BlackBerry Stock Jumps 8.8% on Strong Q2 Earnings Beat
The company reported a second consecutive quarter of profitability and raised its full-year guidance, signaling a positive turnaround.
BlackBerry Limited (BB) shares surged 8.8% after the company announced strong second-quarter fiscal year 2026 results, beating analyst expectations and marking its second consecutive quarter of profitability. The Canadian technology firm reported adjusted earnings of $0.04 per share, significantly outpacing the Zacks Consensus Estimate of $0.01 per share.
The positive market reaction was fueled by a that showed a promising turnaround for the once-dominant smartphone maker, which has since pivoted to software and security services. Total revenue for the quarter reached $129.6 million, a notable increase from $126.2 million in the same period last year. The company's net income was $13.3 million, or $0.02 per share on a diluted basis, a stark contrast to the net loss of $19.7 million reported in the prior-year quarter.
BlackBerry's Internet of Things (IoT) segment, powered by its QNX software, was a key growth driver, with revenue climbing 15% year-over-year to $63.1 million, largely due to strong royalty payments. The Secure Communications division, which includes the company's cybersecurity offerings, also performed well, with revenue of $59.9 million exceeding the high end of the company's guidance for the quarter.
In a move that further bolstered investor confidence, BlackBerry's management . The company now expects full-year revenue to be in the range of $519 million to $541 million, up from its previous forecast of $508 million to $538 million. Adjusted earnings per share guidance was also revised upward to a range of $0.11 to $0.15, from an earlier projection of $0.08 to $0.10 per share.
Recent strategic moves have also played a role in BlackBerry's improved financial position. The company recently completed the sale of its Cylance endpoint security assets, which resulted in a pre-tax gain of $10.4 million. Additionally, BlackBerry has been actively repurchasing its shares, buying back 7.6 million common shares for $30.0 million under its current buyback program. , a move that is typically accretive to earnings per share.
Looking ahead, BlackBerry has provided a positive outlook for the third quarter, with revenue expected to be between $132 million and $140 million, and earnings per share forecasted to be in the range of $0.02 to $0.04. The strong Q2 performance and optimistic guidance suggest that BlackBerry's strategic pivot to software and security is gaining traction, providing a solid foundation for future growth.