BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.

BlackBerry appears to be a company with improved operational resilience, but it still has an expensive valuation relative to the quality of its earnings. Its main strength is a very high gross margin of 76% and its stability over the years, which points to high-quality revenue and a good cost structure. Also positive are the low debt/equity ratio of 0.26, the growth in shareholders’ equity, and a comfortable current ratio of 2.20, meaning the balance sheet overall does not look overburdened with debt. At the same time, the quick ratio is 0.00, which is concerning and indicates weak immediate liquidity or the specific composition of current assets. Revenue has generally been growing in recent periods, while gross profit and EBITDA remain at acceptable levels, supporting the thesis of a gradual business recovery. However, net income and EPS remain very modest, and EPS is below the industry median by nearly the full scale, so profitability still does not match the market valuation. ROE, ROA, and ROI are also below the industry median, which means capital and assets are not being used as efficiently as in stronger IT companies. The P/E, P/S, P/B, and especially P/FCF multiples are noticeably above the industry median, and this is the main argument against raising the target price: the market is already pricing in a significant improvement. The absence of dividends removes the defensive income component, so the investor is fully dependent on business growth and re-rating. Debt does not look critical, but it also does not provide a strong reason for a valuation premium. Overall, the fundamentals support a moderately cautious view: the business is not weak, but the current price looks demanding in terms of further profit and cash flow growth. For the target valuation, this implies only a slight negative adjustment rather than a full revision of the thesis.

BlackBerry Limited

Сильный индекс, значительно вырос. Быки крепко уверены в своих позициях.

Strong index, significantly up. The bulls are very confident in their positions.

Слабый индекс, незначительно вырос. Рынок не поддерживает быков.

Weak index, slightly up. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

BlackBerry has a strong balance sheet and high gross margin, but profitability and cash flow are weaker than the industry, and its valuation multiples remain elevated.

SailPoint, Inc. (SAIL) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.50%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.05, delivering a surprise of +25%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
SailPoint, Inc. , which belongs to the Zacks Internet - Software industry, posted revenues of $308.81 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $264.36 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SailPoint, Inc. shares have lost about 12.1% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for SailPoint, Inc. ?
While SailPoint, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SailPoint, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $327.91 million in revenues for the coming quarter and $0.32 on $1.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, BlackBerry (BB), is yet to report results for the quarter ended August 2026. The results are expected to be released on September 24.
This cybersecurity software and services company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BlackBerry's revenues are expected to be $143 million, up 10.3% from the year-ago quarter.
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SailPoint, Inc. (SAIL) Q2 Earnings Surpass Estimates

Samsara Inc. (IOT) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 400%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.03, delivering a surprise of 200%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Samsara Inc., which belongs to the Zacks Internet - Software industry, posted revenues of $300.2 million for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 3.75%. This compares to year-ago revenues of $219.26 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Samsara Inc. Shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 15.7%.
What's Next for Samsara Inc.
While Samsara Inc. Has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Samsara Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $307.87 million in revenues for the coming quarter and $0.13 on $1.21 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Cognyte Software Ltd. (CGNT), another stock in the same industry, has yet to report results for the quarter ended July 2024. The results are expected to be released on September 10.
This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +77.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cognyte Software Ltd.'s revenues are expected to be $84.4 million, up 9.5% from the year-ago quarter.
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Samsara Inc. (IOT) Surpasses Q2 Earnings and Revenue Estimates

