By Adriano Marchese
BlackBerry is targeting doubt-digit revenue growth in fiscal 2027, driven by its QNX real-time operating system segment, and is pushing the software into new markets beyond its automotive roots.
The Waterloo, Ontario-based company said Thursday that about 20% of QNX's revenue now comes from outside the automotive sector. Chief Executive John Giamatteo expects that share to grow as robotics and artificial intelligence-driven machines increasingly require the kind of real-time, safety-certified software.
BlackBerry, once known as the maker of the ubiquitous smartphones, has since shifted to a software and cybersecurity company. Its QNX operating system powers critical functions in cars, medical equipment, industrial robots and other systems where reliability is key.
"When you have that intersection between a machine and a human, that's when real-time operating systems, compute and safety types of use-cases really come to the forefront," Giamatteo said in an interview.
Giamatteo said the software is being designed into robots that work alongside humans in factories and in consumer households. In the fourth quarter, BlackBerry won a contract to supply the software to power Johnson & Johnson's AI-driven heart pump.
BlackBerry has a $950 million backlog of committed QNX contracts, mostly from the auto manufacturers that plan their technology years in advance, which the company said gives it visibility into future revenue even as near-term car sales face uncertainty from trade tensions and slowing consumer demand.
The QNX segment is expected to generate about $290 million to $307 million in fiscal 2027, supporting BlackBerry's full-year outlook of revenue to grow between $584 million and $611 million, up from $549.1 million in fiscal 2026, and ahead of analyst projections.
Shares trading in Toronto rose 10% to 5.38 Canadian dollars ($3.89).
The Secure Communications unit, which provides encrypted communications for governments, defense agencies and critical‑infrastructure organizations, is expected to generate revenue of $270 million to $280 million in fiscal 2027.
In its fourth quarter ended Feb. 28, BlackBerry recorded a 10% revenue growth to $156 million, beating forecasts, supporting net income of $24.3 million, or four cents a share, compared with a loss of $7.4 million, or one cent a share, in the comparable quarter a year ago.
For the current quarter, the company expects revenue of about $132 million to $140 million, above analyst projections of $129.4 million.
The company guides QNX first-quarter revenue to be between $60 million and $64 million, with analysts expecting $60.7 million. Secure Communications is projected to generate $66 million to $70 million in revenue, above analyst consensus expectations of $62.7 million.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 09, 2026 10:56 ET (14:56 GMT)
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