for up to $538 million in total revenue for fiscal 2026 and non-GAAP earnings per share between $0.08 and $0.10. For a stock priced just over $5, that’s compelling. It means investors are buying into a rare Canadian company that offers software-driven recurring revenue, growing margins, and, finally, net income.
Bottom line
So, is BlackBerry still a long shot? Maybe. But it’s a lot less speculative than it used to be. The company has carved out a strong position in automotive tech and cybersecurity – two areas that aren’t going anywhere. Its balance sheet is healthy. Its margins are expanding. And it just proved it can turn a profit.
In short, this is no longer a turnaround story. It’s a comeback. And with shares still deeply discounted from their highs, now may be the time to grab a slice and hold it for the long haul. Because when it comes to tech stocks you can actually feel good about owning in Canada, BlackBerry might just be one of the most magnificent.
