BlackBerry (BB) Stock Forecast & Price Target

BlackBerry's transition to a software-focused enterprise provider, particularly in secure communications and endpoint management, is underscored by a notable increase in gross margins, with QNX achieving an impressive 83% gross margin and overall gross margins rising to 75%, a 4% year-over-year improvement. The company anticipates revenue growth, projecting total revenue of $539 million for FY26 and $571 million for FY27, an upward revision from previous estimates. Additionally, the expected rise in EBITDA to $111 million in FY27 from $78 million in FY26 reflects the firm's strengthened financial performance and reinforces the positive outlook on its stock.

BlackBerry's financial outlook is negatively impacted by an 11% year-over-year decline in revenue, attributed to challenging comparative periods exacerbated by a major hardware refresh last year. Additionally, Secure Communications experienced a decrease in gross margin by 330 basis points quarter-over-quarter, indicating issues with revenue mix despite achieving positive cash flow earlier than expected. Furthermore, the company's EBITDA guidance suggests a potential decrease in margins during the second half of the fiscal year, which may raise concerns among investors regarding profitability sustainability.