TLDR
- BlackBerry reported earnings of $0.03 per share, beating estimates of $0.01 by $0.02
- Company raised Q3 2026 guidance to $0.020-$0.040 EPS and full-year 2026 guidance to $0.110-$0.15 EPS
- Stock opened at $4.29 on Thursday, trading up 0.4% following the earnings beat
- Multiple institutional investors increased positions, with MIRAE ASSET increasing stake by 1,390.6%
- CEO John Giamatteo sold 26,998 shares in July, reducing his stake by 4.85%
BlackBerry delivered a solid earnings beat for its latest quarter. The software company posted earnings of $0.03 per share, crushing Wall Street’s expectation of $0.01 per share.
The earnings surprise comes as BlackBerry continues transforming from its smartphone roots. The company now focuses exclusively on software solutions for enterprises and secure communications.
BlackBerry’s revenue for the trailing twelve months stands at $553.6 million. The company maintains a strong gross margin of 72.7%, though it posted a negative net margin of 6.3%.
The stock opened at $4.29 on Thursday morning. This represents a slight uptick from recent trading levels and puts shares closer to the middle of their 52-week range.
BlackBerry has traded between $2.24 and $6.24 over the past year. The current price reflects the market’s cautious optimism about the company’s software transition.
Guidance Update Shows Confidence
Management updated its financial outlook for both the third quarter and full fiscal year 2026. The company expects Q3 2026 earnings per share between $0.020 and $0.040.
For the full year 2026, BlackBerry projects earnings per share in the range of $0.110 to $0.15. This guidance update suggests management feels confident about the business trajectory.
The company maintains strong liquidity with current and quick ratios both sitting at 2.10. BlackBerry’s debt-to-equity ratio of 0.27 reflects conservative financial management.
Wall Street analysts maintain mixed views on the stock. The consensus rating sits at “Moderate Buy” with an average price target of $4.60.
Robert W. Baird raised their price target from $4.00 to $5.00 while maintaining a neutral rating. Royal Bank of Canada set a $4.00 price target with a sector perform rating.
Institutional Activity Heats Up
Institutional investors have been active in BlackBerry shares. MIRAE ASSET GLOBAL ETFS HOLDINGS raised its position by a massive 1,390.6% during the second quarter.
The firm now owns 15.6 million shares valued at $71.4 million after purchasing an additional 14.5 million shares. This represents one of the largest institutional position increases in recent quarters.
Bank of America also boosted its holdings by 183.6% in the second quarter. The bank now owns 4.6 million shares worth approximately $21.1 million.
Other institutional buyers include Vident Advisory, which grew its stake by 46.8% to 1.7 million shares. Canada Pension Plan Investment Board increased its position by 221.6% to 1.2 million shares.
Geode Capital Management raised its holdings by 263.2% to nearly 1.2 million shares. These moves suggest growing institutional confidence in BlackBerry’s software strategy.
On the flip side, CEO John Giamatteo sold 26,998 shares in July at $4.32 per share. This transaction was worth $116,631 and reduced his stake by 4.85%.
Company insiders own just 0.37% of outstanding shares. Institutional investors control 54.48% of the stock, giving them substantial influence over trading patterns.
BlackBerry operates in the competitive software security space with a beta of 1.49, indicating higher volatility than the broader market.
