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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11BlackBerry’s comeback is a business turnaround built around automotive software and secure communications—not a return to consumer smartphones. In the quarter ended August 31, 2026, the company reported $163.3 million in revenue, up 26% year over year, with QNX automotive software providing the strongest segment growth. But the picture is uneven: Secure Communications grew slowly, and its full-year outlook was cut.
What is BlackBerry’s comeback plan?
BlackBerry has repositioned itself from the handset business that made its name toward foundational software for automakers and industrial companies, alongside secure communications products for enterprise and government customers. Its current financial reporting divides the business into QNX, Secure Communications and Licensing. The company’s corporate description reflects that software-and-services focus.
That distinction matters if you are asking whether BlackBerry still makes phones. The latest company positioning and financial reports do not establish a consumer smartphone relaunch. The comeback story is about whether its software businesses can grow profitably, not whether its old handset business returns.
How did BlackBerry perform in its latest reported quarter?
For Q2 FY2027, the three months ended August 31, 2026, BlackBerry reported total revenue of $163.3 million, up 26% year over year. It also reported GAAP net income of $33.9 million and operating cash flow of $29.3 million. Adjusted EBITDA was $47.0 million, a non-GAAP measure. These figures were announced September 24, 2026; see the earnings release and financial reports.
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| Business | Q2 FY2027 revenue | Year-over-year change | What it indicates |
|---|---|---|---|
| QNX | $80.3 million | Up 27% | Record quarterly revenue and the clearest growth engine in the quarter. |
| Secure Communications | $60.9 million | Up 2% | Positive but slower growth; adjusted gross margin was 61%, down five percentage points year over year. |
| Licensing | $22.1 million | Not stated | A strong quarter, partly reflecting a new intellectual-property arrangement; larger deal timing and size can vary. |
The company said Q2 was its second consecutive Rule of 40 quarter. BlackBerry defines that company metric as GAAP revenue growth percentage plus non-GAAP adjusted EBITDA margin percentage; it is a company-defined measure, not a standalone guarantee of durable growth.
Why QNX is central to the turnaround
QNX supplies foundational software used in vehicles and other embedded systems. Its recent growth is supported by design wins and royalty opportunities, which provide more concrete evidence of the strategy than a broad promise of a comeback. BlackBerry reported FY2026 QNX revenue of $268.0 million, up 14% year over year, and said QNX technology was embedded in more than 275 million vehicles worldwide. Those are company-reported figures, not independent market estimates.
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Coretura’s Alloy Kore selection
BlackBerry says Coretura—the joint venture between Volvo Group and Daimler Truck—selected QNX’s Alloy Kore for a next-generation commercial vehicle software platform. BlackBerry calls it the largest QNX design win and says it adds more than $100 million to QNX royalty backlog. That backlog addition is a company-reported commercial milestone; it is not the same as revenue already earned.
Other automotive and software signals
BlackBerry also said QNX would be integrated into BMW Group’s next-generation Neue Klasse software-defined vehicle architecture, and that QNX and Haleytek were selected to enable software-defined audio for Volvo Cars’ EX60. QNX also released broader safety hypervisor capabilities. Taken together, the announcements show activity across vehicle platforms and adjacent automotive software, but do not by themselves establish how much revenue each will generate or when.
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Where the comeback is less certain
Secure Communications is growing more slowly
Secure Communications revenue rose 2% year over year to $60.9 million in the quarter, while its adjusted gross margin fell to 61%, five percentage points lower than a year earlier. BlackBerry lowered its FY2027 revenue outlook for this division to $260–$270 million, citing greater caution about certain government opportunities in the second half. That makes procurement timing a material risk to this part of the plan.
There are also product developments in this business: BlackBerry reported that SecuSUITE renewed NIAP Common Criteria certification and that AtHoc added Microsoft Teams and Entra ID integrations in Q2 FY2027. These are enterprise and government communications offerings, not retail consumer products.
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Licensing can make results lumpy
Licensing contributed $22.1 million in Q2 FY2027, partly because of a new intellectual-property arrangement. BlackBerry’s SEC filing cautions that the timing and size of larger licensing transactions can vary, so one strong quarter should not be treated as a recurring run rate.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What BlackBerry expects for FY2027
As of September 24, 2026, BlackBerry forecast FY2027 revenue of $625–$655 million and adjusted EBITDA of $141–$158 million. These are management estimates, not achieved results. The outlook differs by business:
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| Business or measure | FY2027 outlook as of September 24, 2026 | Context |
|---|---|---|
| Total revenue | $625–$655 million | Company forecast. |
| Adjusted EBITDA | $141–$158 million | Company forecast; non-GAAP measure. |
| QNX revenue | $315–$325 million | Outlook raised. |
| Secure Communications revenue | $260–$270 million | Outlook lowered amid caution about certain government opportunities. |
| Licensing revenue | Approximately $41 million | Outlook raised following stronger first-half licensing revenue. |
The contrast is important: management raised QNX guidance and increased the Licensing outlook after stronger first-half revenue, while reducing the Secure Communications forecast. The overall growth outlook therefore depends on both execution in QNX and the timing of less predictable licensing and government business.
Is BlackBerry making money again?
In the reported quarter, yes: BlackBerry recorded $33.9 million of GAAP net income, and the company said it had posted positive GAAP net income for six consecutive quarters as of Q2 FY2027. That is evidence of a return to quarterly GAAP profitability, though it does not establish that future earnings will be steady. Adjusted EBITDA of $47.0 million is a separate non-GAAP measure and should not be confused with net income.
CEO John J. Giamatteo said in the September 24, 2026 earnings release, “Our strong second quarter performance provides further evidence that BlackBerry’s profitable growth model is working, with revenue, profitability, and cash flow generation all exceeding our expectations.” That is management’s assessment. The quarter’s slower Secure Communications growth, declining segment adjusted gross margin and reduced division outlook are relevant counterweights.
How to judge whether the turnaround is working
For investors or readers following the company, the useful test is not the word “comeback” but whether reported performance and commercial milestones continue to support it. Watch for:
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- Whether Secure Communications can improve growth and margins, and whether government opportunities arrive on the expected schedule.
- Whether Licensing revenue remains episodic or becomes a more consistent contributor; the company warns that larger transactions vary in timing and size.
- Whether BlackBerry meets or revises its FY2027 outlook, keeping actual results separate from guidance.
- Whether GAAP net income and cash generation continue, rather than relying only on non-GAAP adjusted measures.
BlackBerry’s reported results support a real software-led growth effort, particularly in QNX, alongside renewed profitability. They do not support a consumer-phone comeback, and the slower Secure Communications business and variable licensing revenue leave execution risks in the plan.
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