BlackBerry lifts revenue outlook as QNX automotive software growth accelerates

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BlackBerry QNX revenue outlook

Highlights

BlackBerry QNX division revenue rises 27% to $80.3 million in Q2 ended August 31, setting a quarterly record driven by automotive software demand.
BlackBerry raises full-year 2027 revenue guidance to $616 million–$636 million and reports Q2 total revenue of $163.3 million, beating analysts’ estimate of $145.6 million.
Coretura, a Volvo Group and Daimler Truck joint venture, selects QNX software for commercial vehicles in a deal adding over $100 million to QNX's royalty backlog.

QNX growth drives higher annual forecast

As reported by Reuters, BlackBerry says revenue at its QNX division rises 27% to $80.3 million in the second quarter ended August 31, setting a quarterly record for the business. The unit develops software for safety-critical systems used in vehicles, robotics, medical devices and industrial applications, with Audi, General Motors, Hyundai and Mercedes-Benz among automakers using QNX.

Automotive remains the core of BlackBerry's business, and the company says the shift toward software-defined vehicle architectures is expanding both the number of addressable vehicles and the amount of QNX software deployed in each vehicle. CEO John Giamatteo tells Reuters that QNX is being deployed across digital cockpit, advanced driver assistance and body-control applications, helping support growth across multiple domains in the car.

The company now expects full-year 2027 revenue of $616 million to $636 million, up from its prior forecast of $594 million to $621 million. BlackBerry also says second-quarter total revenue reaches $163.3 million, above analysts' estimates of $145.6 million compiled by LSEG, while its third-quarter revenue forecast of $143 million to $154 million brackets the consensus estimate of $149.6 million.

Commercial vehicle win adds to backlog momentum

BlackBerry says Coretura, a joint venture between Volvo Group and Daimler Truck, selects QNX software for its next-generation commercial vehicles. The company says the agreement could add more than $100 million to QNX's royalty backlog and marks the largest QNX contract in its history.

The latest results reinforce investor optimism around BlackBerry's software operations as the company deepens its exposure to automotive technology. Shares of the Waterloo, Ontario-based company have more than doubled so far this year, reflecting market expectations that design wins and broader software content per vehicle can support further growth.

Our earlier report on Europe’s August car registrations highlighted how electrified models are driving market growth, with battery-electric, plug-in hybrid and hybrid vehicles accounting for more than 73% of new registrations. We also noted that the same shift is reshaping competition, as Chinese automakers increased their market share across the EU, UK and EFTA amid weaker demand for petrol and diesel cars.

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