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]

Core Viewpoint - BlackBerry Ltd reported better-than-expected financial results for Q3 of fiscal 2026, with revenue and adjusted earnings surpassing analyst estimates, while also raising its full-year revenue and earnings guidance [2][5]. 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, beating estimates of 4 cents per share [2]. - Total revenue decreased by approximately 1% year-over-year, although QNX revenue grew by 10% during the quarter [2]. Cash Position - At the end of the quarter, BlackBerry had $378 million in cash, cash equivalents, and short- and long-term investments [3]. Management Commentary - CEO John Giamatteo highlighted that the revenue exceeded the top end of the previously provided guidance range, contributing to the strongest quarter of GAAP profitability in nearly four years, along with increased operating cash flow [3]. Future Outlook - For the fourth quarter, BlackBerry expects revenue between $138 million and $148 million, compared to estimates of $143.39 million [4]. - The company anticipates fourth-quarter adjusted earnings of 3 to 5 cents per share, aligning with estimates of 4 cents per share [4]. Guidance Update - BlackBerry raised its fiscal 2026 revenue guidance to a range of $531 million to $541 million, compared to estimates of $531.94 million [5]. - The full-year adjusted earnings guidance was also raised to a range of 14 to 16 cents per share, versus estimates of 14 cents per share [5]. Revenue Breakdown - Revenue by category included QNX at $68.7 million, Secure Communications at $67 million, and Licensing at $6.1 million [6].

Overview of BlackBerry - BlackBerry has undergone a significant transformation over the past two years, focusing on two main autonomous divisions: QNX, which is centered around embedded software, and secure communications, which emphasizes cybersecurity and mission-critical communications [1][2] Division Focus - The company has narrowed its cybersecurity portfolio to concentrate on its heritage in secure communications, particularly in collaboration with governments [2] - BlackBerry has developed a substantial intellectual property (IP) portfolio over its 40-year history, which serves as a key driver of revenue, profit, and overall value for the company [2]

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite the Russell 3000 Index gaining 8% year-to-date, with calendar-year returns exceeding 14% [1] Company Summary: L3Harris Technologies, Inc. (NYSE:LHX) - L3Harris Technologies, Inc. is a global provider of mission-critical solutions for government and commercial customers, with a market capitalization of $53.716 billion and a share price of $287.11 as of November 5, 2025 [2] - The company experienced a one-month return of -3.86% but a 12.52% increase in share value over the last 52 weeks [2] - L3Harris is benefiting from strong demand from the US government and allies in areas such as small satellites, secure communications, and rocket motors, contributing to higher earnings growth [3] - Cost-cutting measures and improved execution at Aerojet Rocketdyne, acquired two years ago, are positively impacting the company's performance [3] - In Q3 2025, L3Harris reported revenue of $5.7 billion, reflecting a strong organic growth of 10% [4] - The number of hedge funds holding L3Harris increased from 42 to 53 in the second quarter of 2025, indicating growing interest [4]

Core Viewpoint - RBC Capital maintains a "Sector Perform" rating for BlackBerry, with a revised price target of $4.50, reflecting cautious optimism about the company's future performance [1][5] Financial Performance - BlackBerry reported second-quarter earnings that surpassed analysts' expectations, driven by strong growth in its QNX platform and significant wins in Secure Communications [2][5] - The company has raised its outlook following these positive developments [2] Stock Performance - BlackBerry's stock price increased to $4.87, up 4.73% or $0.22 for the day [2] - The stock has shown volatility, trading between $4.64 and $4.91 on the day, with a yearly range of $2.24 to $6.24 [3] Market Metrics - BlackBerry's market capitalization is approximately $2.9 billion, indicating the total market value of the company's outstanding shares [4] - The trading volume today is 5,432,040 shares, suggesting active investor interest and reflecting sentiment towards BlackBerry's recent performance and future prospects [4]

