BlackBerry Ltd. shares climbed more than 3% in premarket trading on Monday, June 29, 2026, after the company reported fiscal first-quarter earnings that surpassed Wall Street expectations.
The beat prompted several analysts to raise their price targets on the stock.
Strong Financial Results
Revenue surged 26% year-over-year to $152.9 million, outperforming the consensus estimate of $139.8 million.
Adjusted earnings per share came in at four cents, beating the expected three cents.
Operating cash flow turned positive at $4.6 million, marking the first time in nine years the software business achieved this milestone.
Management subsequently raised its full-year revenue guidance to between $594 million and $621 million.
Analysts responded positively.
RBC analyst Paul Treiber doubled his price target to $9, stating BlackBerry is emerging from its turnaround phase into a growth era.
CIBC raised its target to $13, calling the performance excellent as both QNX software and Secure Communications segments exceeded projections despite a slower season.
TD Securities lifted its target to $8, highlighting potential benefits from physical artificial intelligence applications.
Canaccord Genuity increased its target to $10.30 due to improving profitability margins.
“They no longer make smartphones.
[BlackBerry is] a household name and the pivot has gone well,” said Kingsley Crane, managing director at Canaccord Genuity.
The company has focused on transforming its business model away from mobile hardware over the past several years.
“I think it’s taken some time, and there’s been fits and starts, and there has been some strategic changes along the way,” Crane added.
A primary driver of this transition is its QNX software, which provides safety-certified operating architecture for automotive and industrial systems.
“It’s widely deployed in automotives.
A lot of times it’s not as visible … but it’s critical to establishing safety in the vehicle,” Crane said.
The platform functions behind the scenes to run digital instrument clusters and vehicle console screens.
“Everything in terms of an infotainment centre, console or music console, that’s all built on top of QNX’s capabilities, which focuses on safety,” he explained.
The latest financial results marked the first quarter in nine years that the software business generated positive operating cash flow.
“I think the market is telling you that they’re back,” Crane said.
The company's software transformation has driven an ongoing stock market rally, gaining over 170% year-to-date.
“I think there’s a lot of excitement from the general public, whether or not they necessarily own BlackBerry,” Crane noted.
In addition to automotive software, BlackBerry expanded its cybersecurity presence through service contracts with the Canadian federal government.
“The public is realizing that BlackBerry is deployed in many places that you might not see as visible as a smartphone.
So yeah, it’s certainly back,” Crane said.
“I think that the future is bright for the company,” he concluded.
