BlackBerry (BB): Earnings Beat, IoT Growth, Analyst Neutrality

BlackBerry Limited (NYSE:BB) is one of the best NYSE stocks under $5 to buy. On December 19, RBC Capital reaffirmed its Sector Perform rating on BlackBerry Limited (NYSE:BB) stock and a $4.50 price target. This decision followed BlackBerry’s Q3 FY26 earnings. RBC noted that although BlackBerry beat estimates and raised guidance, the reliance on one-time gains rather than ongoing business improvements kept them cautious.

BlackBerry announced its Q3 2026 results on December 18, in which it reported sequential revenue growth and continued profitability improvements. For example, total revenue reached $141.8 million, exceeding the upper end of prior guidance. This is also a 9% sequential increase from Q2 but a 1% year-over-year dip. Management attributed this to shifts in licensing deals offset by gains in core operations.

The QNX IoT division hit a record quarterly revenue of $68.7 million, a 10% year-over-year growth. This growth was driven by deeper automotive penetration and expansion into adjacent markets like medical and industrial, noted management. Other segments also did well: Secure Communications revenue came in at $67 million, and Licensing and other revenue totaled $6.1 million.

Given the performance, management raised full-year FY26 guidance. They lifted the total revenue midpoint to $531-541 million from the initial $519-541 million. But adjusted EBITDA is unchanged at $82-101 million, non-GAAP EPS at $0.11-0.15, and operating cash flow at $35-40 million. Management cited sustained momentum in QNX and Secure Communications as the key growth drivers.

BlackBerry Limited (NYSE:BB) is a cybersecurity and software company. It develops and provides intelligent security software and services to enterprises and governments. The company’s portfolio includes cybersecurity solutions, unified endpoint management, and QNX software, which powers mission-critical applications in automotive and industrial sectors.

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Disclosure: None. This article is originally published at Insider Monkey.