BlackBerry Ltd. stock fell more than 11% Thursday as investors locked in profits following a massive rally driven by strong quarterly earnings. The company reported fiscal first-quarter 2027 results that beat Wall Street expectations, initially sending shares up nearly 20% to close at $10.32 on June 25. The stock extended those gains in subsequent sessions as several analysts raised their price forecasts. Despite the recent pullback, the stock remains in a strong longer-term uptrend, trading 125.1% above the 200-day SMA of $5.01.

Financial Performance Exceeds Estimates

BlackBerry reported first-quarter revenue of $152.9 million, marking a 26% year-over-year increase. This total beat the consensus estimate of $138.19 million. Adjusted EPS came in at 4 cents versus the Street estimate of 3 cents, and adjusted EBITDA reached $36.3 million. The company achieved its fifth consecutive quarter of positive GAAP net income, reaching $8.5 million. This performance marked BlackBerry's first cash-positive fiscal first quarter in nine years, excluding the patent sale in fiscal year 2024, with operating cash flow of $5 million.

Segment Performance

Both the QNX and Secure Communications segments achieved Rule of 40 performance. The QNX division led the quarterly upside, with revenue rising 26% year-over-year to $72.3 million. During the earnings call, management reported that development license revenue reached its highest level in eight quarters. Secure Communications revenue grew 24% to $74 million, driven by government demand for cybersecurity modernization and digital sovereignty. The Licensing segment reported revenue of $7 million.

Strategic Developments

The company expanded its collaboration with Nvidia Corp to advance safety-critical edge AI across robotics, medical, and industrial systems. BlackBerry also released QNX Hypervisor 8.0 for Safety and announced that Leapmotor selected its QNX Software Development Platform 8.0 for a premium electric SUV. Additionally, the company entered a strategic collaboration with TKMS for Canada's submarine program and renewed its normal course issuer bid share buyback program.

Analyst Reactions and Outlook

Following the earnings, RBC Capital Markets analyst Paul Treiber maintained a Sector Perform rating and raised the price forecast from $4.50 to $9. Treiber highlighted that BlackBerry traded at 9.6 times next-twelve-month EV/sales, positioning the company near the top of its five-year range. Canaccord Genuity analyst Michael Walkley maintained the stock with a Hold rating and raised the price target from $8.2 to $10.3. CIBC analyst Todd Coupland maintained BlackBerry with an Outperformer rating and raised the price target from $10 to $13.

For the full fiscal year ending February 28, 2027, the company anticipates total revenue of $594 million to $621 million and adjusted EBITDA of $119 million to $139 million. The company also raised its adjusted EPS guidance range to $0.16-$0.20.

BlackBerry ended the quarter with $423 million in cash and investments and repurchased 2.6 million shares for $10 million during the period.

BlackBerry Ltd shares are trending higher and hitting 52-week highs as traders weigh an upbeat analyst update that pointed to a stronger-than-expected start to the fiscal year. RBC Capital Markets raised its price target to $9 from $4.50, citing the company’s biggest beat in the last year, driven primarily by strength in its QNX segment. The stock hit new 52-week highs of $13.59 on Wednesday before pulling back to trade up 0.87% at $12.76 at the time of publication.

First-Quarter Performance

BlackBerry reported first-quarter revenue of $152.9 million, up 26% year over year. This figure surpassed RBC’s estimate of $135.9 million and the consensus estimate of $137.8 million. Adjusted EBITDA came in at $36.3 million, well ahead of RBC’s $19.6 million estimate, while adjusted EPS was 4 cents versus the Street’s 3 cents. RBC noted this was BlackBerry’s strongest quarterly beat since the first quarter of FY26.

QNX Segment Drives Growth

The upside was led by the QNX segment, where revenue rose 26% year over year to $72.3 million. This exceeded RBC’s estimate of $62.1 million and consensus of $63.0 million. The strength came from development seat licenses, professional services, and royalties, with development seat license revenue reaching its highest level in eight quarters. RBC also pointed to continued design wins in automotive and GEM, along with management’s expectation for the first Alloy Kore design win this fiscal year.

Valuation and Technical Levels

RBC noted that BlackBerry is trading at 9.6x next-twelve-month EV/sales, near the top of its five-year range and at a 112% premium to auto-tech peers. The firm raised its FY27 revenue forecast to $621 million from $598 million and its adjusted EBITDA estimate to $139 million from $120 million. However, RBC maintained its Sector Perform rating, arguing that further upside requires faster sustained growth, particularly in QNX.

Technically, the stock is up 192.62% over the past 12 months and is trading above all key moving averages. Key resistance sits at $12.93, a prior 52-week high zone, while support aligns with the 20-day SMA at $9.84. The RSI is at 79.21, indicating the stock is firmly overbought.