BlackBerry raises 2026 revenue outlook on cybersecurity demand

BlackBerry raised the lower end of its fiscal 2026 revenue outlook, citing higher demand for its cybersecurity software as businesses increase spending to address complex cyber threats.

The company now expects annual revenue between US$531 million and US$541 million, up from its earlier forecast of US$519 million to US$541 million.

BlackBerry reported Q3 revenue of US$141.8 million for the period ending November 30, beating analyst estimates of US$137.4 million.

Its QNX division, which provides embedded software for automotive systems, reported a 10% rise in revenue to US$68.7 million.

For Q4, BlackBerry projects revenue between US$138 million and US$148 million, with the midpoint of US$143 million in line with analyst estimates of US$143.4 million.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Raised guidance masks weakness in Secure Communications retention

BlackBerry raised revenue guidance, yet Secure Communications (the company’s cybersecurity and secure-messaging unit) posted a 92% dollar-based net retention rate 1. This metric tracks revenue from existing customers over time; below 100% means downsizing or churn, not expansion.
Secure Communications revenue fell to $67.0 million year over year despite beating guidance 1. Adjusted gross margin also fell from the prior year 1, which hints at pricing pressure or a tougher customer mix even as new deals land.
Guidance likely leans on QNX’s 10% growth 1. Operating cash flow was $17.9 million 1, which is still small next to Secure Communications Annual Recurring Revenue (ARR) of $216 million 1.

QNX in 275 million vehicles opens channels for automotive software vendors

QNX runs in more than 275 million vehicles 2. Leading Original Equipment Manufacturers (OEMs) plus Tier 1 suppliers (major component makers that sell directly to automakers) use it 2. Examples include BMW, Bosch, and Continental 2. Others include Geely, Honda, and Hyundai 2. The list also spans Mercedes-Benz and Toyota 2. It also covers Volkswagen and Volvo 2. Middleware makers plus app developers can target this installed base for over-the-air update platforms (remote software updates), advanced driver assistance features, and vehicle-to-cloud connectivity solutions (linking cars to cloud services for data plus updates).
An 84% adjusted gross margin 1 helps QNX attract cybersecurity partners. Its reach across top automotive brands 2 gives vendors a path to embed endpoint protection (security software embedded on the device itself) inside the QNX architecture as vehicles become more connected.