BlackBerry Limited (NYSE:BB) reported its third consecutive quarter of GAAP profitability for the third quarter of fiscal year 2026. The company posted GAAP net income of $13.7 million, marking a $24 million improvement compared to the same period last year.
Non-GAAP earnings per share reached $0.05, exceeding consensus estimates by 25%. Total revenue for the quarter was $141.8 million.
On November 8, RBC Capital reiterated its Sector Perform rating on BlackBerry and set a price target of $4.50. The research firm stated the company faces near-term challenges in its QNX business due to project deferrals and platform launch delays.
QNX revenue grew 7% in the third quarter, falling short of the company's long-term compound annual growth rate target of 14%. Growth in the QNX segment has trended toward the lower end of the company's long-term target range.
The results were attributed to progress in BlackBerry's strategic focus on automotive embedded systems and secure communications. The company, which shifted from phone manufacturing to providing intelligent security software and solutions, now focuses on the Internet of Things, cybersecurity, and embedded systems, particularly in the automotive sector.