BlackBerry Ltd (BB) reported third-quarter results for fiscal 2026 after the bell Thursday, and the numbers came in better than Wall Street expected. The company that once dominated the smartphone world but has since pivoted to software and security delivered some encouraging signs of momentum.
The Numbers
BlackBerry posted third-quarter revenue of $141.8 million, topping analyst estimates of $137.4 million. Adjusted earnings came in at 5 cents per share, beating the consensus of 4 cents per share.
Total revenue declined about 1% year-over-year, but the story gets more interesting when you break it down by segment. QNX, the company's embedded operating system business, grew 10% during the quarter and brought in $68.7 million. Secure Communications generated $67 million, while Licensing added $6.1 million.
The company ended the quarter with $378 million in cash, cash equivalents, and short- and long-term investments.
"BlackBerry delivered revenue above the top end of the previously provided guidance range, which, coupled with ongoing cost discipline, helped the company achieve its strongest quarter of GAAP profitability in almost four years, along with increased operating cash flow," said John Giamatteo, CEO of BlackBerry.
Looking Ahead
BlackBerry guided fourth-quarter revenue between $138 million and $148 million, compared to analyst estimates of $143.39 million. The company expects adjusted earnings of 3 to 5 cents per share for the quarter versus the 4-cent consensus.
More notably, BlackBerry raised its full fiscal 2026 revenue guidance to $531-$541 million, up from previous expectations and roughly in line with the $531.94 million estimate. The company also lifted its full-year adjusted earnings guidance to 14-16 cents per share, above the 14-cent estimate.
BlackBerry executives planned to discuss the results further on a conference call at 5:30 p.m. ET.
Stock Movement: BlackBerry shares were down 0.92% in after-hours trading, changing hands at $4.30 at publication time Thursday.
