BlackBerry Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Todd Coupland - CIBC Capital Markets - Analyst : So I wanted to ask a question on QNX in the macro environment. You talked about how you hadn't seen changes to production schedules but you're anticipating that that's going to happen in this current quarter. Is that assumption already being realized in the production schedules you're seeing? Or are you just building in that downside protection into the guide?

Question: Todd Coupland - CIBC Capital Markets - Analyst : Yeah. Great. And is there enough clarity in the market at this point to give you more confidence for the rest of the year? Or are you still concerned beyond this quarter about possible production disruptions?

Question: Luke Junk - Robert W. Baird & Co Inc - Analyst : Good afternoon. Thanks for taking the questions. I guess, John, I want to start with the comments you made on SDP 8.0 to the strong auto -- non-auto mix in the pipeline and that the overall pipeline grew by, I think, you said 55% in the quarter. Can you just help us size that big numbers in percentage terms, but trying to understand how material that is and maybe if you'd be able to square that with the backlog disclosures that you've made for QNX? Thank you.

Question: Luke Junk - Robert W. Baird & Co Inc - Analyst : Okay. Got it. And then on the share buybacks that being new here, I think I'm hearing you saying that the approach here is going to be more opportunistic and that there's not necessarily a strict mandate timing-wise, around the $100 million, but to the extent that the stock gives you opportunities zooming into that. Can you maybe just talk about your approach to buybacks?

Question: Trip Chowdhry - Global Equities Research - Analyst : Thank you. Congratulations on very good execution. Two questions here. First, I will ask about your wins in the US or the federal defense spending. I was wondering what kind of trends are you seeing? And what specific products from BlackBerry are having traction in the defense spend? And the second question I have is regarding a very solid execution and pipeline in QNX. Are there any specific categories of automotive where you're seeing more trend versus the rest? For example, are EVs still having more traction? Or is it hybrid or is it ICE? Any color on that will also be appreciated. Thank you so much.

Question: Trip Chowdhry - Global Equities Research - Analyst : Thank you so much. Congratulations again.

Question: Paul Treiber - RBC Capital Markets - Analyst : Thanks very much. Hopefully, you can hear me now. Yeah. We can. Go ahead, Paul. Yes, great. Just a question on the US federal government. Did you see any churn related to DOGE or any of the reduced procurement decisions there?

Question: Paul Treiber - RBC Capital Markets - Analyst : That's good to hear. Second question, just on QNX and the growth that you're seeing in SDP 8.0, the pipeline there. Is that on the automotive side? Is that additive to the existing pipeline for QNX -- or are you seeing some transition from the prior generations of QNX to SDP 8.0?

Question: Kingsley Crane - Canaccord Genuity - Analyst : Hi, Tim. Hi, John, how's it going? I want to echo my congrats on a really strong Q1. I just want to ask one thematic one to start out. Just curious how you're thinking about the balance between more tightly integrated systems versus more open systems in the software-defined vehicle space right now. Maybe you could compare what you're doing with Vector and TTTech [with export]. Thanks.

Question: Kingsley Crane - Canaccord Genuity - Analyst : Right. Yeah. Makes perfect sense. And I want to circle back as well to the SDP 8.0 pipeline, GEM at 43%. That's really encouraging. I guess like how would you characterize the quality and maturity of that GEM pipeline versus automotive? I say that just because I know you're moving more to make more serious moves to get more beachheads in those markets. So it's great that it's already at 43%.