BlackBerry Stock Is Trending Higher Today: What's Happening?

BlackBerry Ltd (NYSE:BB) shares are moving higher on Monday. RBC Capital Markets reported on Friday that it lifted its price target and highlighted a stronger-than-expected start to the fiscal year. Here’s what you should know.

• BlackBerry stock is challenging resistance. Why is BB stock breaking out?

Analyst Paul Treiber kept a Sector Perform rating and raised his target from $4.50 to $9.00 after the firm reviewed BlackBerry’s first-quarter results and the company’s updated outlook.

RBC said BlackBerry posted its biggest beat in the last year, with first-quarter revenue up 26% year over year to $152.9 million versus RBC’s $135.9 million estimate and consensus at $137.8 million. Adjusted EBITDA came in at $36.3 million, well ahead of RBC’s $19.6 million estimate, and adjusted EPS was 4 cents versus the Street’s 3 cents. The firm also highlighted that this was BlackBerry’s strongest quarterly beat since the first quarter of FY26.

QNX Led The Upside

QNX revenue rose 26% year over year to $72.3 million, above RBC’s $62.1 million estimate and consensus at $63.0 million. RBC said the strength came from development seat licenses, professional services and royalties, with development seat license revenue reaching its highest level in eight quarters. The report also pointed to continued design wins in automotive and GEM, plus management’s expectation for the first Alloy Kore design win this fiscal year.

The note says BlackBerry is now trading at 9.6x next-twelve-month EV/sales, near the top of its five-year range and at a 112% premium to auto-tech peers. RBC’s view is that further upside needs faster sustained growth, especially at QNX.

First-quarter revenue climbed 26% year-over-year to $152.9 million, ahead of RBC’s $135.9 million estimate and consensus at $137.8 million.

The broker raised its FY27 revenue forecast to $621 million from $598 million and its adjusted EBITDA estimate to $139 million from $120 million. Still, RBC kept a Sector Perform rating, arguing that BlackBerry’s rerating is already significant and that the stock now trades at a rich valuation relative to peers.