Can Momentum in QNX Unit Fuel BlackBerry's Top-Line Growth?
The increasing adoption of the next-generation version of the QNX operating system, Software Development Platform (SDP) 8.0 (across aerospace, medical equipment, rail and defence verticals), as well as the release of the QNX General Embedded Development Platform, are aiding it. It supports modern platforms (ARMv9, RISC-V, multicore CPUs) and development tools and includes QNX Hypervisor 2.2 for mixed-criticality virtualization.
Recently, BlackBerry's QNX announced that its SDP 8.0 will serve as the base OS for the Eclipse Foundation's Safe Open Vehicle Core (S-CORE) Project, supporting faster, cost-effective development of Software Defined Vehicles and marking a key step toward a common, safety-critical automotive platform. In May 2025, BlackBerry's QNX unit launched QNX Hypervisor 8.0, a virtualization tool built on SDP 8.0 to simplify complex embedded software development. It enables multiple OSes—like Android, Linux and QNX—to run securely on a single SoC via a microkernel architecture, offering virtualized memory, CPUs, devices and system isolation.
Growing momentum in QNX Cabin with multi-year deal wins from the top 10 global auto OEMs further cushions its prospects. Despite delays in automotive software development, QNX's royalty backlog grew year over year to about $865 million. This shows that QNX is adding future royalty revenue faster than it is being recognized, which BlackBerry sees as a strong sign of the business's long-term health.
QNX is a leading brand in the automotive sector, and BlackBerry is increasingly leveraging its strength as a key driver for top-line growth for fiscal 2026 and beyond. For the QNX business, revenues are expected to be in the range of $51-$55 million in the first quarter of fiscal 2026.
However, the company anticipates a sequential fall in the revenues from the QNX business, which totaled $65.8 million during the fourth quarter of fiscal 2025. Volatility in the automotive sector remains concerning. Management, on the last earnings call, highlighted that due to recent tariff changes, especially on automotive goods, BlackBerry is currently unsure how this will affect its business. While it does not expect a direct impact on products and services, there may be indirect effects on its customers, such as supply chain disruptions and changes in demand.
Alphabet Inc.'s GOOG Android Automotive OS (AAOS), launched in 2017, is a full-stack OS running directly on vehicle hardware, with services like Google Maps, Assistant and Play Store. It powers vehicles from Volvo, GM, Ford, Renault-Nissan, Stellantis, BMW and others. BMW adopted AAOS for OS8, and Ford plans to shift over half its fleet to it. According to S&P Global's report, AAOS will reach approximately 18% market share by 2027, while QNX falls to around 5%. Though AAOS lacks real-time and safety certifications, it excels in infotainment and app integration, often requiring a separate RTOS for critical systems.
Wind River, owned by Aptiv PLC APTV, offers VxWorks (a real-time OS), Wind River Linux and Wind River Studio (cloud-based development/IoT platform). VxWorks is a mature RTOS certified for ISO 26262 ASIL-D, widely used in avionics and some automotive domains (particularly ADAS and autonomous platforms). Wind River has collaborated with Elektrobit to demo a software-defined vehicle controller. It's among the few RTOSes supporting OCI containers for edge deployments. While its automotive market share is smaller than BlackBerry QNX's, it's widely deployed in mission-critical systems. Wind River partners with AWS, NXP, Intel and Tier-1 suppliers, focusing on software-defined vehicles and IoT. Recent efforts include deeper integration with Elektrobit and AWS to advance autonomous vehicle development and edge-to-cloud solutions.
Shares of BB have gained 87.8% in the past year compared with the Zacks Internet – Software industry's growth of 37.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, BB trades at a forward price-to-sales of 4.79X, lower than the industry's average of 5.67X.
