BlackBerry has raised its full-year revenue forecast after its QNX software business posted record quarterly revenue, driven by growing demand for automotive software and new contracts with vehicle manufacturers.
The Canadian technology company said on Thursday that it now expects full-year 2027 revenue of between $616 million and $636 million, up from its previous forecast of $594 million to $621 million.
The revised outlook followed a strong second quarter in which revenue from QNX, BlackBerry’s software division, rose 27 per cent to $80.3 million for the three months ended August 31.
QNX develops software for safety-critical systems used in vehicles, robotics, medical devices and industrial applications.
Automotive technology remains the main driver of the division’s growth, with BlackBerry saying the shift towards software-defined vehicles is increasing both the number of vehicles that can use its technology and the amount of software deployed in each vehicle.
Major automakers including Audi, Daimler, General Motors, Hyundai and Mercedes-Benz use QNX software in their vehicles.
BlackBerry CEO John Giamatteo told Reuters that QNX technology is being deployed across several vehicle systems, including digital cockpits, advanced driver-assistance systems and body-control applications.
“We’re supporting all the different domains of the car. That’s one of the reasons why we’re seeing some of the explosive growth,” Giamatteo said.
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The company also announced that Coretura, a joint venture between Volvo Group and Daimler Truck, had selected QNX software for its next-generation commercial vehicles.
BlackBerry said the deal could add more than $100 million to QNX’s royalty backlog, making it the largest QNX contract in the company’s history.
BlackBerry reported total second-quarter revenue of $163.3 million, exceeding analysts’ estimate of $145.6 million, according to LSEG data.
However, the company’s shares fell about 3 per cent after it issued a third-quarter revenue forecast broadly in line with market expectations.
BlackBerry expects third-quarter revenue of between $143 million and $154 million, compared with analysts’ estimate of $149.6 million.
The company’s shares have more than doubled in value so far this year.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
