What is BlackBerry's main source of revenue growth according to Stifel?

BlackBerry's QNX operating system, a safety-certified platform used in AI-enabled vehicles, robotics, industrial automation, and medical devices. General embedded markets, including factories, robotics and healthcare, already account for about 20% of QNX revenue, with design wins including an AI-enabled heart pump project for Johnson & Johnson.

What is BlackBerry's royalty backlog and why does it matter?

The royalty backlog reached roughly $950 million（約1500億円） in fiscal 2026, providing multi-year revenue visibility and supporting a higher-quality, recurring revenue profile. The backlog continues to expand despite weakness in global automotive production, reflecting sustained design-win momentum.

How much revenue growth does Stifel forecast for BlackBerry in fiscal 2027?

Stifel forecasts BlackBerry's revenue will rise nearly 10% in fiscal 2027 to about $602 million（約960億円）, accelerating from 3% growth in fiscal 2026. Adjusted EBITDA is expected to increase to $122 million（約200億円） from $107 million（約170億円）.

Back to articles

Stifel initiates bullish coverage of BlackBerry, arguing the software company is undervalued as a critical infrastructure provider for physical AI applications in vehicles, robotics, and industrial systems.

Yahoo Finance AI1d ago6 min read

Key takeaway

Investment bank Stifel initiated coverage of BlackBerry with a bullish Buy rating, arguing the software company is undervalued as a critical infrastructure provider for physical AI systems. The company's QNX operating system is used in AI-enabled vehicles, robotics, industrial automation, and medical devices, with a roughly $950 million（約1500億円） royalty backlog providing multi-year revenue visibility. Stifel estimates BlackBerry could ultimately address a revenue opportunity more than ten times larger than its current QNX business, and projects fiscal 2027 revenue of about $602 million（約960億円）, nearly 10% growth from fiscal 2026.

Summaries like this, in your inbox every morning.

3 Key Points

What happened
Stifel began coverage of BlackBerry with a Buy rating and $12 price target. The brokerage highlighted BlackBerry's QNX operating system as a safety-certified platform used in AI-enabled vehicles, robotics, industrial automation, and medical devices, with a royalty backlog that reached roughly $950 million（約1500億円） in fiscal 2026.
Why it matters
BlackBerry's business is shifting beyond automotive software toward mission-critical infrastructure for physical AI systems. Stifel estimates BlackBerry could ultimately address a revenue opportunity more than ten times larger than its current QNX business as physical AI adoption expands, and the company's Secure Communications division is emerging from years of decline with recent wins from the U.S. Internal Revenue Service, Germany's Bundesbank, and other government agencies.
What to watch
Stifel forecasts BlackBerry's revenue will rise nearly 10% in fiscal 2027 to about $602 million（約960億円）, with adjusted EBITDA increasing to $122 million（約200億円） from $107 million（約170億円）. The company is scheduled to report fiscal first-quarter results on June 25.

FAQ

What is BlackBerry's main source of revenue growth according to Stifel?: BlackBerry's QNX operating system, a safety-certified platform used in AI-enabled vehicles, robotics, industrial automation, and medical devices. General embedded markets, including factories, robotics and healthcare, already account for about 20% of QNX revenue, with design wins including an AI-enabled heart pump project for Johnson & Johnson.
What is BlackBerry's royalty backlog and why does it matter?: The royalty backlog reached roughly $950 million（約1500億円） in fiscal 2026, providing multi-year revenue visibility and supporting a higher-quality, recurring revenue profile. The backlog continues to expand despite weakness in global automotive production, reflecting sustained design-win momentum.
How much revenue growth does Stifel forecast for BlackBerry in fiscal 2027?: Stifel forecasts BlackBerry's revenue will rise nearly 10% in fiscal 2027 to about $602 million（約960億円）, accelerating from 3% growth in fiscal 2026. Adjusted EBITDA is expected to increase to $122 million（約200億円） from $107 million（約170億円）.

Discussion

No discussion yet for this article

Stay ahead with AI news

Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.

Get Started Free

Free · takes 30 seconds · unsubscribe anytime

5 minutes a day. The AI essentials.

200+ sources · Email / LINE / Slack

Get it free →