The automotive industry is witnessing a shift toward software-defined and increasingly autonomous vehicles.
BlackBerry BB participates primarily through its QNX automotive operating systems, while Aptiv PLC APTV is a designer and manufacturer of vehicle components and a provider of electrical, electronic and safety technology solutions to the global automotive market.
BlackBerry and Aptiv offer investors two distinct ways to invest in the automotive tech space. So, now the question arises: Which stock makes for a better investment pick at present? Let’s dive into the pros and cons of each company.
The Case for BB
For BlackBerry, QNX remains the key catalyst, with revenues climbing 26% year over year to $72 million in the first quarter of fiscal 2027. More importantly, QNX's adjusted gross margin expanded 500 basis points to 86%, while adjusted EBITDA jumped 52% to about $19 million.
The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.
Management emphasized that these tools are mainly tied to new platforms, including its SDP 8 architecture, which positions the company for multi-year revenue visibility. The company’s partnerships with major chipmakers such as NVIDIA and Qualcomm, underscore QNX’s role as a foundational software layer in next-generation intelligent systems.
Beyond automotive, General Embedded Markets is a fast-growing opportunity, expanding QNX’s reach into robotics, industrial automation and medical devices, while Physical AI represents another significant long-term growth avenue.
BlackBerry Limited Revenue (Quarterly)
BlackBerry Limited revenue-quarterly | BlackBerry Limited Quote
Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and drive backlog. While still early, management remains positive about securing a design win within the current fiscal year.
Following the strong quarter, BlackBerry raised its fiscal 2027 QNX revenue outlook to $295-$312 million and adjusted EBITDA guidance to $74-$86 million.
However, the path is not without challenges. Heavy reliance on the dynamic automotive industry is a concern. The QNX platform remains exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. Some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk.
Though BB’s other segment, Secure Communications, is rebounding, it remains exposed to deal-timing variability and this could impact performance.
The Case for APTV
Aptiv’s automotive business remains supported by a healthy pipeline of new programs across some of the industry’s most important technology areas. Aptiv reported progress across next-generation automotive technologies, including full-stack Gen 6 ADAS, driver and cabin monitoring, Gen 8 radar, centralized software-defined vehicle architectures, digital cockpits and high-voltage interconnects.
Aptiv generated $5 billion of new business awards during the second quarter, taking year-to-date awards to $10 billion and keeping the company on track for its $20 billion full-year target.
However, the near-term automotive environment remains challenging. Aptiv reduced its 2026 revenue guidance at the midpoint by $300 million, including roughly $150 million from changes in customer production schedules, $100 million from delayed launches and ramps, and $50 million from the timing of enterprise software and services sales. 2026 revenues are now projected to be $12.6-$12.8 billion, while adjusted EPS is forecast at $5.60-$5.80.
China is a particular concern. Aptiv has successfully increased its business with local Chinese OEMs and grew China revenues 5% in the second quarter, but growth was partly offset by slowdown in production in the domestic market. Weakness in China's domestic automotive market is affecting both local OEM production and European luxury vehicles exported into China.
Nonetheless, adjusted EBITDA margin expanded by 10 basis points in the second quarter despite automotive pressures. Engineered Components performed particularly well, expanding adjusted EBITDA margin by 100 basis points year over year.
Though the company's long-term opportunity remains substantial, auto sector challenges make the near-term trajectory less predictable. Aptiv is focused on business diversification to reduce reliance on auto sector.
Non-automotive revenues increased 12% in the second quarter, with opportunities spanning robotics, drones, aerospace and defense, energy storage, and data centers. Management is confident that robotics and drones can collectively generate roughly $300 million in annual revenues within the next few years. For now, however, those newer businesses remain too small to fully offset weakness in Aptiv's much larger automotive operations.
Price Performance and Valuation for BB & APTV
Year to date, BB has registered gains of 120%, while Aptiv is down 35.8%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, BB is trading at 7.63X, higher than APTV’s 0.77X.
Image Source: Zacks Investment Research
How Does the Zacks Consensus Estimate Compare for BB & APTV?
Analysts have lowered earnings estimates both BB and APTV for the current fiscal year in the past 60 days.
BB
Image Source: Zacks Investment Research
APTV
Image Source: Zacks Investment Research
BB or APTV: Which Is a Better Pick
BB currently holds a Zacks Rank #2 (Buy) and APTV carries a Zacks Rank #5 (Strong Sell).
In terms of the Zacks Rank, BB appears to be a better pick at the moment.
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