BlackBerry reported $152.9 million in Q1 revenue, surpassing estimates, driven by growth in QNX and Secure Communications segments.
BlackBerry shares surged nearly 21% after the company reported first-quarter fiscal 2027 results that exceeded analyst expectations. Revenue rose 26% year over year to $152.9 million, beating the consensus estimate of $138.2 million. Adjusted earnings per share reached $0.04, above the $0.03 estimate, while adjusted EBITDA jumped 144% to $36.3 million.
The growth was led by BlackBerry’s QNX automotive software and Secure Communications divisions, both achieving the Rule of 40 benchmark. QNX revenue climbed 26% to $72.3 million, with adjusted EBITDA up 52% to $19.3 million. Secure Communications revenue increased 24% to $73.6 million, with adjusted EBITDA more than doubling to $20.2 million. Annual recurring revenue for the division stood at $220 million.
The company also reported positive operating cash flow of $4.6 million, its first profitable fiscal first quarter in nine years, excluding a patent sale in fiscal 2024.