BlackBerry Lifts Outlook, But Analysts Warn Of QNX Deceleration - BlackBerry (NYSE:BB)

Core Viewpoint - BlackBerry Limited's stock declined despite beating third-quarter earnings and revenue expectations, as investor focus shifted to concerns over slowing QNX growth, overshadowing strong profitability and Secure Communications performance [1]. Financial Performance - BlackBerry reported third-quarter revenue of $141.8 million, exceeding analyst estimates of $137.4 million [2]. - The company achieved adjusted earnings of 5 cents per share, surpassing estimates of 4 cents per share [2]. - Fiscal 2026 revenue guidance was raised to a range of $531 to $541 million, compared to estimates of $531.94 million [3]. Analyst Insights - RBC Capital Markets analyst Paul Treiber maintained a Sector Perform rating with a price forecast of $4.50, noting that the third-quarter results exceeded both the firm's and consensus expectations [4]. - The revenue beat was primarily attributed to one-time revenue in the Secure Communications segment rather than sustained momentum in QNX [4]. QNX Performance - QNX revenue increased by 10% year over year, but it fell slightly short of expectations and showed a slowdown from the previous quarter's growth rate [5]. - Fourth-quarter guidance indicates a deceleration in QNX's year-over-year growth, suggesting a lower growth trajectory despite easier comparisons [5]. - BlackBerry narrowed its fiscal 2026 QNX revenue outlook, with weakened investor visibility into QNX growth, as a significant portion of recent growth was linked to Radar rather than core demand [5]. Stock Performance - BlackBerry shares were down 11.09% at $3.845 at the time of publication [6].