Image Source: Zacks Investment Research
BB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
BlackBerry Limited (BB) : Free Stock Analysis Report
Aptiv PLC (APTV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Tesla initiates temporary shutdown that will impact 2 popular models — here's what's happening
Tesla is pausing Model Y and Cybertruck production at its Austin, Texas, facility. This is the automaker's third shutdown, and it will begin the first week of July. Observers are noting the potential impact on customers awaiting vehicles. According to Business Insider, Tesla's weeklong shutdown is for production line maintenance. The company intends to ramp up production in the future. It did not specify which lines would increase output. During the pause, employees can use paid time off or opt for training and cleaning tasks. The halt aligns with its robotaxi launch, which kicked off June 22, as CEO Elon Musk stated that the first rides will be in Model Ys. For customers, production pauses can lead to delayed vehicle deliveries or vehicle unavailability. Common auto industry concerns include parts shortages and inventory management. Tesla paused Cybertruck production for three days in December and reduced production in April because of a battery supply issue. While perhaps necessary for long-term efficiency, pauses can create short-term uncertainty. Downturns in manufacturing may create environmental risks, too, including with e-waste disposal, metal contamination, and chemical runoff. Consistent, growing production of electric vehicles is accelerating the transition from gas-powered cars. Significant shutdowns in EV manufacturing could impede this shift, which reduces transportation-based pollution. Though Tesla reported a 13% year-over-year drop in deliveries in the first quarter, it will continue to play a major part in EV adoption. The automotive giant's goal is to improve production lines and increase output. Automakers such as Ford and GM have also paused production, a standard industry practice. Still, under the Inflation Reduction Act, manufacturers are incentivized to produce clean-energy EVs, batteries, and solar panels. EV consumers should always research availability and wait times of different brands. The market is evolving as manufacturers offer competing products. If you were to install home solar panels, which of these factors would be your primary motivation? Energy independence Lower power bills Helping the planet No chance I ever go solar Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Miami Herald
2 hours ago
- Miami Herald
Car buyers have a lot riding on the ‘Big, Beautiful Bill'
Bureaucrats in Washington, D.C., are burning the midnight oil this week to pass President Donald Trump's massive spending bill, officially known as the One Big Beautiful Bill Act of 2025. Despite his campaign promise that lowering the debt was one of his administration's top priorities, Trump's 1,000-page bill would add $3.3 trillion to the nation's debt obligation, which sits at an astounding $36 trillion, according to the U.S. Treasury. The bill will add to the deficit while potentially kicking millions off of Medicaid and Medicare, programs designed for women, children, the disabled and the elderly to get health insurance they could otherwise not afford. Related: President's latest interview gives US automakers much-needed boost The Congressional Budget Office estimates that 12 million Americans could be thrown off insurance rolls if the bill passes. So if we plan to spend less on the health care of our most vulnerable citizens, why is the bill expected to explode the deficit? The short answer is tax cuts. Other than reducing the deficit, President Trump's other big campaign promise was to extend the $3.8 trillion in tax cuts that went into effect during his first term. The cuts are scheduled to expire at the end of the year if Congress doesn't extend them. Some may call attempting to reduce the deficit while also lowering income impossible, but Trump has chosen this path. Income tax cuts are the only ones in the bill. Auto loan tax relief is also on the table. President Trump's bill features a provision to temporarily let car buyers write off up to $10,000 a year in interest paid on qualifying auto loans. The tax breaks would apply to loans taken out between 2025 and 2028. The tax credit would only go to buyers who purchase cars assembled in the U.S. So even if you're buying a Toyota, as long as it's one of the nearly 2 million vehicles the company builds in the States annually, you're eligible. But not popular imported models, even if they're imported by one of the U.S. Big 3 automakers. Related: Ford CEO Jim Farley speaks up about rivals' 'humbling' progress Individual car buyers making more than $100,000 and couples making more than $200,000 would see the benefits begin to phase out. This legislation passed the House of Representatives, but it is not guaranteed to survive the reconciliation process. The Senate version of the bill has one important difference from the House version. More automotive news Elon Musk's robotaxi has a serious problemFire risk recall affects 60,000Jeep, Dodge parent Stellantis doubles down on the US Cars built before December 31, 2024, are not eligible. Also, unlike in the House version, ATVs, trailers, and campers wouldn't be eligible for the credit. It's no secret that the U.S. auto industry has become dominated by foreign brands over the past few decades. While General Motors still has the highest market share at 17% and Ford ranks third with a 13% market share, foreign models from Asia round out the top five, according to Cox Automotive data. So the 25% tariffs he placed on auto imports are playing well in Detroit. Toyota ranks second with 15% U.S. market share, while Korean brand Hyundai ranks fourth with 11%. Toyota's fellow Japanese brand, Honda, is fifth in the market, with 9%. Despite its home-court advantage, Stellantis ranks sixth, with an 8% share. Japanese auto manufacturers produced 3.28 million vehicles in the U.S. Toyota sold over 2.3 million vehicles in the U.S. in 2024, a 3.7% year-over-year increase. Between April 2024 and March 2025, the company built 1.96 million units in the U.S. Honda, Subaru, Nissan, Mazda, and Toyota combined employed nearly 75,000 manufacturing employees in the U.S. last year, so if the bill passes, your favorite Japanese vehicle could be covered. Related: New Stellantis CEO deals with more of the company's old problems The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Bloomberg
2 hours ago
- Bloomberg
Ford Electric Vehicle Deliveries Dive 31% as Mach-e Sales Halted
Ford Motor Co. 's electric vehicle sales plunged 31.4% in the second quarter after the automaker ordered dealers not to sell its battery-powered Mustang Mach-e model due to a safety flaw that could lock occupants in the car. Ford said the EV swoon was driven by the Mach-e stop-sale and a shortage of stock on dealer lots caused by factory shutdowns to change over to the 2025 model-year versions of two of its three battery-powered models.
