BlackBerry Limited (NYSE:BB; TSE:BB) shares surged 8.6% to $12.39 in Monday’s regular session, trading on above-average volume over the past 65 days. The stock’s five-day advance has added approximately $2.1 billion in market capitalization, dwarfing the $10 million increase in the midpoint of the company’s fiscal 2027 revenue guidance.
The rally comes as investors focus on the potential of BlackBerry’s QNX software platform and Secure Communications business. The company reported first-quarter revenue of $152.9 million, up 26% year-over-year, with adjusted EBITDA surging 144% to $36.3 million. QNX revenue rose 26% to $72.3 million, while Secure Communications climbed 24% to $73.6 million. GAAP net income remained positive for the fifth consecutive quarter at $8.5 million.
CEO John J. Giamatteo said the “foundation of the business is stronger than it has been in years,” noting that QNX customers are increasingly moving toward next-generation software-defined vehicles. CFO Tim Foote highlighted that Secure Communications revenue and pipeline are heavily tied to government clients.
Despite the strong operational results, the stock’s valuation is drawing scrutiny. At Monday’s close, buying back all 26.8 million shares authorized under the company’s repurchase program would cost approximately $332 million, consuming nearly 79% of the $422.9 million in cash and investments on hand at the end of May. This compares with the $10 million spent to repurchase 2.6 million shares in the first quarter at an average price of $3.85 per share.
Analyst price targets are lagging the current share price. According to Google Finance, the average 12-month target among six analysts is $10.30, well below Monday’s close. The highest target is $13 from CIBC’s Todd Coupland, while the lowest is $8 from TD Cowen’s John Shao. Four analysts rate the stock as Hold, with two rating it Buy.
Morningstar’s William Kerwin described QNX and Secure Communications as small on revenue but with “solid growth runways,” noting that QNX is gaining momentum as the automotive industry shifts to software-defined vehicles.
The market’s enthusiasm is reflected in the stock’s 40.9% gain over the past week, far outpacing the 1.7% increase in the midpoint of the FY27 revenue guidance. The company now expects revenue of $594 million to $621 million, up from $584 million to $611 million. For the second quarter, BlackBerry guided revenue of $137 million to $148 million and adjusted EBITDA between $20 million and $30 million.
BlackBerry’s shares hit a 52-week high of $12.46 during Monday’s session, with the day’s range spanning $11.31 to $12.46. The NYSE will remain open for regular trading through the week, with the next U.S. market closure set for July 3 for Independence Day observance. In Canada, TMX will close on July 1 for Canada Day.
