When most buyers consider Canadian tech, Shopify often steals the highlight. However dig just a little deeper, and also you’ll discover a lesser-known legend quietly turning its ship round: BlackBerry (TSX:BB). Sure, the identical BlackBerry that when dominated your highschool group chats is now powering the world’s most safe communications and autonomous automobiles. And with shares down roughly 42% from 52-week highs, it could be one of the crucial magnificent Canadian tech shares to purchase and maintain without end.
About BlackBerry
Earlier than diving into why BlackBerry deserves a spot in your long-term portfolio, let’s take a look at how far it has come. This isn’t the identical firm that fizzled out within the smartphone wars. BlackBerry has fully reinvented itself, leaning into cybersecurity, synthetic intelligence (AI), and embedded automotive software program. It has gone from making telephones to powering them, beneath the hood, actually.
BlackBerry’s current earnings report for Q1 fiscal 2026 is a powerful signal that the technique is working. Income got here in at $121.7 million, beating steerage. That’s no small feat in right this moment’s macro surroundings. It additionally posted adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of $16.4 million, one other beat.
The turnaround isn’t only a one-quarter surprise. Its QNX phase, utilized in over 235 million automobiles globally, delivered $57.5 million in income, up 8% 12 months over 12 months. The division additionally produced a powerful adjusted EBITDA margin of twenty-two%. Safe Communications, which incorporates government-grade cybersecurity choices, posted $59.5 million in income and a 70% gross margin. Each segments beat steerage. That’s not luck. That’s execution.
Why the dip?
Regardless of the robust efficiency, BlackBerry inventory is buying and selling at round $5.09, far beneath its 52-week excessive of $8.86. That’s a 42% drop, regardless that the enterprise itself is in higher form than it has been in years. A part of this disconnect is as a result of broader tech sell-off and investor fatigue from its previous disappointments, to not point out meme inventory historical past. However long-term buyers know that worth and worth aren’t the identical.
From a valuation perspective, BlackBerry is now buying and selling at 4 instances gross sales and three instances e-book worth. Its ahead price-to-earnings ratio sits at 36.1, which isn’t outrageous for a tech firm with renewed profitability, a clear steadiness sheet, and publicity to high-growth areas like embedded techniques and cybersecurity.
What to look at
Money is one other feather in its cap. BlackBerry ended the quarter with $381.9 million in whole money and investments, in comparison with $235.7 million in debt. That provides it the pliability to put money into development or return capital to shareholders, which it did, shopping for again 2.6 million shares this quarter. In actual fact, the corporate simply launched a share buyback program that reveals it believes the inventory is undervalued.
In fact, it’s not all easy crusing. The corporate remains to be within the midst of proving its relevance in right this moment’s fast-moving tech world. Quarterly income fell barely 12 months over 12 months, and the Safe Communications’ internet income retention fee dipped from 93% to 92%. However these are manageable bumps on an in any other case enhancing street.
Wanting forward, BlackBerry is guiding for as much as $538 million in whole income for fiscal 2026 and non-GAAP earnings per share between $0.08 and $0.10. For a inventory priced simply over $5, that’s compelling. It means buyers are shopping for right into a uncommon Canadian firm that gives software-driven recurring income, rising margins, and, lastly, internet earnings.
Backside line
So, is BlackBerry nonetheless an extended shot? Perhaps. Nevertheless it’s rather a lot much less speculative than it was. The corporate has carved out a powerful place in automotive tech and cybersecurity – two areas that aren’t going anyplace. Its steadiness sheet is wholesome. Its margins are increasing. And it simply proved it could actually flip a revenue.
In brief, that is now not a turnaround story. It’s a comeback. And with shares nonetheless deeply discounted from their highs, now would be the time to seize a slice and maintain it for the lengthy haul. As a result of in relation to tech shares you may truly be ok with proudly owning in Canada, BlackBerry may simply be one of the crucial magnificent.
