Key Takeaways:
BlackBerry raised its annual revenue forecast on Thursday as its QNX automotive software division extended its growth run, sending shares up 8% in premarket trading.
"We see more of our QNX customers are leaning into next-generation software defined vehicles," CEO John Giamatteo told Reuters. "They're working with us closely to deploy our platform across the board to help them meet those needs, so we actually see really healthy demand."
The company now expects full-year 2027 revenue of $594 million to $621 million, above its earlier projection of $584 million to $611 million. QNX revenue is forecast at $295 million to $312 million, compared with a prior range of $290 million to $307 million. The QNX division, which provides secure real-time operating systems for mission-critical embedded systems in the automotive sector, posted first-quarter revenue of $72.3 million, up nearly 26% from a year earlier.
The guidance raise marks the completion of BlackBerry's decade-long transition from smartphone maker to software provider. The QNX backlog of almost $1 billion in future royalties provides multi-year revenue visibility, with the company's secure communications division — encompassing encrypted voice, messaging and critical event management solutions — adding further support. That unit reported a 24% rise in revenue to $73.6 million in Q1, driven primarily by government contracts. CFO Tim Foote said a vast majority of the secure communications business is government, and a significant portion of the pipeline is also government.
Total first-quarter revenue reached $152.9 million, up 26% from the same period a year earlier. The raised guidance signals management expects automotive software demand to accelerate as automakers shift toward software-defined vehicle architectures. Investors will watch the Q1 earnings call for updated segment margin details and further color on QNX design-win momentum.
This article is for informational purposes only and does not constitute investment advice.
