BlackBerry Limited (NYSE: BB; TSX: BB) has reported its financial results for the first quarter of fiscal year 2026, and the figures show notable improvements and successes for the company.
In terms of revenue, the total company exceeded its previously-provided guidance, reaching $121.7 million, while the gross margin stood at 74% and non-GAAP gross margin at 75%. The QNX division saw a significant 8% year-over-year growth, achieving $57.5 million in revenue, with an impressive 81% gross margin. Furthermore, the QNX division's adjusted EBITDA surpassed the guidance, reaching $12.7 million, or 22% of revenue.
The Secure Communications division also outperformed, with revenue exceeding guidance at $59.5 million. The division's adjusted gross margin increased by 6 percentage points sequentially and 4 percentage points year-over-year to 70%. The adjusted EBITDA for the Secure Communications division also exceeded the previously provided guidance, amounting to $9.6 million.
BlackBerry achieved GAAP profitability for the first time since Q4 FY22, with net income of $1.9 million and non-GAAP net income of $12.3 million. Additionally, the company returned $10 million to shareholders through a share buyback program, repurchasing 2.57 million common shares during the quarter.
Looking ahead, BlackBerry has provided guidance for the second fiscal quarter and the full fiscal year 2026. The company expects total BlackBerry revenue for the full fiscal year to be in the range of $508 million to $538 million, with anticipated QNX revenue of $250 million to $270 million and Secure Communications revenue of $234 million to $244 million.
These figures demonstrate a strong start to the fiscal year for BlackBerry, with both the QNX and Secure Communications divisions exceeding expectations and achieving significant growth in various financial metrics. Following these announcements, the company's shares moved 0.23%, and are now trading at a price of $4.33. If you want to know more, read the company's complete 8-K report here.
