Blackberry (BB) 2026 Baird Global Consumer, Technology & Services Conference summary

Business transformation and growth focus

• Completed turnaround, shifting to a growth-oriented strategy with a streamlined portfolio and cost reductions.

• Focused on two main objectives: expanding QNX and mission-critical security solutions.

• QNX division positioned for significant growth, with profitability driven by cost management.

• Strategic reinvestment in new products and markets, prioritizing long-term value over short-term EBITDA gains.

• Royalty backlog reached $815 million, growing 10% in fiscal 2026, providing strong mid-term revenue visibility.

QNX growth drivers and product innovation

• Growth fueled by increased content per vehicle, new design wins, and expansion into high-performance compute and zonal controllers.

• Launch of SDP 8.0 enables hardware scalability and higher value for OEMs, with all new programs adopting it.

• Alloy Core, developed with Vector, offers a comprehensive platform, potentially doubling or tripling ASPs.

• Strong adoption of SDP 8.0, with customers migrating from previous versions for better performance and cost efficiency.

• Recent wins include digital cockpit, ADAS systems in Europe, and a major BMW program, reflecting broad market traction.

China market strategy and competitive positioning

• QNX positioned as a global safety-certified platform, appealing to both domestic and export-focused Chinese OEMs.

• Collaborating with local Chinese vendors to accelerate deployment and tailor solutions for the market.

• Export requirements and safety certifications give QNX a competitive edge over local alternatives.