The automotive industry is witnessing a shift toward software-defined and increasingly autonomous vehicles.
BlackBerry BB participates primarily through its QNX automotive operating systems, while Aptiv PLC APTV is a designer and manufacturer of vehicle components and a provider of electrical, electronic and safety technology solutions to the global automotive market.
BlackBerry and Aptiv offer investors two distinct ways to invest in the automotive tech space. So, now the question arises: Which stock makes for a better investment pick at present? Let’s dive into the pros and cons of each company.
The Case for BB
For BlackBerry, QNX remains the key catalyst, with revenues climbing 26% year over year to $72 million in the first quarter of fiscal 2027. More importantly, QNX's adjusted gross margin expanded 500 basis points to 86%, while adjusted EBITDA jumped 52% to about $19 million.
The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.
Management emphasized that these tools are mainly tied to new platforms, including its SDP 8 architecture, which positions the company for multi-year revenue visibility. The company’s partnerships with major chipmakers such as NVIDIA and Qualcomm, underscore QNX’s role as a foundational software layer in next-generation intelligent systems.
Beyond automotive, General Embedded Markets is a fast-growing opportunity, expanding QNX’s reach into robotics, industrial automation and medical devices, while Physical AI represents another significant long-term growth avenue.
BlackBerry Limited Revenue (Quarterly)
Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and drive backlog. While still early, management remains positive about securing a design win within the current fiscal year.
Following the strong quarter, BlackBerry raised its fiscal 2027 QNX revenue outlook to $295-$312 million and adjusted EBITDA guidance to $74-$86 million.
However, the path is not without challenges. Heavy reliance on the dynamic automotive industry is a concern. The QNX platform remains exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. Some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk.
Though BB’s other segment, Secure Communications, is rebounding, it remains exposed to deal-timing variability and this could impact performance.
The Case for APTV
Aptiv’s automotive business remains supported by a healthy pipeline of new programs across some of the industry’s most important technology areas. Aptiv reported progress across next-generation automotive technologies, including full-stack Gen 6 ADAS, driver and cabin monitoring, Gen 8 radar, centralized software-defined vehicle architectures, digital cockpits and high-voltage interconnects.
Aptiv generated $5 billion of new business awards during the second quarter, taking year-to-date awards to $10 billion and keeping the company on track for its $20 billion full-year target.
However, the near-term automotive environment remains challenging. Aptiv reduced its 2026 revenue guidance at the midpoint by $300 million, including roughly $150 million from changes in customer production schedules, $100 million from delayed launches and ramps, and $50 million from the timing of enterprise software and services sales. 2026 revenues are now projected to be $12.6-$12.8 billion, while adjusted EPS is forecast at $5.60-$5.80.
China is a particular concern. Aptiv has successfully increased its business with local Chinese OEMs and grew China revenues 5% in the second quarter, but growth was partly offset by slowdown in production in the domestic market. Weakness in China's domestic automotive market is affecting both local OEM production and European luxury vehicles exported into China.
Aptiv PLC Revenue (Quarterly)
Nonetheless, adjusted EBITDA margin expanded by 10 basis points in the second quarter despite automotive pressures. Engineered Components performed particularly well, expanding adjusted EBITDA margin by 100 basis points year over year.
Though the company's long-term opportunity remains substantial, auto sector challenges make the near-term trajectory less predictable. Aptiv is focused on business diversification to reduce reliance on auto sector.
Non-automotive revenues increased 12% in the second quarter, with opportunities spanning robotics, drones, aerospace and defense, energy storage, and data centers. Management is confident that robotics and drones can collectively generate roughly $300 million in annual revenues within the next few years. For now, however, those newer businesses remain too small to fully offset weakness in Aptiv's much larger automotive operations.
Price Performance and Valuation for BB & APTV
Year to date, BB has registered gains of 120%, while Aptiv is down 35.8%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, BB is trading at 7.63X, higher than APTV’s 0.77X.
Image Source: Zacks Investment Research
How Does the Zacks Consensus Estimate Compare for BB & APTV?
Analysts have lowered earnings estimates both BB and APTV for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
BB or APTV: Which Is a Better Pick
BB currently holds a Zacks Rank #2 (Buy) and APTV carries a Zacks Rank #5 (Strong Sell).
In terms of the Zacks Rank, BB appears to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BlackBerry vs. Aptiv: Which Auto Tech Stock Is the Better Buy?

