Remember BlackBerry? The former mobile phone maker is surging on New York Stock Exchange, with stock recently trading around $11.05, up 6.9% on Friday, after a sharp post-earnings rally. US-listed shares jumped roughly 20% to 23% after the company released fiscal Q1 2027 results, pushing the company’s market capitalization to about $6.48 billion.
The move was not driven by nostalgia for BlackBerry phones. It was a bet that the company’s post-smartphone business is becoming more profitable, more predictable, and more exposed to markets investors are willing to value at a premium: software-defined vehicles, safety-certified operating systems, secure government communications, robotics, medical systems, industrial automation, and physical AI.
BlackBerry reported Q1 FY2027 revenue of $152.9 million for the three months ended May 31, 2026, up 26% year over year. Adjusted EBITDA rose 144% to $36.3 million, while operating income improved to $15.3 million. GAAP net income was $8.5 million, marking the fifth straight quarter of positive net income.
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The cleaner signal for investors was cash. BlackBerry generated $4.6 million in operating cash flow, which the company said was its first cash-positive fiscal first quarter in nine years, excluding the FY2024 patent sale. For a company long judged on turnaround promises, that matters more than headline revenue alone.
But the biggest reason for the surge is QNX. The segment revenue rose 26% year over year to $72.3 million in the quarter and QNX adjusted EBITDA rose 52% to $19.3 million. That makes the unit central to the bull case because it combines growth with software-like margin structure.
QNX is used in embedded, real-time, safety-critical systems. Its best-known market is automotive, where software-defined vehicles require more foundational software, operating systems, hypervisors, and safety-certified layers. But BlackBerry is also pitching QNX into robotics, medical devices, industrial systems, and AI-enabled edge infrastructure.
Aside from QNX, BlackBerry’s Secure Communications segment posted revenue of $73.6 million, up 24% year over year. Segment adjusted gross margin rose to 72%, and adjusted EBITDA increased 110% to $20.2 million. Annual recurring revenue was stable at $220 million, while dollar-based net retention was 92%.
Reuters reported that CFO Tim Foote said a vast majority of the secure communications business is government-related, with a significant portion of the pipeline also tied to government customers.
BlackBerry also raised its full-year FY2027 revenue outlook to $594 million to $621 million, up from its prior range of $584 million to $611 million. It now expects QNX revenue of $295 million to $312 million for the year. The company also guided for full-year adjusted EBITDA of $119 million to $139 million, non-GAAP EPS of $0.16 to $0.20, and operating cash flow of about $100 million.
The company repurchased 2.6 million shares for $10.0 million during the quarter and ended Q1 with $422.9 million in cash and investments.
At a market cap near $6.5 billion, BlackBerry is no longer being valued like a forgotten software cleanup trade. It is being priced more like a company with a credible path to recurring cash flow and higher-growth embedded software exposure.