Core Viewpoint - BlackBerry shares surged significantly after the company reported better-than-expected first-quarter financial results and raised its fiscal 2026 sales guidance [1][3]. Financial Performance - BlackBerry reported quarterly earnings of $0.02 per share, surpassing the analyst consensus estimate of $0.00 [1]. - Quarterly revenue reached $121.7 million, exceeding the Street estimate of $112.18 million [1]. - QNX revenue increased by 8% to $57.5 million, while Secure Communications revenue exceeded guidance at $59.5 million [2]. Fiscal Guidance - The company affirmed its fiscal 2026 adjusted EPS guidance of $0.08 to $0.10 [3]. - Fiscal 2026 revenue guidance was raised from $504 million-$534 million to $508 million-$538 million, compared to the $513.51 million estimate [3]. Analyst Reactions - RBC Capital analyst Paul Treiber maintained a Sector Perform rating and slightly increased his price forecast from $3.75 to $4, noting strong revenue from Secure Communications and QNX segments [4]. - Canaccord Genuity analyst Kingsley Crane maintained a Hold rating while modestly increasing the price forecast from $4.25 to $4.60, highlighting strong IoT results [5][6]. Market Outlook - Analysts noted that the raised fiscal 2026 guidance remains conservative due to uncertainties in the automotive sector and broader macroeconomic conditions [5][11]. - A backlog of approximately $865 million in QNX presents significant revenue opportunities, though clarity on timing for revenue recognition remains a concern [9][10]. Strategic Initiatives - The company is positioned for substantial expansion in the general embedded opportunity, which represents 43% of the overall pipeline for Software-Defined Vehicle 8.0 [12]. - Management's tone has improved, indicating a more optimistic outlook for the business compared to the previous year [11].

Core Insights - BlackBerry reported quarterly earnings of two cents per share, surpassing the analyst consensus estimate of zero cents, with quarterly revenue of $121.7 million exceeding the Street estimate of $112.18 million [1][2] Financial Performance - The company achieved a non-GAAP gross margin of 75% [4] - QNX revenue grew by 8% year-over-year to $57.5 million, with an adjusted gross margin of 81% [4] - Secure Communications revenue reached $59.5 million, exceeding prior guidance, with an adjusted gross margin increase of 6 percentage points sequentially and 4 percentage points year-over-year to 70% [4] - Licensing revenue was reported at $4.7 million, and adjusted EBITDA stood at $3.8 million [4] Management Commentary - CEO John J. Giamatteo stated that BlackBerry made a strong start to the new fiscal year, building on a solid foundation laid over the past year, with both QNX and Secure Communications divisions effectively executing their strategies [2] Future Guidance - BlackBerry affirmed its fiscal 2026 adjusted EPS guidance in the range of eight cents to 10 cents [2] - The company raised its fiscal 2026 revenue guidance from a range of $504 million to $534 million to a new range of $508 million to $538 million, compared to the $513.51 million estimate [2] Stock Performance - Following the earnings report, BlackBerry stock increased by 4.16% to $4.51 in extended trading [3]

Core Insights - BlackBerry Limited (BB) is focusing on enterprise software and cybersecurity, with Secure Communications revenues of $67.3 million making up nearly 50% of total revenues in the last quarter, exceeding management's expectations of $62-$66 million [1] Group 1: Secure Communications Division - The Secure Communications division includes encrypted voice, messaging, and critical event management solutions, trusted by governments and enterprises for military-grade protection [2] - Key products such as Secusuite, AtHoc, and UEM are recognized for their competitive advantages, including NSA-certified end-to-end encryption and a wide range of industry certifications [2] - Secusuite is expanding beyond Germany, while AtHoc is increasing its presence in the U.S. government sector, focusing on public safety services [3] Group 2: Financial Performance - Over the past fiscal year, the Secure Communications unit has seen stable revenues and improved profitability, contributing positively to BB's EBITDA and cash flow [4] - The unit is showing positive momentum with healthier annual recurring revenue (ARR) trends, reflecting improving fundamentals and long-term growth potential [4] Group 3: Market Dynamics - Increased defense budgets in the U.S., Europe, and Asia are driving demand for secure communication systems, while hybrid work trends are prompting investments in secure tools to prevent data breaches [5] - However, BB is cautious about the Secure Communications unit due to potential instability from political changes in key markets like the U.S. and Germany [6] Group 4: Competitive Landscape - Competitors like Fortinet and CrowdStrike are advancing in AI-driven cybersecurity, with Fortinet's SecOps business growing 29% year-over-year [7][10] - BB's shares have gained 77.4% over the past year, outperforming the Zacks Internet – Software industry's growth of 33.2% [11] - BB trades at a forward price-to-sales ratio of 4.53X, which is lower than the industry's average of 5.6X [12]