Canadian technology company BlackBerry has reported positive net earnings for four consecutive quarters.Andrew Ryan/The Canadian Press
BlackBerry Ltd. BB-T has become nearly invisible to consumers, and investors seem to like it that way.
The share price has been on a tear over the past month, since the Canadian technology company – formerly Research In Motion Ltd., back in the days when it made ubiquitous BlackBerry smartphones – delivered quarterly financial results that suggest there may be something better than visibility: stability.
In place of volatile earnings and revenues, BlackBerry is now delivering consistent performance thanks largely to its QNX division, which makes software embedded in 275 million vehicles worldwide (BlackBerry also operates a cybersecurity division).
Total revenues have been improving for three consecutive quarters, rising by 10 per cent in the fiscal fourth quarter, year-over-year – and 20 per cent at QNX. BlackBerry has reported positive net earnings for four consecutive quarters, also underscoring that a rebound may be gaining momentum.
John Wall takes the wheel at BlackBerry’s QNX car software unit
Consistency makes the stock easier to value with common financial metrics, such as the price-to-earnings ratio, and adds some confidence to financial projections for the year ahead.
“BlackBerry’s turnaround is complete and we are now firmly focused on growth and value creation,” BlackBerry’s chief executive officer John Giamatteo said during a conference call with analysts in April.
It is not uncommon for executives to mix up fanciful dreams with actual accomplishments. But in this case, Mr. Giamatteo’s words have gained some traction in the stock market.
The share price, which had meandered as low as $4.38 in late March before the earnings announcement in April, has surged to a high of $8.51 as of midday Friday – for a gain of nearly 95 per cent in just six weeks.
The Wall Street Journal has taken notice of BlackBerry’s turnaround, with a warm profile of the company earlier this month.
It’s no small feat for a Canadian company valued at just $4.8-billion, based on the combined value of its outstanding shares, to attract mainstream attention in a crowded U.S. tech landscape that includes giants like Nvidia Corp., Apple Inc. and Microsoft Corp.
Sure, there’s a novelty factor at play here.
Hey, remember the old BlackBerry devices with physical keyboards? Well, the same company is now responsible for the hidden software in millions of cars, providing collision avoidance, adaptive cruise control and more. A once-floundering company is back with a second act.
But the stock’s spectacular gains raise the question of how far this second act can go.
Blackberry CEO John J. Giamatteo rings the opening bell at the New York Stock Exchange in August, 2025.Jeenah Moon/Reuters
It’s a fair question, given the number of false starts over the years. The share price soared 150 per cent over a four-month period starting in late 2024, only to slide 46 per cent over the next 12 months as earnings remained volatile and investor enthusiasm fizzled.
For what it’s worth, the current share price is brushing against the most bullish forecasts from analysts – US$6 (around $8.2), from Todd Coupland at CIBC Capital Markets – which suggests that investor excitement may be running ahead of the more sober approach of number crunchers.
The good news is that the bullish case rests on consistency rather than a stunning rebound that will return the company to its loftier days.
The share price peaked at $149.90 in 2008, when BlackBerry was still the go-to name in wireless communication devices and annual revenue was climbing toward a high point of US$19.9-billion by 2011.
Former smartphone titan BlackBerry is back, with a new CEO and autonomous driving tech at the wheel
Today, BlackBerry has shed billions for millions.
For all of fiscal 2026 (the company’s year ended Feb. 28), BlackBerry reported total revenues of US$549.1-million. This year, fiscal 2027, it expects to generate total revenues of US$584-million to US$611-million, implying year-over-year growth of between 6 per cent and 11 per cent.
Ho-hum? You bet.
And that’s okay, because BlackBerry has reached the point in its turnaround where confidence in the company’s ability to deliver on its goals may be the primary driver of investor sentiment.
More valuation metrics now make sense. A standout: The stock has an estimated price-to-earnings ratio of 27, according to S&P Global Market Intelligence.
That’s not cheap. But nor is it crazy, and it gives investors something to chew on as the company moves forward with a solid backlog of orders within QNX, valued at US$950-million. As well, Mr. Coupland believes that the company’s forecasts are conservative.
Better-than-expected financial results should keep investor sentiment brewing nicely, and justify the lofty valuation.
Holding on to BlackBerry shares during rallies has frequently tested the nerves of investors. But this one rests on something far more solid than hopes and dreams: actual earnings and attractive growth.