Is Blackberry Primed For a Comeback?

Many people still see the word “Blackberry” and automatically think of the phones. So, I decided to dig in to see what the new hype around this name is. What if I told you that they have totally transformed their company into two different sectors: cybersecurity and physical AI.

Now let’s dive into the core business of what Blackberry is mainly comprised of now. There are three segments, but only two matter. QNX which is a real time OS for safety critical systems. It is quietly already operating in 255m+ vehicles. The main customers are BMW, Mercedes, Toyota, Honda, VW, Volvo. The big partnership you don’t hear about is NVIDIA. The partnership with NVDA is expanding into robotics, medical and industrial fields.

The second core of their business is cybersecurity. The government just renewed the FEDRAMP Class D (High) which is the government’s highest cloud security level. This is the only critical event-management platform certified there.

The Numbers (FY2026)

• Revenue $549.1M, +2.7% YoY (beat by 2.2%)
• Net income $53.2 M, 9.7% margin- first sustained profit
• EPS $0.09 vs -$0.014 prior year (beat by 12%)
• 8 consecutive profitable quarters
• 120%/yr avg EPS growth over 3 years while the stock fell 5% yr. That divergence is what caught my attention.
• Put simply, this is a company turning the corner, not one promising to.

Why its moving now

• Multiple price target raises from where it currently trades at ($8.93)
• Buyback renewed: 26.8 M shares through 2027. Prior buybacks averaged $3.85 which is signaling the stock is cheap.
• QNX software mentioned at Robotics Summit on NVIDIA + Intel hardware

Now I present to you the bull case. The ASIL-D cert takes years + hundreds of millions to earn. QNX stays for the products life which can be 7-10 years in automobiles. QNX wins the parts that can’t fail. The NVIDIA partnership could speed up Blackberry’s earnings through more partnerships and higher usage. If QNX is the main backbone of anything having to do with physical AI, that would be huge. If this happens, it is definitely not priced into the stock. The buybacks signal that the company thinks the stock is undervalued at these levels.

Now let’s present some bear cases. The revenue only grew 2.7%. The whole re rating needs QNX to accelerate and that’s not in the numbers yet. This is the real risk. The current P/E is above 100x so there is no room for a miss. Embedded design wins take 2-4 years to show in revenue so partnership headlines run ahead of dollars. Another bear case is that one-off items inflate the trailing earnings. This could lead to earnings looking way better than they appear.

After digging in, I think this is more than a dead phone brand- but the next earnings report on June 25 is where we find out.

Disclosure : “I’m long BB.” Not financial advice- do your own work.