BlackBerry Raises Full-Year Revenue Forecast on Record Automotive Software Sales

BlackBerry on Thursday raised its full-year revenue forecast, citing record performance in its QNX automotive software business as the auto industry's shift toward more complex, software-driven vehicles accelerates. The upbeat outlook sent the company's U.S.-listed shares up approximately 3% in premarket trading.

Record Quarter for QNX

For the second quarter ended August 31, BlackBerry reported total revenue of $163.3 million, surpassing analysts' consensus estimate of $145.6 million, according to LSEG data. The outperformance was largely driven by its QNX division, which provides software for critical systems in vehicles and other industries.

Revenue from the QNX unit surged 27% year-over-year to a record $80.3 million. CEO John Giamatteo told Reuters that the growth stems from QNX software being deployed across multiple vehicle systems, including digital cockpits, advanced driver assistance, and body-control applications. "We’re supporting all the different domains of the car. That’s one of the reasons why we’re seeing some of the explosive growth," Giamatteo said.

Upgraded Outlook and Major Contract Win

Buoyed by the strong demand, BlackBerry now expects full-year 2027 revenue to be between $616 million and $636 million. This is an increase from its previous forecast of $594 million to $621 million.

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Underscoring this momentum, the company announced its largest QNX contract to date with Coretura, a joint venture between Volvo Group and Daimler Truck. The deal, which will see QNX software used in next-generation commercial vehicles, is expected to add more than $100 million to QNX's royalty backlog. For the upcoming third quarter, however, BlackBerry projects revenue between $143 million and $154 million, with the midpoint slightly below the analyst consensus of $149.6 million.

Context for Investors

BlackBerry's performance highlights the growing importance of software in the automotive sector, a trend often referred to as the shift to the software-defined vehicle (SDV). As cars become more connected and autonomous, the value of the underlying software platform increases, expanding the market for companies like BlackBerry.

The company's QNX software is already used by major automakers including Audi, General Motors, Hyundai, and Mercedes-Benz. The new Coretura deal demonstrates QNX's expanding footprint from passenger cars into the commercial vehicle segment, further diversifying its revenue streams within the automotive vertical.