BlackBerry stock climbed 5.3% in morning trading Tuesday as investor interest continued in the company's QNX embedded software business.

The company reported second-quarter fiscal 2027 revenue of $163.3 million, representing a 26% increase from the prior year and exceeding Wall Street expectations. Adjusted earnings per share came in at $0.07, above the $0.04 consensus estimate.

Following the quarterly results, management raised its full-year fiscal 2027 revenue guidance to a range of $616 million to $636 million. The company also lifted its adjusted earnings per share outlook to $0.19 to $0.22.

BlackBerry has shifted its business focus from legacy handset manufacturing to software products. The QNX platform has secured several automotive contracts, including the Alloy Kore deal, a safety-certified real-time operating system developed with Vector for software-defined vehicles. QNX was also selected to power a smart camera system for a major German automaker's global passenger platform scheduled to launch in Asia-Pacific starting in 2027.

Canaccord adjusted its price target on BlackBerry to $9.50 from $10.30 while keeping a Hold rating on the stock.