Senior Technical Product Manager - Industrial Automation & Robotics

BlackBerry (BB): QNX is compounding, but Secure Communications just lost its momentum. BlackBerry's Q2 results highlight a widening gap between its two businesses, with improving QNX performance offering growth potential even as an in-line Q3 outlook weighs on investor sentiment. Published September 28, 2026 at 8:44 pm EDT BlackBerry Limited (NYSE:BB) fiscal second quarter shows two businesses moving in opposite directions at the same time, and the stock's roughly 3% slide on an in-line third-quarter guide indicates that the market is still weighing which one matters more heading into the back half of the year. BlackBerry's improving QNX performance also comes as investors place a higher premium on technology companies that can turn specialized platforms into sustained growth. In our recent story, Palo Alto Networks (PANW)'s AI Growth Faces a Higher Valuation Bar, we examined how strong operating momentum can raise expectations for cybersecurity and other technology companies as investors demand more from their growth stories. QNX is the clean growth story. Revenue rose 27% year-over-year to a record $80.3 million, gross margin hit a record 87%, and adjusted EBITDA jumped 41% to $29 million at a 36% margin, extending momentum from the first quarter's 26% QNX growth. The quarter's biggest single data point was Coretura, the Volvo Group and Daimler Truck joint venture, selecting BlackBerry Limited Alloy Kore platform for its next-generation commercial vehicles, the largest QNX contract in the company's history and one expected to add more than $100 million to the royalty backlog. Canaccord Hold, $9.50, down from $10.30, frames QNX as the core investment case now, arguing the record quarter and the Alloy Kore win more than offset weakness elsewhere. Management raised its full-year QNX revenue outlook for the second consecutive quarter, to $315 million to $325 million, and BlackBerry posted its sixth straight quarter of positive GAAP net income, ending the period with $447.1 million in cash. Secure Communications is where the story turns. That segment grew just 2% year-over-year to $60.9 million this quarter, a sharp deceleration from the first quarter's 24% growth to $73.6 million, and its adjusted EBITDA margin collapsed to 13% from 27% a year earlier on a heavier mix of lower-margin device revenue. What stands out is that management cut its full-year Secure Communications guidance to $260 million to $270 million preemptively, citing rising Canada-US trade tension risk given the segment's large U.S. federal footprint, while explicitly acknowledging it has not yet seen material impact or any pipeline slowdown outside North America. That is a defensive guidance cut made ahead of confirmed damage, not in response to it. Canaccord's own price target reduction, despite its enthusiasm for QNX, reflects exactly this tension: the firm's Hold rating persists because Secure Communications' softness is offsetting rather than being fully outweighed by QNX's strength, and it's the in-line third-quarter revenue guide of $143 million to $154 million, not the QNX beat, that actually drove the stock lower. What the smart money sees. Hedge fund ownership climbed to 31 funds from 19 in the second quarter of 2026, with D. E. Shaw increasing its stake 3,510% to 13.32 million shares worth $168.4 million and Citadel Investment Group adding 259% to reach $115.5 million. Renaissance Technologies raised its position 132% to $103.7 million, and Marshall Wace opened a new $57.7 million stake. Shares trade at 47.17 times forward earnings, below Okta's 54.35 but well under Palo Alto Networks' 94.34, and short interest sits at 6.42% of float, up modestly from 36.9 million to 37.63 million shares. Takeaway. BlackBerry Limited is now effectively two businesses trading as one stock: a QNX franchise compounding on real automotive design wins and margin expansion, and a Secure Communications unit whose own management is bracing for a geopolitical risk that has not materialized yet. Whether the stock re-rates further likely depends on whether Secure Communications stabilizes before QNX's growth alone is large enough to carry the whole company on its own.

BlackBerry reported a 26% revenue increase to $163.3 million for its fiscal second quarter ended 31 August, driven by record performance from its QNX automotive software division. QNX generated $80.3 million in quarterly revenue, up 27% year-over-year, with adjusted EBITDA climbing 41% to $29 million. The company's software now runs in over 275 million vehicles globally. BlackBerry secured its largest QNX design win with Coretura, a joint venture between Daimler Truck and Volvo Group, adding more than $100 million to its royalty backlog. Overall adjusted EBITDA rose 81% to $47 million, whilst operating cash flow improved to $29.3 million from $3.4 million the previous year. The company raised its full-year guidance following the results.

US concerns over F-35 technology leaks and tightening controls on sensitive defence shipments are drawing investor attention to cybersecurity and secure logistics firms. Trend Micro, a Japanese cybersecurity platform provider serving enterprises and governments globally, has a market capitalisation of approximately ¥857.8 billion. The company generates revenue across Japan, Asia Pacific, Europe, and the Americas, with AI-infused capabilities including cyber risk management and digital twin security environments. BlackBerry, now focused on secure software and embedded systems for governments and transport sectors, earns around $283 million from its QNX division and $273 million from Secure Communications, supported by a CA$7.1 billion market cap. The shift in defence supply chain security is reshaping capital flows across the sector.