BlackBerry Limited’s BB shares have rallied 68.5%, significantly outpacing the industry’s and the S&P 500 composite’s growth of 2.7% and 4.2%, respectively, in the past three months.

Price Peformance

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Blackberry also has outperformed the broader Zacks Computer & Technology sector’s return of 8.3% and peers within the cybersecurity space, such as Fortinet, Inc. FTNT and CrowdStrike Holdings, Inc. CRWD, which have gained 19.5% and 20.7%, respectively, over the same time frame.

The stock received impetus following various positive developments in the past few weeks. Recently, BB’s QNX unit announced multiple collaborations, including one with tech giant Microsoft Corporation MSFT. Before that, the company announced a divisional rebranding and the relaunch of its QNX brand. BB renamed its IoT division to "QNX," driven by valuable feedback from customers, partners, employees and stakeholders.

The sale of its Cylance business to Arctic Wolf in December 2024 and strong third-quarter fiscal 2025 results, wherein BB reported solid adjusted EBITDA performance and positive free cash flow ahead of schedule, were other triggers.

BB stock closed the last session at $4.06, after reaching a new 52-week high of $4.35. Will the stock register further gain in 2025? Let us analyze the stock in detail to ascertain if it is worth considering for investment.

Will QNX Rebranding Propel BB’s Top Line?

The idea behind rebranding is aimed at enhancing recognition and reinforcing its leadership in the automotive and embedded industries and fuel the development of next-generation software-defined vehicles (SDVs) and mission-critical applications. QNX’s revamped brand identity includes a new logo, website and visual design, reflecting its focus on performance-driven, future-focused solutions.

As part of its strategy, BlackBerry unveiled the QNX Cabin, a cutting-edge solution enabling original equipment manufacturers to virtualize digital cockpit development in the cloud. It also strengthened developer support to drive innovation in embedded software across industries.

QNX and Microsoft partnered to aid automakers in building, validating and refining software within the cloud to power the evolution of SDVs. The partnership will bring the QNX Software Development Platform 8.0 to Microsoft Azure, offering automakers a comprehensive cloud-based environment to accelerate innovation while reducing development risks. Also, QNX and Microsoft plan to extend their collaboration to include the QNX Hypervisor and the QNX Cabin.

Apart from this, QNX, along with Vector and TTTech Auto, has announced a multi-year global collaboration to develop a foundational vehicle software platform. The initiative aims to minimize the complexity and costs of software integration.

Sale of BB’s Cylance Unit Bodes Well

BlackBerry’s announcement of the sale of its underperforming Cylance business within the Cybersecurity unit cheered investors, leading to a sharp 15% gain that day.

The deal, valued at roughly $160 million, includes cash considerations and Arctic Wolf’s common shares. Per the terms of the deal, following purchase price adjustments, BB will receive almost $80 million in cash at settlement and another $40 million a year after settlement. Arctic Wolf will also issue around 5.5 million common shares to BB as part of the deal. This acquisition, expected to close in the fiscal fourth quarter of 2025, is subject to customary regulatory approvals and conditions.

Although BlackBerry is divesting its Cylance assets, the company remains committed to its Secure Communications business, which includes BlackBerry UEM, BlackBerry AtHoc and BlackBerry SecuSUITE. These solutions will remain central to BlackBerry's operations as it strengthens the company’s foothold in secure communications.

Owing to the Cylance sale, BB announced that it is “standing down” all previously provided guidance, related to cybersecurity and the overall guidance for the company. It is now providing guidance only for the new Secure Communications division. It will provide revised guidance for fiscal 2026 for both the Secure Communications division and total revenues for the fourth quarter of fiscal 2025. For the Secure Communications division, revenues are expected to be in the range of $267-$271 million.

Northbound Estimate Revision Activity for BB

Analysts appear bullish, as indicated by the estimate revision activity. EPS estimates for the current fiscal year have improved to 1 cent compared with a loss of 2 cents in the past 60 days. For the next fiscal year, estimates have improved to 7 cents from 2 cents over the same time period.

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BB’s Strong Technical Indicators & Compelling Valuation

BB stock is trading at a discount with a trailing 12-month price/book multiple of 3.31 compared with the industry’s multiple of 8.93.

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Technical indicators are also supporting its strong performance. The stock is trading above its 50-day and 100-day moving averages, indicating upward momentum and price stability. This technical strength reflects positive market perception and growth prospects.

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Time to Buy BB Stock?

BlackBerry’s improving financial performance, strategic initiatives/collaborations and focus on lucrative IoT and cybersecurity verticals position it for long-term growth.

BB currently has a Zacks Rank #1 (Strong Buy). Moreover, it has a Momentum Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Momentum Score of A or B offer solid investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here

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