Development platform, real-time humanoid robot, and hands-on workshops round out QNX's critical enabling role in robotics systems WATERLOO, ONTARIO / ACCESS Newswire / February 17, 2026 / QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), today announced it will showcase a powerful lineup of missioncritical innovations at Embedded World 2026, taking place March 10 - 12, 2026 in Nuremberg, Germany. As industries move beyond traditional robotics and automation to embrace Physical AI, where machines perc ...

Core Thesis - BlackBerry Limited is viewed positively by some investors, with a current share price of $3.5600 and trailing and forward P/E ratios of 89.25 and 21.19 respectively [1][2] Company Transformation - BlackBerry has transitioned from a legacy handset maker to a software and services company, focusing on cybersecurity and embedded IoT infrastructure, particularly in mission-critical environments [3] - The business now centers on endpoint protection and secure communications for regulated enterprises and governments, alongside its QNX operating system, which is integrated into automotive and industrial systems [3] Financial Performance - Overall revenue has stabilized after a decline, but profitability remains marginal due to weak operating leverage despite high software-level gross margins [4] - BlackBerry maintains a manageable balance sheet with net cash, allowing time for execution, although this time is limited [4] Market Position and Assets - The cybersecurity segment serves regulated customers, providing stability rather than growth, while the QNX operating system is considered the company's most valuable asset, embedded in millions of vehicles [5] - Automotive software adoption is slow but durable once embedded, offering long-term optionality as vehicle software complexity increases [6] Market Perception and Valuation - BlackBerry's market capitalization is around $2–3 billion, reflecting skepticism due to past turnaround attempts rather than the intrinsic value of its assets [7] - The stock acts as a call option on management execution, QNX monetization, and potential asset separation, with significant risks including execution missteps and competitive pressures [7] Investment Outlook - For patient investors willing to accept uncertainty, BlackBerry presents long-duration optionality with asymmetric upside, with a long-term valuation estimate of $14.53 if the investment thesis materializes [8]

BlackBerry Limited (NYSE:BB) is among the overlooked penny stocks to invest in. On January 8, Todd Coupland, an analyst at CIBC, reiterated a Buy rating on BlackBerry Limited (NYSE:BB), with an unchanged $6 price target. As the highest 1-year price target, the reaffirmed stance reflects an upside potential of 57.89% from the current price. On the same day, RBC Capital maintained a Sector Perform rating and a price target of $4.50 on BlackBerry Limited (NYSE:BB). According to the firm, the macroeconomic e ...

Core Viewpoint - BlackBerry Limited (NYSE:BB) is identified as a promising debt-free penny stock, with RBC Capital maintaining a Sector Perform rating and a price target of $4.50, despite facing near-term challenges in its QNX business due to project deferrals and platform launch delays [1][2]. Financial Performance - QNX revenue grew by only 7% in the third quarter, which is below the long-term target of a 14% compound annual growth rate, indicating a trend towards the lower end of the company's growth expectations [2]. - BlackBerry achieved its third consecutive quarter of GAAP profitability in Q3 FY26, with non-GAAP earnings per share rising to $0.05, surpassing consensus estimates by 25% [2][3]. - Total revenue for the quarter reached $141.8 million, while GAAP net income was reported at $13.7 million, reflecting a significant improvement of $24 million compared to the same quarter last year [3]. Business Focus - BlackBerry has transitioned from manufacturing phones to providing intelligent security software and solutions, emphasizing sectors such as the Internet of Things (IoT), cybersecurity, and embedded systems, particularly in the automotive industry [4].

Company Overview - The company is an iconic Canadian firm headquartered in Waterloo, Canada, with a global footprint [3]. Leadership and Updates - The CEO, John Giamatteo, welcomed attendees at CES and expressed gratitude for their participation, indicating an updated narrative on the company's progress and direction [2]. - The leadership team includes key figures from the QNX side of the business, such as Grant Courville and Justin Moon, who are instrumental in the company's technological advancements [2]. - The CFO, Tim Foote, is also part of the leadership team, contributing to a comprehensive update on the company's progress [3].

