LAS VEGAS - BlackBerry (NYSE:BB) Limited's subsidiary QNX announced today a collaboration with Microsoft (NASDAQ:MSFT) to facilitate the development of software for Software-Defined Vehicles (SDVs). This joint effort aims to streamline the process for automakers by leveraging Microsoft Azure’s cloud capabilities.
The QNX® Software (ETR:SOWGn) Development Platform (SDP) 8.0 is set to be available on Azure, providing a robust environment for automakers to create, test, and integrate software for next-generation vehicles and Internet of Things applications. The partnership also plans to extend to the QNX® Hypervisor and QNX® Cabin, a new reference architecture designed to help Original Equipment Manufacturers (OEMs) develop digital cockpits that are hardware agnostic. With a robust gross profit margin of 69.28% and moderate debt levels, BlackBerry maintains a FAIR financial health score according to InvestingPro analysis.
John Wall, Chief Operating Officer and Head of Product, Engineering and Services at QNX, emphasized the importance of a cloud-first approach in competitive development infrastructures. He stated that the collaboration with Microsoft enables the integration of Azure AI to support advanced technology early in the development cycle, thereby accelerating timelines and reducing risks.
Dayan Rodriguez, Corporate Vice President, Manufacturing & Mobility at Microsoft, highlighted the partnership as a commitment to empower the automotive industry with innovative technology to expedite innovation. He noted that the combined strengths of Azure and QNX will allow OEMs to fulfill the potential of SDVs.
At CES 2025, QNX is showcasing how the SDP 8.0 on Azure can be used for early testing and validation of software, aiming to identify and resolve issues early in the development process. The complete suite of QNX's automotive offerings is on display at the event, which runs from January 7-11, 2025.
QNX, established in 1980 and headquartered in Ottawa, Canada, is recognized for providing safe and secure operating systems and other technology solutions across various industries, including automotive, where its technology is deployed in over 255 million vehicles. Based on current trading levels, InvestingPro analysis suggests BlackBerry is fairly valued, with analysts setting price targets ranging from $2.71 to $6.00 per share. For deeper insights into BlackBerry's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
This information is based on a press release statement, which outlines the partnership's objectives to advance the development of automotive software through cloud computing.
In other recent news, BlackBerry Limited has made significant strides in its business operations. The company recently rebranded its IoT division to QNX, aiming to strengthen its position in the automotive and embedded software markets. BlackBerry's Q2 financial results for fiscal year 2025 exceeded expectations, reporting a total revenue of $145 million, despite a non-GAAP operating loss of $4 million. Looking ahead to Q3, BlackBerry expects IoT revenue of $56 to $60 million and Cyber revenue of $86 to $90 million, aiming to achieve positive cash flow and EBITDA in Q4.
Analysts from Baird, RBC Capital, and Canaccord Genuity have adjusted their financial outlooks for BlackBerry. Baird raised its price target to $3.50, RBC Capital increased the price target to $3.25, while Canaccord Genuity raised the price target to $3.00, all maintaining a neutral outlook on the stock. These revisions reflect BlackBerry's recent sale of its cybersecurity unit, Cylance, to Arctic Wolf and the dismissal of a lawsuit filed by former executive Neelam Sandhu, which positively influenced investor confidence.
The company has also seen significant developments with the sale of its cybersecurity unit, Cylance, to Arctic Wolf. The sale was noted as a strategic move that removed a significant uncertainty for BlackBerry's stock, according to RBC Capital. These are among the recent developments that have shaped BlackBerry's current position in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.