Shares of BlackBerry Ltd shifted higher Wednesday, climbing 3.2% to $9.10 in pre-market trading ahead of the company's fiscal first-quarter 2027 results due June 25. The move caps a volatile week that saw the stock swing between $8.38 and $9.17, signaling that traders are placing bets — not convictions — on what the report will reveal about BlackBerry's two core businesses: its embedded automotive software and its cybersecurity unit. BlackBerry Rallies 3.2% Into Tomorrow's Earnings — but Is a $950 Million Software Backlog Enough to Sustain the Run
Shares of BlackBerry surged to $9.10 in pre-market Wednesday, up 3.2% from the prior close, as traders placed bullish bets hours before the company reports fiscal Q1 2027 results on June 25. Analysts expect non-GAAP earnings of $0.03 per share on revenue between $132 million and $140 million. The question: can a company once left for dead as a phone maker prove its reinvention as an automotive and cybersecurity software firm is real — and durable?
The Stock Has Doubled in Six Months, Raising the Bar Considerably. BlackBerry shares have gained 109.5% over the past six months, driven by a strong backlog in its embedded automotive software unit and an expanding cybersecurity division.
But the stock recently swung from above $10 to the high-$8 range as profit-taking and cautious analyst notes kicked in. That means tomorrow's print needs to validate a lofty run or risk triggering another leg down.
The Real Growth Engine Is Software Running Inside Cars, Not Phones. BlackBerry's QNX technology is now deployed in more than 275 million vehicles worldwide, and the segment generated $268 million — nearly half of fiscal 2026 revenue.
In Q4, QNX posted record revenue of $78.7 million, up 20% year-over-year, with gross margins of 84%. For Q1, however, management guided QNX revenue to just $60–$64 million, reflecting normal seasonality. Investors will watch whether the company's $950 million royalty backlog — essentially future revenue from cars already in production pipelines — is converting fast enough. Analysts note that backlog conversion is slow, typically lagging design wins by two to three years.
Cybersecurity Is Growing Again, Fueled by Government Spending. The Secure Communications division reached a growth inflection point, fueled by "digital sovereignty" trends — governments insisting on in-country hosted, nationally controlled solutions.
Management guided this unit to $66–$70 million in Q1 revenue and $270–$280 million for the full year, implying roughly 4–8% growth.
Profitability Is Real, but the Valuation Assumes Acceleration. Full fiscal 2026 revenue hit $549 million with GAAP net income of $53.2 million — a dramatic swing from a $79 million loss the prior year.
For fiscal 2027, guidance calls for $584–$611 million in total revenue. At a roughly $5.4 billion market cap, investors are pricing in years of compounding growth from a business still generating modest free cash flow. Tomorrow's numbers — and the tone on the call — will determine whether this rally has legs.