BlackBerry (TSX:BB) is certainly one of Canada’s most recognizable expertise corporations. But the market doesn’t appear to acknowledge the chance that comes with BlackBerry’s lengthy historical past of technological excellence. It’s definitely a risky historical past, however at this time, all of this has translated into a really engaging alternative to purchase BlackBerry inventory.

BlackBerry inventory: Undervalued and underappreciated

I’d like to start out off by reviewing BlackBerry’s inventory efficiency over the previous few years. As you may see from the worth graph under, within the final 5 years, the inventory has declined 46% and it’s buying and selling at roughly the identical stage as 5 years in the past. It has been just about useless cash for essentially the most half. So, I can positively see why the market lacks curiosity.

Nonetheless, as buyers, we should always primarily be involved with the longer term. Whereas a adverse historical past ought to certainly be thought of as one of many variables to have a look at, it mustn’t overwhelm our judgment of a inventory. So, let’s take a superb have a look at BlackBerry’s current and future.

Latest outcomes sign energy

BlackBerry reported its first quarter, fiscal 2026 outcomes again in June. In a nutshell, these outcomes had been fairly robust, beating the highest finish of the corporate’s steering on each the highest line and the underside line.

Income of $121.7 million was accompanied by earnings per share of $0.02. This EPS outcome topped expectations that had been calling for a break-even backside line outcome, and it in comparison with a lack of $0.03 in the identical interval final yr.

The robust earnings outcome was pushed by a 55% improve in adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA), in addition to effectivity positive aspects. In reality, administration decreased prices by $150 million final yr in its quest to streamline and right-size the enterprise.

The way forward for BlackBerry’s manufacturers

As I discussed at first of this text, BlackBerry has an extended historical past of technical depth and experience, which has fed into the corporate’s stable repute as a expertise chief. BlackBerry’s two fundamental segments, QNX and safe communications, are reaping the rewards.

The primary phase, QNX, is BlackBerry’s machine-to-machine embedded software program options phase. This contains working programs which are enabling linked automobiles in addition to medical gadgets, industrial purposes, and robotics. That is BlackBerry’s high-growth phase.

The second phase is BlackBerry’s safe communications. It is a stable and regular enterprise that gives safe communications for governments, banks, and extra that should shield their info with a view to shield their sovereignty and guard their privateness. Blackberry is the selection of many governments and companies for his or her mission-critical communications.

Extra on BlackBerry’s QNX

QNX has a robust presence within the automotive area. Roughly 90 million automobiles are made yearly. Of those automobiles, roughly 20% are extra superior software program autos, with 80% having simply the essential software program. Within the 20% of superior software program autos, BlackBerry has an over 90% market share.

The QNX enterprise is made up of long-term contracts. We should due to this fact have endurance. However as soon as a automobile is produced and the royalties begin coming in, it just about simply falls to the underside line — it’s all pure revenue. The backlog for QNX is at present at $865 million.

In my opinion, the market will not be recognizing the potential of this enterprise. BlackBerry is driving in direction of constant double-digit progress on the QNX facet, with good enterprise mannequin leverage. The safe communications phase will proceed to assist fund QNX to ensure that BlackBerry to reap the benefits of the numerous progress anticipated there.

The underside line

Whereas not with out its dangers, I imagine that BlackBerry inventory is a really robust purchase. This text goes over among the the reason why I’m of this view, however you may also try my different current articles for extra.

BlackBerry can be reporting its quarterly outcomes on September 25, at which era we can re-evaluate the corporate and its progress.