BlackBerry Limited BB reported a strong start to fiscal 2027, with higher revenue and profitability across QNX and Secure Communications supporting improved earnings. First-quarter revenue reached approximately $153 million, up 26% year over year and above the high end of guidance. Adjusted gross margin expanded 4 percentage points year over year to 79%, while adjusted EBITDA more than doubled to approximately $36 million, representing 24% of revenue. Adjusted net income was roughly $25 million, and adjusted EPS reached 4 cents, at the high end of the company’s guidance. BlackBerry also reported positive GAAP net income for the fifth consecutive quarter.
QNX contributed significantly to the margin improvement. Revenue increased 26% year over year to approximately $72 million, while adjusted gross margin expanded about 5 percentage points to 86%. Adjusted EBITDA grew 52% to around $19 million, or 27% of revenue. Management noted that higher-margin QNX royalties are becoming a larger part of the revenue mix, allowing more revenue to translate into margin expansion, profitability and cash generation. As the business shifts further toward royalties, which carry close to 100% margin, management expects potential for additional margin expansion.
Secure Communications also recorded a 2-percentage-point year-over-year increase in adjusted gross margin, supported partly by a favorable mix of higher-margin software revenue. Revenue rose 24% to approximately $74 million, while adjusted EBITDA reached around $20 million, representing a 27% margin. Management expects greater margin variability in Secure Communications because large government deals can drive significant quarterly revenue and profitability.
Following the strong quarter, BlackBerry raised its fiscal 2027 outlook. QNX revenue guidance increased to $295 million-$312 million, with adjusted EBITDA projected at $74 million-$86 million. Licensing revenue guidance was raised to approximately $29 million, with adjusted EBITDA of $25 million. Revenue guidance increased to $594 million-$621 million, while adjusted EBITDA guidance rose to $119 million-$139 million. On the lastearnings call management highlighted 90% flow-through of incremental revenue into adjusted EBITDA as evidence of strong operating leverage. For the second quarter, revenue is expected at $137 million-$148 million, adjusted EBITDA at $20 million-$30 million and adjusted EPS at 3-4 cents.
Taking a Look at BB’s Competitors
CrowdStrike CRWD benefits from a high-margin subscription-driven business model, with subscription revenues accounting for 95% of fiscal 2026 revenues. The recurring nature of these revenues supports margin stability and provides greater visibility as customers renew and adopt additional Falcon modules. Strong operating cash flow and free cash flow generation also underscore improving financial efficiency. However, margins remain exposed to elevated operating expenses, particularly investments in sales and marketing and R&D. These expenses increased 20% and 29%, respectively, in fiscal 2026. Continued investment and competitive pricing pressure could constrain margin expansion despite the favorable subscription mix and growing scale.
Aptiv PLC APTV continues to face near-term margin pressure despite solid profitability in Engineered Components. Second-quarter 2026 adjusted EBITDA margin expanded 160 basis points to 18.7%, supported by operating execution, volumes and favorable currency effects. However, Intelligent Systems margin contracted to 14% from 15.2% as higher engineering investments, customer mix and stranded EDS costs weighed on profitability. Ongoing restructuring, separation expenses, commodity inflation and OEM price reductions of 1-3% annually could further limit margin expansion. Although productivity initiatives and non-automotive growth provide support, launch delays, weaker European demand and elevated R&D spending suggest that sustaining recent margin gains may remain challenging.
BB Price Performance, Valuation & Estimates
Shares of BlackBerry have soared 40.6% in the past three months compared with the Internet-Software industry’s 14.6% growth.
Regarding the price/book ratio, BB is trading at 6.82, higher than the industry’s multiple of 4.56.
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..
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Aptiv PLC (APTV) : Free Stock Analysis Report

Will BlackBerry's Higher Margins Boost Its Earnings Growth Outlook?

