Why BlackBerry Stock Soared This Week

Yahoo

a day ago

BlackBerry reported its latest earnings this week, beating Wall Street targets.
The company's automotive software showed strong growth, and its secure communications segment continues to deliver.
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Shares of BlackBerry (NYSE: BB) jumped this week, up 9% as of 1:22 p.m. ET on Friday. The rise comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq-100 gained 3.6% and 4.4%, respectively.
The company, which has reinvented itself as a software provider, released its Q1 2026 (ended May 31) financial results, beating consensus estimates for most metrics and setting rosy guidance.
BlackBerry reported better-than-expected Q1 2026 results earlier this week. The company's first-quarter earnings per share (EPS) came in at $0.02, $0.02 over consensus estimates. While revenue declined 1.4% year over year (YOY), the $121.7 million in sales still topped estimates.
BlackBerry's QNX automotive software -- a sort of operating system for cars -- is seeing stronger-than-expected growth, up 4% YOY to $57.5 million. On the strength of its QNX sales and growth in its secure communications segment, the company raised its overall 2026 revenue forecast to between $508 million and $538 million.
In a statement, CEO Brian John J. Giamatteo said of the quarter, "Both our QNX and Secure Communications divisions continue to execute effectively against their strategies, beating both top line and profitability expectations."
In the years since the company's "crackberries" dominated the smartphone market, the company has worked to reinvent itself, ditching device-making for software. Things look to be paying off as the company shrinks its net loss and approaches profitability. Still, there's a decent amount of hype built in, and its stock is too expensive at the moment for my taste.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.
Why BlackBerry Stock Soared This Week was originally published by The Motley Fool