BlackBerry Ltd. (BB) stock is trading lower Friday as analysts weighed a stronger-than-expected second quarter against softer near-term signals in parts of the business.

Canaccord Genuity maintained its Hold rating on BlackBerry and lowered its price forecast to $9.50 from $10.30 following the company's second-quarter results and softer third-quarter guidance.

BlackBerry's third-quarter guidance was soft at the midpoint. Revenue guidance of $143 million to $154 million implies a midpoint below the $149.6 million consensus, while adjusted EPS guidance of 4 cents to 5 cents ranges from below to in line with the 5-cent estimate.

RBC Sees QNX Momentum, But Valuation Limits Upside

Meanwhile, RBC Capital Markets maintained its Sector Perform rating and an unchanged $9 price forecast. Analyst Paul Treiber said BlackBerry delivered a strong headline beat and raised its fiscal 2027 guidance. However, RBC sees a balanced risk-reward after the stock's significant valuation re-rating.

BlackBerry reported second-quarter revenue of $163.3 million, up 26% year over year: that topped RBC's $148 million estimate and the $145.6 million consensus. Adjusted EPS of 7 cents also beat RBC and consensus estimates of 4 cents.

RBC highlighted QNX as the key bright spot. QNX revenue rose 27% to a record $80.3 million, helped by stronger automotive royalties and development activity. The unit also posted its largest-ever quarter for design wins by dollar value, including a more than $100 million Alloy Kore win with Coretura.

Secure Communications Clouds Near-Term Outlook

The softer part of the outlook came from Secure Communications. BlackBerry cut its fiscal 2027 revenue guidance for the segment to $260 million to $270 million, citing uncertainty around government procurement and the Canada-U.S. geopolitical environment. RBC said third-quarter Secure Communications revenue guidance of $55 million to $60 million was below both its estimate and consensus.

Still, BlackBerry raised its overall fiscal 2027 revenue outlook to $616 million to $636 million and adjusted EBITDA guidance to $141 million to $158 million, reflecting stronger QNX and licensing performance.

RBC said valuation remains the main constraint. The firm estimates BlackBerry now trades at 7.8 times next-12-month enterprise value-to-sales, well above its five-year average. Its $9 price forecast values QNX at 13 times calendar 2027 estimated sales while assigning a lower multiple to Secure Communications because of slower growth.

BlackBerry Price Action

BB Price Action: BlackBerry shares were down 6.24% at $8.18 at the time of publication on Friday, according to market data.