BlackBerry Limited BB is experiencing an improving financial position, with stronger profitability and liquidity, offering greater flexibility to return capital to its shareholders.
With management expecting approximately $100 million of operating cash flow for fiscal 2027, the key question is whether stronger cash generation can pave the way for additional buybacks.
BB delivered strong first-quarter fiscal 2027 results, with quarterly revenues of $152.9 million, representing a 26% year-over-year increase. Adjusted EBITDA more than doubled to $36.3 million.
For the quarter ended on May 31, 2026, BlackBerry generated $4.6 million in operating cash flow, marking its first cash-positive fiscal first quarter in nine years (excluding special items related to patent sales) against usage of $18 million a year ago.
Free cash flow was $1.7 million for the quarter against an outflow of $18.9 million in the previous quarter. The company ended the quarter with $422.9 million in cash and investments.
BlackBerry Limited Free Cash Flow (Quarterly)
This financial flexibility provides management with multiple options for capital allocation, including investments in growth opportunities, strategic initiatives and shareholder returns.
BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares at an average price of $3.85 per share.
Encouraged by its financial position, management recently renewed and expanded the program, authorizing the repurchase of approximately 27 million additional shares.
With QNX benefiting from software-defined vehicle adoption, General Embedded Markets and Physical AI opportunities, and Secure Communications gaining momentum from government and digital sovereignty initiatives, BlackBerry appears positioned to generate stronger cash flows over time. If that trend continues, the company could have higher capacity to return capital to its shareholders through future buybacks while investing in long-term growth.
BlackBerry noted that 90% of incremental revenues are expected to flow through to adjusted EBITDA, highlighting the increasing operating leverage.
Let’s Look at Capital Allocation for Competitors
Within the cybersecurity space, BlackBerry competes with several giants, including CrowdStrike CRWD. While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is a leading pure-play cybersecurity company. CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR.
CrowdStrike generated $590.9 million in operating cash flow and $468.5 million in free cash flow in the fiscal first quarter. The company repurchased $176 million of shares and had approximately $1.3 billion remaining under its existing authorization. Management said the company would remain opportunistic in returning capital while continuing to invest in its growth opportunities. The company expects fiscal second quarter revenues to be between $1.436 billion and $1.442 billion.
Aptiv PLC (APTV is an automotive technology peer for BlackBerry's QNX business. The company repurchased $250 million worth of shares in the second quarter of 2026, bringing the year-to-date repurchases to $325 million. APTV intends to buy back a similar amount in the second half, which will bring the total repurchases for the year to more than $600 million.
2026 free cash flow is expected at $625-$725 million. Importantly, Aptiv added that it plans to use approximately 50% of expected free cash flow for regular share repurchases over the next few years, with 2026 repurchases expected to be materially above that level.
BB Price Performance, Valuation & Estimates
Shares of BlackBerry have edged up 0.7% in the past month compared with the Internet-Software industry’s 5% growth.
Regarding the price/book ratio, BB is trading at 6.95, higher than the industry’s multiple of 4.56.
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Aptiv PLC (APTV) : Free Stock Analysis Report
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Can BlackBerry's Stronger Cash Generation Unlock More Buybacks?

BlackBerry Limited BB has staged an impressive comeback in 2026 with shares having rallied 124.8% year to date (“YTD”), outperforming the Internet Software industry (down 11.4%) and the S&P 500 composite (up 9.5%). The rally is underpinned by structural growth drivers and a strong business model.
Price Performance
Yet, despite this strong run, the stock remains well below the 52-week high of $13.59, closing its last day at $8.52. This raises a key question for investors: has the easy money already been made, or does BlackBerry still offer meaningful upside?
BB: Continued Execution Momentum
BlackBerry delivered a strong start to fiscal 2027 with first-quarter revenues marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million. BlackBerry also reported positive GAAP net income for the fifth consecutive quarter
Management highlighted that both its core segments — QNX and Secure Communications — achieved “Rule of 40” performance, reflecting a combination of strong growth and profitability.
The company also generated positive free cash flow, even in a seasonally weaker quarter.
The balance sheet remains strong, with $423 million in cash and investments and continued repurchases reinforce capital allocation discipline.
BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares totaling $17 million. Last month, BlackBerry renewed and expanded its share repurchase program, authorizing the buyback of approximately 27 million additional shares.
QNX: The Core Growth Engine
QNX remained the key catalyst, with revenues climbing 26% year over year to $72 million. The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.
Management emphasized that these tools are tied to new platforms, including its SDP 8 architecture, which positions the company for multi-year revenue visibility.
Management highlighted partnerships with major chipmakers such as NVIDIA and Qualcomm, underscoring QNX’s role as a foundational software layer in next-generation intelligent systems.
Beyond automotive, General Embedded Markets and Physical AI are emerging as a fast-growing opportunity, expanding QNX’s reach into industrial automation, robotics and medical devices.
Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and drive backlog. While still early, management remains positive about securing a design win within the current fiscal year.
Secure Comms: Headwind to Growth Contributor
Secure Communications also delivered a standout quarter, with revenues increasing 24% year over year to $74 million. The segment is witnessing improved performance anchored by government demand, recurring revenues and customer retention. Rising demand for digital sovereignty and cybersecurity modernization by governments across the globe is creating a powerful tailwind.
Underlying metrics such as annual recurring revenue (“ARR”) and customer retention indicate a steady base. ARR grew 5% to $220 million, with a healthy dollar-based net retention rate, or DBNRR came in at 92%.
BB’s Strong Outlook
Encouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier. Adjusted EBITDA is projected between $119 million and $139 million.
QNX revenues are expected in the range of $295-$312 million and adjusted EBITDA at $74-$86 million. It expects Secure Communications revenues of $270-$280 million and adjusted EBITDA of $57-$65 million. Licensing & Other revenues are expected to be roughly $29 million.
The strong start to fiscal 2027 and subsequent outlook revision reinforces that BlackBerry’s turnaround strategy is gaining traction.
However, the path is not without challenges. Secure Communications remains exposed to deal-timing variability and this could impact performance. In addition, some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. Heavy reliance on the automotive industry is a concern. The QNX platform remains heavily exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.
Within QNX, it faces Wind River (VxWorks) and Alphabet’s GOOGL Android Automotive OS. The cybersecurity business is pitted against CrowdStrike CRWD, Palo Alto Networks PANW and a host of other cybersecurity companies.
Image Source: Zacks Investment Research
Given all this, the estimates for the current fiscal year have been revised downward over the past 60 days.
What to Make of BB’s Premium Valuation?
After a sharp rally, valuation becomes a key consideration.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, BB is trading at 43.83X, way higher than the Internet-Software sector’s multiple of 27.32X. The premium appears somewhat justified given the company’s improving fundamentals and long-term growth prospects.
In comparison, GOOGL trades at a forward 12-month P/E multiple of 21.86, while CRWD and PANW are trading at multiples of 144.45X and 91.99X, respectively.
Shares of GOOGL, CRWD and PANW have gained 19.3%, 72.8% and 88.4%, respectively, year to date.
Investment View: Here’s Why BB Is Still a Buy
BB currently carries a Zacks Rank #2 (Buy).
Strong QNX momentum, emerging opportunities in the GEM space and a resurgent Secure Communications segment all point to meaningful long-term potential. With significant gains already, the buying opportunity may no longer be as attractive as earlier, but for investors with a long-term horizon, BlackBerry’s transformation suggests that the rally may not be over just yet.
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BlackBerry Gains 125% YTD: Has the Buying Opportunity Passed?

