BlackBerry Ltd (NYSE:BB) stock rose 2.37% (As on April 10, 11:27:33 AM UTC-4, Source: Google Finance) after the company reported fourth quarter results that exceeded analyst expectations. The company’s QNX division posted record quarterly revenue of $78.7 million, up 20% YoY, while Secure Communications revenue grew 8% YoY to $72.5 million, returning to growth driven by demand for digital sovereignty solutions. Adjusted EBITDA increased 71% YoY to $36.1 million. BlackBerry’s QNX royalty backlog increased to approximately $950 million, while total cash and investments rose to $432.4 million. Total company adjusted gross margin improved by approximately 5 percentage points to 78.2%.

Moreover, Secure Communications ARR increased by $10 million, or 5% year-over-year to $218 million; Secure Communications DBNRR increased by 1 percentage point year-over-year to 94%. Licensing revenue was $4.8 million; Licensing segment adjusted EBITDA was $6.3 million. Total cash and investments increased by $22.1 million year-over-year to $432.4 million, in part due to the improved operating cash flow and approximately $38.1 million received in deferred proceeds from the sale of Cylance to Arctic Wolf, partially offset by $60 million of share buybacks.

Meanwhile, Mercedes-Benz among automakers trialing early access version of QNX and Vector’s Alloy Kore platform. QNX technology to be integrated in BMW Group’s next-generation ‘Neue Klasse’ software-defined vehicle architecture. Government of Canada announced an expanded strategic partnership with BlackBerry, including significantly increasing the deployment of BlackBerry SecuSUITE® across federal departments and agencies.

BB in the fourth quarter of FY 26 has reported the adjusted earnings per share of $0.06, beating the analysts’ estimates for the adjusted earnings per share of $0.05. The company had reported the adjusted revenue growth of 10 percent to $156 million in the fourth quarter of FY 26, beating the analysts’ estimates for revenue of $142.55 million.

For the first quarter of fiscal 2027, BlackBerry guided revenue between $132 million and $140 million, with a midpoint of $136 million. The company projected full fiscal year 2027 revenue of $584 million to $611 million, with a midpoint of $597.5 million. Adjusted EPS guidance for the first quarter is $0.02 to $0.03, while full year guidance is $0.15 to $0.19.

The company reported adjusted EBITDA guidance of $14 million to $22 million for the first quarter and $110 million to $130 million for the full fiscal year. Operating cash flow for the quarter was $45.6 million, up 9% YoY, with the company projecting approximately $100 million for fiscal 2027.