BlackBerry shares rise 23% after Q1 beat, guidance raised

Shares of BlackBerry surged on Thursday, June 25, after the company reported stronger-than-expected first-quarter results and raised its full-year revenue guidance, fueling investor optimism around its pivot to software for artificial intelligence and robotics.

The stock closed up approximately 23% on U.S. exchanges, with trading volume exceeding 21 million shares. The company reported a first-quarter profit of $8.5 million, a significant increase from $1.9 million in the same period last year.

Total revenue for the quarter ended May 31 reached $152.9 million, a 26% year-over-year increase and above the company's own forecast. On an adjusted basis, earnings were four cents per share. The company also reported its fifth consecutive quarter of positive GAAP net income and its first positive operating cash flow in a fiscal first quarter in nine years, excluding a one-time patent sale.

A key driver was the performance of BlackBerry's QNX operating system, a safety-certified software framework used in automotive and robotics applications. QNX revenue grew 26% to $72.3 million, with the division's backlog of future royalties nearing $1 billion. Management noted that development license...