Summary of the Conference Call Company Overview - The company is an iconic Canadian firm headquartered in Waterloo, Canada, with a global presence in over 20 countries and approximately 1,700 employees, primarily based in Canada [3][2] - The company is projected to exceed $530 million in revenue this year, transitioning from a focus on cybersecurity to secure communications [3][4] - The business is structured into three main divisions: QNX, secure communications, and licensing, with QNX identified as the growth engine [3][5] Financial Performance - The company has achieved seven consecutive quarters of improving net income, with the last three quarters showing positive net income [5][6] - The operating cash flow has stabilized, moving from cash burn to sustainable cash generation, with the exception of one seasonal quarter [6][5] - The backlog for QNX has increased to $865 million, up from $460 million in Q4 2022, indicating strong growth potential [38][39] QNX Business Insights - QNX is positioned as the de facto choice for critical embedded systems across various industries, including automotive, industrial, and medical [10][20] - The launch of QNX 8 focuses on performance, scalability, and real-time capabilities without compromising safety and security [11][21] - The addressable market for QNX is expanding, with a projected threefold increase due to strategic investments [13][42] Market Trends and Opportunities - The automotive industry is shifting towards more intelligent vehicles, with increasing demand for performance and reliability [12][10] - The complexity of vehicle systems is expected to triple, creating opportunities for QNX to provide solutions [19][18] - The company has secured partnerships with top OEMs, including BMW, which has selected QNX for its new generation of vehicles featuring advanced computing capabilities [17][12] Strategic Initiatives - The introduction of Alloy Core, a joint development with Vector Informatik, aims to streamline technology integration and enhance safety and security in automotive systems [26][30] - The General Embedded Markets (GEM) segment is experiencing rapid growth, with expectations for it to contribute significantly to overall revenue [54][53] - The QNX Everywhere initiative aims to increase accessibility to QNX technology for academic and research purposes, fostering future growth [34][36] Competitive Landscape - The company emphasizes its competitive moat built on trust, proven performance, and a strong track record in safety and security certifications [20][22] - The dynamics of low-cost competition from Chinese OEMs are acknowledged, but the company maintains that safety and reliability remain paramount for global OEMs [45][50] Future Outlook - The company is optimistic about its growth trajectory, with expectations for continued double-digit growth and a strong financial profile moving towards Rule of 40 status [42][39] - The focus on innovation and strategic investments positions the company well for long-term success in both automotive and adjacent markets [40][41] Key Metrics - Revenue projection: Exceeding $530 million [3] - QNX backlog: $865 million, up from $460 million [38] - Seven consecutive quarters of improving net income [5] - Anticipated threefold increase in addressable market [13]

Core Viewpoint - BlackBerry Limited will host an investor-focused presentation and Q&A session at CES 2026, highlighting key announcements and growth drivers for QNX [1] Group 1 - The presentation will be streamed from the QNX booth at CES 2026 in Las Vegas [1] - Members of the management team will participate in the session [1] - The focus will be on how CES announcements are contributing to growth for QNX [1]

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].

Core Insights - BlackBerry Limited's stock declined despite exceeding third-quarter earnings and revenue expectations, along with an improved fiscal 2026 outlook [1][2][3] Financial Performance - The company reported third-quarter revenue of $141.8 million, surpassing analyst estimates of $137.4 million [2] - Adjusted earnings for the quarter were 5 cents per share, exceeding estimates of 4 cents per share [2] - BlackBerry raised its fiscal 2026 revenue guidance to a range of $531 to $541 million, compared to estimates of $531.94 million [3] Analyst Commentary - RBC Capital Markets analyst Paul Treiber maintained a Sector Perform rating with a price target of $4.50, noting that the third-quarter results exceeded both the firm's and consensus expectations [4] - The revenue beat was largely attributed to one-time revenue in the Secure Communications segment, rather than sustained growth in QNX [4] QNX Performance - QNX revenue increased by 10% year-over-year but fell slightly short of expectations and showed a slowdown from the previous quarter's growth rate [5] - Guidance for the fourth quarter 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 investor visibility into QNX growth diminishing, as recent growth is significantly linked to Radar rather than core demand [5] Market Reaction - Following the earnings report, BlackBerry shares dropped by 11.09%, trading at $3.845 at the time of publication [6]

Core Insights - BlackBerry Limited (BB) reported a non-GAAP EPS of 5 cents for Q3 fiscal 2026, exceeding its estimate of 2-4 cents and the Zacks Consensus Estimate of 4 cents [1][10] - The company achieved quarterly revenue of $141.8 million, surpassing the upper end of its guidance ($132-$140 million) but reflecting a 1.3% year-over-year decline due to weaker sales in Secure Communications and Licensing [2][10] Financial Performance - For fiscal 2026, BlackBerry raised its total revenue outlook by $6 million to a range of $531 million–$541 million and increased the adjusted EBITDA midpoint by $7.5 million to $94 million–$104 million [3] - QNX division reported record revenue of $68.7 million, a 10% year-over-year increase, driven by higher royalties and growth in development seats and professional services [5][10] - Secure Communications revenue reached $67 million, exceeding guidance ($60-$64 million) and driven by strong UEM renewals despite the U.S. government shutdown [6][10] - Licensing revenues were $6.1 million, slightly down from $6.7 million in the previous year but meeting expectations [7] Margin and Expense Analysis - Adjusted gross margin remained steady at 78%, while QNX gross margin improved sequentially to 84% but declined year-over-year [8] - Adjusted operating expenses rose 7% year-over-year to $85.4 million as the company continued to invest in QNX growth [9] Cash Flow and Shareholder Returns - Operating cash flow for Q3 was $17.9 million, more than doubling year-over-year, with free cash flow at $17 million compared to $5 million in the previous quarter [12] - The company returned $5 million to shareholders through share repurchases, indicating management's confidence in its trajectory [13] Q4 Guidance - For Q4, BlackBerry expects QNX revenue of $71 million–$77 million and adjusted EBITDA of $17 million–$23 million, along with raised expectations for Secure Communications revenue of $61 million–$65 million [14] - Total revenues are projected to be between $138 million and $148 million, with adjusted EBITDA between $22 million and $32 million [15] - Operating cash flow for Q4 is anticipated to rise to $40 million–$45 million, strengthening the balance sheet further [16]