BlackBerry shares are rising after the Canadian software company delivered stronger-than-expected results, signalling renewed momentum in its core businesses.
BNN Bloomberg spoke with Carmi Levy, technology analyst and journalist, who says the company’s years-long restructuring is beginning to translate into measurable growth across its automotive software and secure communications segments.
Key Takeaways
- BlackBerry reported revenue and earnings above expectations, reinforcing signs its turnaround strategy is gaining traction.
- Growth is being driven by its QNX unit, which continues to benefit from the shift toward software-defined vehicles.
- Secure communications demand is rising as governments prioritize digital sovereignty and defence-related technology.
- The company’s restructuring — including cost cuts and divestitures — has improved execution and profitability.
- Risks remain tied to automotive sector uncertainty, which could delay customer investment in next-generation vehicle software.
Read the full transcript below:
ROGER: Shares of BlackBerry are surging after the Canadian software company beat first-quarter estimates. The turnaround is gaining traction, helped by strong demand in its cybersecurity and embedded software businesses. For more on this, we’re joined now by technology analyst and journalist Carmi Levy. Carmi, thanks, as always, for joining us.
CARMI: Good to be with you, Roger. Thanks for having me.
ROGER: Okay, BlackBerry — are they getting their feet underneath them?
CARMI: They certainly are. It’s been a really long road. This was the darling of the smartphone market. They literally defined smartphones before they were eclipsed by Apple and later Google. They’re now a fraction of their former size. They’ve gotten out of that business, obviously, and are now focused on automotive embedded systems, security software and secure communications.
It’s taken them a while to establish themselves in these new markets and start getting momentum. But clearly, looking at the numbers from this morning’s earnings call, it’s obvious they’re starting to execute on those years of promise — to the point that CEO John Giamatteo is now saying they are a growth company. Both of these key sectors where they operate are now exhibiting solid growth, with strong internal execution after years of restructuring. They’re starting to gain momentum in both markets.
ROGER: And what’s caused that change?
CARMI: I think part of it is internal discipline. They cut costs, got out of businesses and sold their Cylance division, which was a drag on growth. They’ve invested in their QNX embedded technology to remain competitive, and they’re being recognized for it.
They’ve essentially gone on a diet, and they’re finally in shape. They’re also being recognized by key customers. BMW has chosen them to underpin the architecture for its next-generation Neue Klasse vehicles. On the security side, the federal government has expanded its use of SecuSUITE for secure communications.
They’re also benefiting from external factors. Defence spending is expected to increase significantly, so the need for secure communications will continue to grow in Canada and globally. They’ve positioned themselves so that as market conditions evolve, they’re ready to capitalize.
ROGER: And what is the QNX system? It sounds like that’s their base — their lifeblood right now.
CARMI: It is. That division posted record revenue this quarter, continuing to grow and beat expectations. It’s also a high-margin business.
Basically, they provide the software that powers vehicles, and this is increasingly important as the industry shifts toward software-defined vehicles. Instead of cars having a few software systems, vehicles are increasingly designed as rolling computers, with features delivered through software rather than hardware.
That’s where QNX has long been a leader. It’s why BlackBerry acquired it years ago, and why it’s now driving growth.
That said, the automotive industry faces headwinds due to U.S. trade uncertainty and geopolitical tensions in the Middle East. Automakers could delay investments in software-defined vehicles. But when they’re ready, QNX is well positioned, having continued to invest and innovate despite growing competition.
ROGER: What are you going to look for over the next six months or a year that would give you more confidence this turnaround is solid?
CARMI: I’ll be looking at whether they can build on early wins. The federal government deal gives them credibility — can they secure similar deals globally as demand for digital sovereignty grows?
The same goes for QNX. BMW is a significant win — but can they expand to other automakers? That will show whether these are isolated successes or part of a broader, sustainable growth story.
ROGER: All right, I’ve got to wrap it up there. Carmi, always a pleasure to talk to you.
CARMI: Appreciate it, Roger. Thank you.
ROGER: Technology analyst and journalist Carmi Levy.
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This BNN Bloomberg summary and transcript of the April 9, 2026 interview with Carmi Levy are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
