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Earnings analysis included today, at a glance:
BlackBerry (BB) Q2 FY2027
Costco (COST) Q4 FY2026
Cracker Barrel (CBRL) Q4 FY2026
General Mills (GIS) Q1 FY2027
Paychex (PAYX) Q1 FY2027
Cintas Corporation (CTAS) Q1 FY2027
Disclaimer: This analysis is for informational & educational purposes only and should not be construed as investment advice. Investors should conduct their own due diligence before making investment decisions. Past performance does not guarantee future results.
BlackBerry (BB) Q2 FY2027 Earnings Analysis
BlackBerry reported second-quarter results for the period ended August 31, 2026, and revenue jumped 26% to $163.3 million. Adjusted EPS of $0.07 beat a consensus of $0.04, and revenue topped an estimate of $143 million.
Management raised full-year guidance for the second straight quarter.
Revenue and Profitability
The quarter showed strong operating leverage. Adjusted EBITDA rose 81% to $47.0 million, and GAAP operating income climbed from $11.5 million to $33.6 million.
Q2 FY2027 (three months ended Aug 31, 2026)
Revenue: $163.3M vs $129.6M (+26%)
Adjusted EBITDA: $47.0M vs $25.9M (+81%)
GAAP net income: $33.9M vs $13.3M
Adjusted EPS: $0.07 | GAAP EPS: $0.06
MARGINS AND CASH
GAAP gross margin: 77.8% (74.5% a year ago)
Adjusted EBITDA margin: 29%
Operating cash flow: $29.3M (vs $3.4M)
Free cash flow: $28.1M (vs $2.6M)
Cash and investments: $447.1M
BlackBerry calls its result a “Rule of 40” performance and the claim holds true. The company has now also posted six straight quarters of positive GAAP net income.
Balance sheet: Cash and investments of $447.1 million against $197.1 million of long-term notes leave net cash near $250 million.
Buybacks: The company repurchased $10 million of shares in the first half.
QNX and the Alloy Kore Win
QNX, the embedded software unit, set a record with $80.3 million of revenue, up 27%. Segment adjusted EBITDA rose 41% to $29.0 million at a 36% margin.
QNX SEGMENT
Revenue: $80.3M (+27%)
Adjusted gross margin: 87% (+4 pts)
Adjusted EBITDA: $29.0M (36% margin)
Coretura, the joint venture between Volvo Group and Daimler Truck, chose Alloy Kore for its next-generation commercial vehicle software. Management says the win adds more than $100 million to the QNX royalty backlog and calls it the largest design win in QNX history.
The average selling price per Alloy Kore instance is roughly three times that of the customer’s current QNX deployment. Royalties need production lead time, so the deal is not expected to move revenue much this fiscal year.
OTHER PHYSICAL AI SIGNALS
Momenta and XHEART: QNX OS for Safety (ISO 26262 ASIL D)
Hailo-8 AI accelerator support added on SDP 8.0
Guidance, Secure Communications and Risks
The raised outlook is the main event. Full-year revenue guidance moved to $616 million to $636 million from $594 million to $621 million, and adjusted EPS guidance rose to $0.19 to $0.22.
FISCAL 2027 GUIDANCE
Revenue: $616M to $636M
Adjusted EBITDA: $141M to $158M
Adjusted EPS: $0.19 to $0.22
Operating cash flow: about $115M
QNX revenue: $315M to $325M
The third quarter will step down. Revenue is guided to $143 million to $154 million because Licensing revenue, which hit $22.1 million in Q2, should fall back to about $6 million.
Secure Communications is the soft spot. Revenue rose 2% to $60.9 million, but adjusted gross margin fell five points to 61%, and dollar-based net retention slipped to 91% from 93%.
Guidance cut: Full-year Secure Communications revenue is now $260 million to $270 million, with management citing geopolitical and trade uncertainty.
Lumpy licensing: Management cautioned against extrapolating Q2’s elevated licensing revenue.
Second-half math: First-half revenue of $316.2 million covers about half of the guidance midpoint.
Bottom Line for Investors
Why bulls are buying: Record QNX revenue, an 87% QNX gross margin, a $100M+ design win and two straight guidance raises
Best for: Investors seeking a profitable automotive software turnaround with a net cash balance sheet
Main risks: Secure Communications weakness, lumpy licensing, long royalty ramp for new wins, government timing
Catalysts: New Alloy Kore design wins, backlog conversion into royalties, Physical AI adoption
BlackBerry now looks like a business led by QNX, with Secure Communications playing a stable supporting role. The $950 million royalty backlog the CFO described has started to convert into revenue as customer programs reach production.
The next few quarters should show whether design wins turn into royalties on schedule.