Sonos, Inc. SONO reported third-quarter fiscal 2026 non-GAAP earnings of 27 cents per share, which soared 52% year over year and topped the Zacks Consensus Estimate of 24 cents. The 12.5% surprise reflected higher sales and disciplined spending despite rising memory costs.
Revenues increased 9% to $375 million, beating the $367 million consensus by 2.3%. Speaker demand and international expansion supported growth. Sonos’ installed base exceeded 53 million connected devices across more than 17 million homes.
Sonos’ Speaker Sales Lead Product Growth
Revenues from Sonos speakers rose 12.5% year over year to $285.3 million and remained the company’s largest product category. The quarter included the first full period of availability for Sonos Play and Era 100 SL, both of which contributed meaningfully to revenue growth.
Sonos system products generated $69.3 million, down 5.4%. Partner products and other revenues increased 15.4% to $20.7 million. Amp Multi is scheduled to ship on Aug. 25, extending the company’s offering for professional installers and larger multi-zone projects.
SONO’s Overseas Markets Outpace the Americas
Americas revenues advanced 3.8% to $238.4 million. Europe, the Middle East and Africa revenues climbed 17.4% to $114.2 million, while Asia-Pacific sales increased 27.2% to $22.7 million.
Foreign exchange added about one percentage point to reported growth. On a constant-currency basis, total revenues rose 7%, accelerating three percentage points from the second quarter.
Sonos’ Margin Gains Offset Memory Inflation
Non-GAAP gross profit increased 10.8% to $170.8 million. Non-GAAP gross margin expanded 80 basis points (bps) to 45.5%, even as higher memory costs created a $14 million year-over-year burden and reduced the margin by roughly 380 bps.
GAAP gross margin was 50.4%, including a $23.2 million benefit from refunds of previously paid tariffs. Excluding that non-recurring benefit, GAAP gross margin was 44.3%, up 90 bps year over year.
SONO Keeps Expenses in Check as EBITDA Rises
GAAP operating expenses increased 3.4% to $157.8 million, mainly due to employee compensation, litigation spending and restructuring charges. Non-GAAP operating expenses rose 2.7% to $134.6 million and remained below the levels recorded in the first two quarters of fiscal 2026.
Adjusted EBITDA grew 23.5% to $44 million, with the margin improving to 11.7% from 10.3%. Non-GAAP operating income reached $36.2 million, up 57.3%, as gross-profit growth outpaced the increase in adjusted expenses.
Sonos Generates Cash and Returns Capital
Cash provided by operating activities increased 23.5% to $46.2 million. Free cash flow rose 23.3% to $40.3 million, while cash and marketable securities totaled $261 million at quarter-end.
Sonos repurchased 2 million shares for $30 million, leaving $35 million under its authorization. Inventories were $158 million, up 37% year over year due to higher memory costs, new product launches and capitalized tariffs.
Sonos, Inc. Price, Consensus and EPS Surprise
SONO Expects Faster Q4 Growth Despite Margin Pressure
For the fourth quarter of fiscal 2026, SONO expects revenues of $325 million to $355 million, representing 13% to 23% growth. The 14-week quarter includes an extra week expected to add about $24 million in sales and eight percentage points to growth. Excluding that benefit, growth is projected at 4% to 15%.
GAAP gross margin is forecast between 39% and 41%, with non-GAAP gross margin about 120 bps higher. Management expects memory inflation to reduce gross profit by $35 million year over year. Adjusted EBITDA is projected between a loss of $11 million and a profit of $18 million.
For fiscal 2026, Sonos expects revenue growth of 6% to 8%, or 4% to 6% excluding the extra week. Adjusted EBITDA is projected at $181 million, up 37%, with an 11.7% margin. Management expects memory-mitigation actions to phase in through fiscal 2027.
Sonos’ Zacks Rank
Sonos currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2.
Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion.
America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.
BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sonos Q3 Earnings Beat on Broad-Based Growth and Cost Control

