BlackBerry Limited’s BB transformation from a smartphone pioneer into an enterprise software and embedded-systems company continues to gather momentum. At the center of that turnaround is the QNX division, whose safety-certified operating systems are increasingly becoming foundational software for software-defined vehicles, ADAS, robotics and other mission-critical applications.
Momenta, a Physical AI company, and XHEART have selected QNX OS for Safety, built on QNX SDP 8.0, as the operating-system foundation for their Physical AI-defined autonomous driving platform. By combining Momenta’s autonomous-driving software, XHEART’s X7 automotive-grade SoC and QNX’s safety-certified operating system, the companies are targeting a production-ready platform for global automotive markets. Under the deal terms, Momenta brings autonomous-driving intelligence, XHEART provides the X7 automotive SoC for high-performance computing and QNX supplies the safety-critical operating system. Together, they create an integrated path from AI development to vehicle deployment.
For automotive OEMs, safety certification can be as important as raw computing performance. QNX OS for Safety is certified to ISO 26262 ASIL D and is designed to support automakers targeting markets with stringent functional-safety requirements, including Europe’s UN R171 framework for driver-control assistance systems. The broader significance for BlackBerry lies in the growth of Physical AI. QNX's long-term prospects are supported by trends in automotive, GEM, and Physical AI markets.
QNX is already delivering stronger growth. It generated $72.3 million of revenue in first-quarter fiscal 2027, up 26% year over year, driven by higher development-license revenue, royalties, Radar revenue and professional services. Moreover, BlackBerry raised its fiscal 2027 QNX revenue outlook to $295-$312 million from $290-$307 million. Total company revenue guidance was also raised to $594-$621 million.
Can BB Outpace Rivals in Automotive Software?
NVIDIA Corporation NVDA continues to build a longer-duration growth option in automotive, robotics and other physical AI applications. It expanded partnerships with Hyundai Motor Company and Kia for next-generation autonomous driving built on its DRIVE platform, and broadened its relationship with Uber to launch a fleet of autonomous vehicles powered by DRIVE AV software. NVIDIA also highlighted that additional automakers are building level 4-ready vehicles on its DRIVE Hyperion platform and introduced a unified safety architecture. While still smaller than the Data Center, these programs can compound as production volumes and software content rise. NVIDIA partners with companies like BlackBerry for their Physical AI safety stack.
Qualcomm IncorporatedQCOM automotive growth is driven by deeper penetration of its Snapdragon Digital Chassis and increasing ADAS content per vehicle. The Veoneer Arriver assets remain an important part of the Snapdragon Ride stack, adding perception and drive policy software that supports an open platform approach for automakers. In the fiscal second quarter, automotive revenue rose 38% as new digital cockpit and ADAS launches transitioned to its fourth-generation chipsets. Qualcomm also highlighted expanding ecosystem engagement, including work with partners to broaden production-ready ADAS options on Snapdragon Ride platforms, which can support a larger share of the vehicle compute bill of materials as programs move from design win to volume shipments.
BB Price Performance, Valuation & Estimates
Shares of BlackBerry have surged 38.4% in the past three months compared with the Internet-Software industry’s growth of 8.8%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, BB is trading at 6.7, higher than the industry’s multiple of 4.36.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.
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