12:50 PM EDT, 09/22/2025 (MT Newswires) -- BlackBerry (BB) could report better-than-expected fiscal second-quarter revenue amid a stable macro backdrop and raise its annual core earnings outlook on continued cost restraint, RBC said Monday.

The brokerage projects the cybersecurity software company's adjusted earnings at $0.01 a share for the second quarter on revenue of $125.1 million. The consensus calls for non-GAAP EPS of $0.01 and revenue of $122.1 million, according to RBC.

"The company typically provides conservative guidance, as actual revenue has exceeded consensus by 6% and actual adjusted EPS has beat consensus by $0.02 on average over the last four quarters," RBC analysts Paul Treiber and John Shuter said in a note to clients. The brokerage believes that the macro environment was more stable than the company assumed with its guidance.

In June, BlackBerry said it expected second-quarter adjusted EPS to range from breakeven to $0.01 and revenue to come in between $115 million and $125 million. The company is scheduled to report results Thursday.

RBC expects BlackBerry to reiterate its fiscal 2026 revenue outlook and potentially raise its expectations for adjusted earnings before interest, taxes, depreciation and amortization on continued cost restraint. In June, the company said it expected full-year revenue of $508 million to $538 million and adjusted EBITDA of $72 million to $87 million.

"BlackBerry has averaged actual quarterly adjusted EBITDA ($12 million) above consensus over the last four quarters," the RBC analysts said. The brokerage pegs new adjusted EBITDA outlook in a range of $75 million to $90 million, according to the note.

The company's shares were up 4.6% in Monday afternoon trade. The stock has jumped nearly 16% so far in 2025.

RBC expects second-quarter revenue in BlackBerry's secure communications segment to be in line with its estimate of $59 million, representing the high end of the company's previously issued outlook. Several fellow cybersecurity firms reported "solid results" in their July quarters, with no material change in the macro environment observed in that period, according to the brokerage.

Revenue in the QNX division could "slightly exceed" RBC's forecast of $60 million, as US automakers and auto tech companies indicated that the demand in the auto sector has been resilient despite global tariff uncertainties, the analysts said.

RBC maintained its sector perform rating on the BlackBerry stock, as it expects its valuation to "remain discounted pending improved visibility to sustained growth."

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