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BlackBerry Limited BB reported fourth quarter of fiscal 2025 non-GAAP earnings per share (EPS) of 3 cents. The figure was better than the company’s estimate of a loss of 1 cent to EPS of 1 cent. In the year-ago quarter, it reported a non-GAAP EPS of 3 cents. The Zacks Consensus Estimate was pegged at 2 cents per share.
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Quarterly total revenues were $141.7 million compared with the prior-quarter revenues of $152.9 million. Although the top line beat management’s guidance ($126-$135 million), the year-over-year contraction resulted from soft sales across all its revenue segments.
Management projects volatility in the automotive sector to weigh on its 2026 guidance. Supply-chain challenges and macroeconomic uncertainty are added woes. BB anticipates that the potential impact of DOGE and other parts of the administration in the United States and changes in governments in Canada, Germany and other regions could affect Secure Communications' revenues.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
Total revenues for fiscal 2026 are expected to be between $504 million and $534 million. For the Secure Communications division, revenues are anticipated to be between $250 million and $270 million. Revenues are estimated to be in the band of $230-$235 million for the QNX business. Licensing & Other revenues are expected to be around $24 million. Non-GAAP loss per share (includes continued and discontinued operations) is expected to be between 8 cents and 10 cents.
Following weaker-than-anticipated revenue guidance, BB’s shares tumbled 9.12% and closed at $3.39 yesterday. Shares also sank 6.2% in today’s pre-market trading. The stock has gained 20.7% in the past year compared with the Zacks Internet-Software industry’s growth of 10.7%.
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BB’s Fiscal Q4 in Details
Revenues from the QNX business totaled $65.8 million, marginally down from $65.9 million in the prior year quarter. Revenues exceeded the company’s guidance of $60-$65 million. During the quarter, the company continued its design win momentum in the core digital cockpit and ADAS. Strong multi-year secular trends are likely to shape QNX’s performance.
Secure Communication revenues were $67.3 million, down from $71.6 million in the prior year quarter, owing to tougher year-over-year comparison. The figure, however, exceeded expectations ($62-$66 million), driven by strong AtHoc revenues and renewals in core GermanMarket. Healthy momentum in UEM stemmed from rising deal wins from government agencies, top banks and law firms.
Secure Communications ARR rose 3% year over year to $208 million.
Licensing revenues surpassed guidance of $4 million, reaching $8.6 million, powered by stronger-than-anticipated sales from pre-existing arrangements.