Woodward, Inc. WWD reported third-quarter fiscal 2026 adjusted earnings of $2.52 per share, up 43.2% year over year. The bottom line beat the Zacks Consensus Estimate of $2.39 by 5.4%.
Net sales rose 21.2% to $1.11 billion but missed the consensus mark of $1.114 billion by 0.4%. Commercial OEM sales surged 34%, while demand remained broad across Woodward's Industrial markets.
In the past year, shares have gained 50.6% compared with the Zacks Aerospace - Defense Equipment industry’s rise of 4.8%.
Image Source: Zacks Investment Research
WWD's Aerospace Sales Accelerate
Aerospace sales increased 19% to $709 million. Commercial OEM revenues reached $234 million as aircraft production rates increased, while commercial services generated $268 million on continued legacy aircraft servicing and growing LEAP and GTF activity. Management said service inputs remained steady to higher across newer engine platforms.
Defense OEM sales declined 6% to $141 million because of a one-time revenue recognition adjustment. Excluding that item, sales would have grown in the mid-single digits. Defense services rose 20% to $66 million. Segment earnings advanced 35% to $170 million, and margin expanded 290 basis points (bps) to 24%. A retroactive contract pricing adjustment added about 100 bps to the margin.
Woodward's Industrial Growth Broadens
Industrial sales climbed 26% to $401 million. Transportation revenues increased 40% to $180 million, aided by strong marine demand and $40 million of China on-highway sales. Power generation rose 19% to $145 million on robust data-center demand for prime and backup power.
Oil and gas revenues advanced 11% to $76 million, supported by liquefied natural gas infrastructure activity and improving upstream capital spending.
Industrial earnings jumped 86% to $88 million, while margin expanded 720 bps to 22.1%. China on-highway contributed about 90 bps to the margin. Core Industrial sales, which exclude that business, grew 19% to $361 million.
WWD's Pricing and Productivity Support Profits
Adjusted EBITDA increased 50% to $249 million, while adjusted EBIT rose 58% to $217 million. Total costs and expenses were $916.2 million compared with $788.6 million a year earlier. Profitability benefited from higher volume and pricing, partly offset by inflation, unfavorable mix and a higher tax burden. The adjusted effective tax rate rose to 24.2% from 14.5%.
Companywide price realization was 10% in the quarter. Management expects full-year pricing of about 8%, with a more normal 3-5% range going forward. Lean initiatives are beginning to improve factory productivity. Automation across machining, inspection and material handling is intended to reduce the need for roughly 1,000 incremental hires by 2029.
Woodward, Inc. Price, Consensus and EPS Surprise
Woodward's Cash Flow Funds Capacity Expansion
Net cash provided by operating activities increased 17% to $147 million. Free cash flow declined 12% to $87 million as capital expenditures more than doubled to $60 million. Management expects spending to rise sharply in the fourth quarter, mainly to finish the Spartanburg facility and purchase equipment for the A350 spoiler program.
Woodward ended June with $475 million in cash and cash equivalents and $1.34 billion of total debt. EBITDA leverage was 1.6 times. Through nine months, operating cash flow reached $352 million and free cash flow totaled $196 million. The company returned $608 million to shareholders, including $553 million through repurchases and $55 million through dividends.
WWD Raises Fiscal 2026 Earnings Outlook
WWD raised its fiscal 2026 adjusted earnings guidance to $9.30-$9.50 per share from $9.15-$9.45. The company maintained its sales growth outlook of 20-23%, free cash flow forecast of $300-$350 million and capital expenditure plan of approximately $290 million. It expects to return about $700 million to shareholders for the full year.
Aerospace sales are now expected to grow 21-23%, with a segment margin of about 23.5%. Industrial sales growth is projected at 19-21%, up from 18-20%, while segment margin is expected to reach roughly 19%. The adjusted effective tax rate forecast increased to approximately 22.5%.
WWD’s Zacks Rank
Woodward currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.
America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.
BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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WWD Q3 Earnings Beat on Aerospace and Industrial Strength

SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share (EPS) of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2.
Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion.
AI strategy is becoming a major competitive advantage for SAP. Management emphasized its Autonomous Enterprise strategy, which combines Business AI with enterprise applications. SAP is embedding AI directly into finance, procurement, supply chain, HR and customer operations. The company's strategy revolves around two major pillars –Autonomous Suite and Business AI Platform. SAP believes customers increasingly value AI solutions that operate using trusted enterprise data while maintaining governance and compliance.
This positioning gives SAP a competitive edge because its AI capabilities are built on decades of customer business processes and transactional data rather than disconnected AI models. As AI adoption expands across enterprises, SAP is well-positioned to monetize AI through higher cloud subscriptions rather than relying solely on standalone AI products.
Cloud Business Continues to Be SAP's Growth Engine
Current cloud backlog reached €22.9 billion in the quarter, representing 27% year-over-year growth (26% at cc). This metric is important because it reflects contracted future cloud revenue, giving investors visibility into future growth.
On a non-IFRS basis, the Cloud and software segment (89.6% of total revenues) registered revenues of €8.9 billion, rising 11% year over year (up 13% at cc).
Cloud revenue increased 22% year over year (24% at cc) to €6.3 billion, on a non-IFRS basis, demonstrating that enterprise customers continue to migrate mission-critical workloads to SAP's cloud ecosystem. SAP's Cloud ERP Suite, where revenue increased 25% (27% at cc) to €5.5 billion, is equally encouraging. Software licenses and support revenues totaled €2.6 billion, representing a 9% decrease (down 8% at cc) year over year.
Services business (10.4% of total revenues) posted revenues of €1 billion, down 3% year over year (down 2% at cc).
Expanding Clientele Bodes Well
In the second quarter, organizations worldwide continued to adopt the “RISE with SAP” program to support their comprehensive business transformations. Notable adopters included ACCIONA, AIRBUS, City of Osnabrück, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma and Vonovia.
“GROW with SAP” was implemented by Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, and Techem.
Major global brands across various industries, including AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich and Vale, chose SAP's AI and data solutions.
SAP SE Price, Consensus and EPS Surprise
SAP secured significant customer wins across its solution portfolio, with new or expanded engagements from leading organizations such as Birlasoft, Capgemini, Haier Group and KaDeWe.
Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP and TEAG went live on SAP solutions during the quarter.
SAP’s cloud revenue growth was especially strong in the APJ and EMEA regions and robust in the Americas, with standout performances from Brazil, France, Germany, Italy, India, South Korea and Spain. It remained strong in the United States, Australia and Singapore.
Margin Details
Non-IFRS gross profit of €7.3 billion increased 9% from the year-ago quarter (up 11% at cc).
Non-IFRS cloud gross profit increased 22% year over year to €4.7 billion (up 23% at cc). Non-IFRS cloud gross margin fell 0.6 percentage points to 74.6%.
SAP's non-IFRS operating profit rose 7% (up 9% at cc) to €2.7 billion, while margin decreased to 27.8%.
Balance Sheet & Cash Flow
As of June 30, 2026, SAP had cash and cash equivalents of €11.6 billion compared with €10.1 billion as of March 31, 2026.
In the second quarter, the company generated operating cash of €3.2 billion, up 22% year over year. Free cash flow, a key metric of operational strength, rose 27% to €3 billion during the quarter.
SAP also continues returning capital to shareholders. Its newly authorized €10 billion share repurchase program remains active. As of June 30, the company had repurchased more than 16.28 million shares and spent approximately €2.6 billion.
SAP’s 2026 Guidance Reaffirmed Despite Lower Profit Outlook
The company lowered its non-IFRS operating profit outlook from €11.9–€12.3 billion to €11.8–€12.2 billion. The revision stems almost entirely from the acquisitions of Dremio and Prior Labs, which closed in July. Management expects these acquisitions to create a dilutive impact exceeding €100 million during 2026.
Despite lowering operating profit guidance slightly, SAP maintained nearly all of its major financial targets. Management still expects cloud revenue between €25.8 billion and €26.2 billion, cloud and software revenue between €36.3 billion and €36.8 billion and approximately €10 billion in free cash flow.
Additionally, SAP expects cloud backlog growth to remain strong, though slightly slower, total revenue growth to match 2025 levels, revenue acceleration in 2027 and operating expense growth to remain below revenue growth.
Nonetheless, the company acknowledged that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East. Any prolonged conflict could negatively impact enterprise spending or business operations.
SAP’s Zacks Rank
SAP currently carries a Zacks Rank #4 (Sell).
Recent Performances
America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.
BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.
Iridium Communications IRDM reported EPS of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million.
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SAP Q2 Earnings Up Y/Y on Cloud Demand, Buyouts Impact Profit Outlook

