BlackBerry (BB) shares have been a major outperformer in 2026, but the options market believes it will rip higher following the earnings event on September 24.
Consensus is for the Canadian company to post about $144 million in revenue, representing about an 11% growth on a year-over-year basis.
Heading into the quarterly print, BlackBerry stock is trading at more than twice its price at the start of 2026, but down some 35% versus its year-to-date high.
Options sentiment is bullish for BlackBerry stock
According to Barchart, the put-to-call ratio on options contracts expiring in early October sits at 0.70 currently, indicating a dovish skew (a reading below 1.00 is typically interpreted as bearish).
Data also pegs the upper price on those contracts at $9.4 – signaling potential for a 12.62% rally in BB shares on the back of the quarterly print.
Investors should also note that technical momentum is currently in BlackBerry’s favor as well; the stock sits just under its 50-day and 100-day moving averages (MAs) – with an RSI in the mid-50s pointing to significant buying pressure.
If the release helps BB rip through these near-term resistances, algorithmic buying could accelerate the upward momentum in the days ahead.
What would drive strength in BB’s fiscal Q2?
BlackBerry’s anticipated strength in Q2 is largely anchored by resilient momentum across its core Internet of Things (IoT) and Cybersecurity segments.
The firm’s automotive-focused QNX platform remains a “pivotal growth engine”, boosted by new ecosystem integrations – such as adding support for Hailo-8 AI accelerators and growing physical AI/GEM robotics frameworks – which drive software development license sales and real-time telemetry.
Concurrently, demand for zero-trust cybersecurity is fueled by escalating AI-driven cyber threats and strict compliance mandates, compelling enterprise and government clients to adopt sovereign, end-to-end endpoint protection.
Coupled with ongoing cost optimizations aimed at margin expansion, these dual pillars position BlackBerry shares to capitalize on structural software tailwinds and deliver top-line upside relative to consensus expectations.
BlackBerry isn’t inexpensive to own
On the flip side, while institutional positioning and technical patterns favour a post-earnings rally, BB stock’s valuation metrics urge caution – at least for conservative investors.
Trading at a forward price-to-earnings (P/E) multiple of more than 60x, the company carries rather high expectations that leave virtually no room for operational slip-ups.
Unless management delivers a clear top-line beat alongside upward revisions to its full-year annual recurring revenue (ARR) outlook, any profit-taking or macroeconomic softness could result in a sharp pullback, making execution crucial for sustaining this year’s dramatic run.
Interestingly, though, Wall Street remains bullish as ever on BlackBerry for the remainder of 2026.
While the consensus rating on BB sits at Hold only, the mean price target of about $10.61 signals potential upside of another 25% from here.
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