BlackBerry has raised its revenue forecast for fiscal 2027 following record revenue in its automotive and embedded software division, QNX, in the quarter, driven by new vehicle-program wins.
BlackBerry has increased its revenue outlook for the full-year fiscal 2027, following QNX’s record quarterly revenue, which boosts the company’s presence in the automotive and other embedded software sectors.
Total revenue was $163.3 million in the second quarter that ended Aug. 31, 2026, an increase of 26% from a year ago, the Canadian technology company said. The result beat the average estimate of analysts compiled by LSEG of $145.6 million.
The growth was primarily due to QNX. The division’s revenue grew 27% year over year to $80.3 million with an expanded adjusted gross margin of 87%. BlackBerry also saw a 41% rise in QNX adjusted EBITDA to $29 million.
BlackBerry’s QNX software is a component in safety-critical systems in vehicles and industrial applications. Automakers such as Audi, Daimler, General Motors, Hyundai and Mercedes-Benz utilize the company’s technology, the company states.
The trend towards software-defined vehicles is benefitting the business. The QNX software can be used for multiple vehicle applications such as digital cockpits, advanced driver-assistance systems and body-control applications. The platform’s being rolled out to additional parts of modern vehicles, CEO John Giamatteo told Reuters.
BlackBerry had previously forecasted fiscal 2027 revenue growth in a range of $594 million to $621 million, which now has been lowered to $616 million to $636 million. The company also upgraded its adjusted EBITDA forecast, driven by better-than-expected results in the first half.
Among the latest advances is a big QNX design win from Coretura, a partnership between the Volvo Group and Daimler Truck. BlackBerry said the commercial-vehicle program could result in over $100 million being added to the QNX royalty backlog, the largest announced by the company so far.
The numbers show the evolution of BlackBerry’s business from the smartphone era. It focuses on enterprise communications and base software, with QNX having a major presence in the automotive industry. Secure Communications revenue also grew, to $60.9 million for the quarter, BlackBerry said.
BlackBerry’s revenue forecast for the quarter is $143 million to $154 million. That’s compared with an analyst estimate of approximately $149.6 million, based on LSEG data cited by Reuters.
So, the company’s latest results draw more focus to QNX as it aims to grow in more software-centric vehicle designs. How quickly new vehicle programs are introduced into production will be significant in determining the speed of the current design wins to future royalty income.
