Blackberry Limited has released its financial results for the second quarter of fiscal year 2026, and the numbers show promising growth and improved profitability.
Here are the key financial highlights: Total company revenue stood at $129.6 million, marking a 3% year-over-year increase. Both GAAP and adjusted gross margins increased by 4 percentage points year-over-year to 75%. The QNX division achieved a 15% year-over-year revenue growth, beating guidance, with an adjusted gross margin of 83% and an adjusted EBITDA of $20.5 million, representing 32% of revenue. Secure communications revenue exceeded guidance at $59.9 million, even though it decreased by 10% year-over-year, with an adjusted gross margin of 66% and an adjusted EBITDA of $9.7 million. The company reported GAAP net income of $13.3 million and adjusted net income of $24.2 million, with GAAP basic earnings per share at $0.02 and non-GAAP basic earnings per share at $0.04, surpassing previously-provided guidance. Blackberry achieved a total company adjusted EBITDA of $25.9 million, or 20% of revenue, and a GAAP operating income of $11.5 million, marking sequential and year-over-year increases.
In addition to the financial performance, some notable business highlights and strategic announcements include the launch of QNX OS for Safety 8, collaborations with NVIDIA for autonomous drive systems, and the expansion of cybersecurity training initiatives in Malaysia.
Looking ahead, Blackberry has provided guidance for the third fiscal quarter and the full fiscal year 2026. The company expects total Blackberry revenue for the full fiscal year to range between $519 million and $541 million, with specific revenue guidance for the QNX and secure communications divisions, as well as adjusted EBITDA and non-GAAP basic EPS expectations.
Following these announcements, the company's shares moved 4.11%, and are now trading at a price of $4.4453. For more information, read the company's full 8-K submission here.
