The Canadian enterprise software firm, BlackBerry (TSX: BB), released its earnings for the second quarter of its fiscal year 2026 (three months ended in August). And if you haven’t paid attention to BlackBerry stock in a while, now’s probably a good time to start. This quarter’s results show that the company is not only back in profit territory but also growing its margins and improving cash flow, all while exceeding guidance.
More importantly, its future-facing segments, including automotive software through QNX and secure enterprise communications, are showing real traction. In this article, I’ll highlight the key growth signals from the quarter, talk about what’s giving BlackBerry its spark back, and explain why it might be setting up for a stronger future than most expected.
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BlackBerry’s latest earnings beat reflects expanding profitability
In the second quarter, BlackBerry posted US$129.6 million in revenue, up 3% YoY (year over year) and beating both internal and street analysts’ expectations. This was a rare but welcome trend reversal for the company after a tough fiscal 2025. It also delivered adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of US$25.9 million, which came in at 20% of revenue and comfortably above its guidance.
Adding to the optimism, BlackBerry achieved GAAP (generally accepted accounting principles) profitability for the second straight quarter, with net profit of US$13.3 million and operating cash flow of US$3.4 million. At a time when many tech peers are struggling to balance costs due mainly to the ongoing macroeconomic uncertainties, BlackBerry reduced operating expenses and still delivered improved gross margins of 75%.
The company’s QNX segment, which mainly focuses on automotive-grade embedded software, delivered 15% YoY revenue growth, beating its own targets. Meanwhile, its secure communications business also exceeded revenue and EBITDA guidance, even though its YoY revenue slipped slightly. Nevertheless, recurring revenue in its secure communications division climbed from a year ago, showing stronger customer engagement and long-term contract strength.
These developments make it even more attractive
Besides its solid earnings, BlackBerry has been busy executing its long-term strategy. For example, in August, the company announced that its QNX operating system for Safety 8 is now integrated into NVIDIA’s DRIVE AGX Thor platform. This partnership gives the Canadian software company a front-row seat in the race toward fully autonomous vehicles, as developers rely on QNX to build safe and certifiable artificial intelligence (AI)-based driving systems.
Similarly, last week, BlackBerry launched QNX OS for Safety 8.0, a real-time operating system built for complex embedded systems. This operating system is already being used across sectors like robotics, medical devices, and aerospace, showing the software’s wide applicability beyond autos.
These developments clearly reflect how BlackBerry is aligning itself with long-term tech trends like machine learning-driven automation, secure mobile communications, and embedded AI systems.
Is it time to load up on BlackBerry stock?
While BlackBerry stock has more than doubled in value over the last 12 months, it’s still trading roughly 27% below its 52-week high. Trading at $6.47 per share with a market cap of $3.9 billion, it may still look like an ordinary stock sitting next to its big-tech peers. But that’s also what makes it more interesting, as it currently looks undervalued based on its long-term growth potential.
Moreover, BlackBerry’s improving financial footing, strategic partnerships, and renewed focus on future tech could be a signal of a long-awaited rebound for investors.