BlackBerry BB kicked off fiscal 2027 on a strong note, delivering better-than-expected first-quarter results and raising its fiscal year outlook. The performance was anchored by strong QNX and Secure Communications businesses, but the key question remains whether this momentum can sustain.
Quarterly revenues came in at $152.9 million, marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million.
QNX remained the key catalyst, with revenues climbing 26% year over year to $72 million. The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.
Beyond automotive, General Embedded Markets and Physical AI are emerging as a fast-growing opportunity, expanding QNX’s reach into industrial automation, robotics and medical devices.
Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and driving backlog. While still early, management remains positive about securing a design win within the current fiscal year.
BlackBerry Limited Revenue (Quarterly)
Secure Communications also delivered a standout quarter, with revenues increasing 24% year over year to $74 million. The segment is witnessing improved performance anchored by government demand, recurring revenues and customer retention. Rising demand for digital sovereignty and cybersecurity modernization by governments across the globe is creating a powerful tailwind.
Encouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier.
The strong start to fiscal 2027 and subsequent outlook revision reinforces that BlackBerry’s turnaround strategy is gaining traction. However, the path is not without challenges. Secure Communications remains exposed to deal-timing variability and this could impact performance.
In addition, some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. Heavy reliance on the automotive industry is a concern. The QNX platform remains heavily exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.
Let’s Take a Look at BB’s Peers
Within the cybersecurity space, BlackBerry competes with several giants, including CrowdStrike CRWD. While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is one of the leading pureplay companies. CRWD entered fiscal 2027 with strong momentum, with the fiscal first quarter revenues rising 26% year over year to $1.39 billion and ARR reaching $5.51 billion (up 24%), alongside record net new ARR of $256 million (up 32%). Management emphasized that as enterprises rapidly adopt AI, cybersecurity has become a critical component, creating a massive demand pipeline.
CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR. The company expects fiscal second quarter revenues to be between $1.436 billion and $1.442 billion. CRWD raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint
Aptiv PLC APTV Intelligent Systems segment is seeing increased activity around next-generation ADAS, user experience and vehicle architecture solutions. However, in the near-term Aptiv is navigating a volatile macro backdrop amid OEM and auto industry disruptions and inflationary pressure. For the second quarter of 2026, Aptiv expects revenues (excluding its EDS segment, which spun-off into a new publicly traded company, Versigent) to be between $3.2 billion and $3.4 billion.
APTV has only about 25% of its business outside automotive. The company is seeking to increase penetration in markets such as commercial aerospace and telecom and remains focused on accelerating product development and go-to-market activities.
BB Price Performance, Valuation & Estimates
Shares of BlackBerry have lost 16.5% in the past month against the Internet-Software industry’s growth of 11%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, BB is trading at 6.74, higher than the industry’s multiple of 4.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.