BlackBerry (NYSE:BB), a security software and embedded systems provider, closed at $10.32, up 19.72%. Shares rose after first-quarter fiscal 2027 results showed an earnings beat and revenue above estimates. Investors are watching QNX’s momentum and updated fiscal 2027 revenue guidance. Trading volume reached 70.2M shares, coming in about 140% above its three-month average of 29.2M shares. BlackBerry IPO'd in 1999 and has grown 438% since going public.
The S&P 500 (SNPINDEX:^GSPC) closed at 7,357, down 0.01%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 25,359, down 0.46%. Among cybersecurity and embedded software for enterprises and automakers, Palo Alto Networks closed at $293.09, up 2.74%, and CrowdStrike Holdings ended at $678.65, up 0.84%, showing firmer trading in sector rivals.
It was a great day for BlackBerry shareholders as the company delivered Q1 sales and adjusted EBITDA growth of 26% and 144%, respectively, suggesting that its turnaround is in full effect. In addition to this impressive Q1 growth, management guided that 2027 sales will rise by roughly 11% at the midpoint and that it will generate at least $100 million in cash from operations -- up from $50 million last year.
The best part of BlackBerry’s strong results, in my opinion, is that they were company-wide. Its burgeoning, automotive-focused (for now) QNX unit grew sales by 26% and remains the “crown jewel” of BB’s growth plans, with a backlog of nearly $1 billion. However, the company’s more mature security communications and licensing divisions also grew revenue by 24% and 49%, respectively.
BlackBerry has quietly reinvented itself, but investors may want to consider buying shares in small batches over time as the stock has already doubled over the last year.
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Josh Kohn-Lindquist has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends BlackBerry and Palo Alto Networks. The Motley Fool has a disclosure policy.