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Automotive Software · BlackBerry · QNX · Revenue Growth
RBC projects BlackBerry's fiscal 2027 revenue guidance at $565 million to $585 million, representing 6% to 9% growth, primarily driven by its QNX automotive operating system, which RBC expects to see 11% to 19% operating-software revenue growth.
RBC models adjusted EBITDA of $108 million to $120 million for fiscal 2027, attributing this improvement to higher-margin software scaling. For the upcoming fiscal Q4 earnings report, RBC anticipates approximately $142 million in revenue, flat year-over-year, and adjusted EPS of $0.05, with QNX growing around 12% despite softer auto production.
The bank emphasizes that QNX's connection to long vehicle design cycles provides steadier, higher-margin revenue compared to hardware exposure, strengthening the case for BlackBerry's shift towards stickier software cash flows. RBC also noted that improving free cash flow supports larger share buybacks, which can bolster per-share results during the top-line rebuilding phase.
Despite the positive outlook for QNX, RBC maintains a "Sector Perform" rating and a $4.50 price target, framing the situation as a gradual rebuild rather than a rapid recovery.
