BlackBerry QNX Expands into Physical AI Ahead of Earnings

BlackBerry shares gained over 3% this week, reversing two consecutive weeks of losses as retail investors positioned ahead of the upcoming earnings report. The stock moved higher on renewed interest in the company’s QNX operating system, which is increasingly viewed as a foundational layer for Physical AI applications beyond its traditional automotive base.

According to data from GN markets/earnings, analysts project second-quarter revenue of $145.5 million and earnings per share of $0.04. This outlook follows strong first-quarter performance where revenue grew 26% year-over-year to $152.9 million, driven by the shift toward software-centric operations.

QNX Integrates With Sift For Live Data

BlackBerry’s QNX division announced a new collaboration with data platform Sift to enable real-time analysis of telemetry from embedded systems. The integration allows engineers to access live data streams directly from QNX-based devices without modifying the underlying operating system or device software.

This capability addresses a critical need in industries where rapid data processing is essential for safety and efficiency. By removing the requirement for software changes, the partnership lowers the barrier for deploying advanced analytics in industrial and robotic environments.

Expansion Beyond Automotive Into Industrial Sectors

While QNX software is already embedded in over 275 million vehicles globally, the company is actively expanding its footprint into robotics, factory automation, and medical equipment. CEO John Giamatteo described the physical AI segment as one of the fastest-growing businesses within the QNX portfolio, indicating a strategic pivot toward non-automotive embedded systems.

The growth in these sectors is supported by the increasing demand for reliable, real-time data handling in machines that interact with physical environments. This diversification reduces reliance on the automotive supply chain and opens new revenue streams in industrial automation.

Financial Performance Reflects Software Focus

BlackBerry’s transition away from smartphones to a software-focused model has significantly improved its financial profile. In the first quarter, adjusted EBITDA surged 144% to $36.3 million, while gross margin expanded to approximately 79%. Operating cash flow also turned positive at $4.6 million, signaling improved operational efficiency.

The company is scheduled to release its second-quarter results on September 24. Investors will be watching to see if the momentum from the QNX-Sift partnership and the broader Physical AI push sustains the high growth rates seen in the prior quarter.