Investing.com -- BlackBerry Ltd (NYSE: BB) shares rose 8% on Tuesday after the security software company reported its QNX operating system division reached a record royalty backlog exceeding $1.2 billion.

The backlog represents an increase of more than $250 million, or over 26%, from approximately $950 million reported at the end of fiscal year 2026. The growth reflects customer adoption of QNX's Software Development Platform 8.0 and the first design win of Alloy Kore, QNX's foundational automotive operating system.

The first Alloy Kore design win is valued at more than $100 million in estimated future royalties, marking the largest design win in QNX's history. The company said adoption of SDP 8.0 is expanding QNX's opportunity within next-generation, high-performance compute architectures as automakers consolidate vehicle functions onto centralized and domain-based compute platforms.

"Exceeding $1.2 billion in royalty backlog is an important milestone for BlackBerry and compelling evidence of the momentum we are building at QNX," said John Giamatteo, Chief Executive Officer of BlackBerry. "In just two quarters, our backlog has grown by more than $250 million from the approximately $950 million we previously reported, reflecting strong demand for our foundational software and the impact of our next generation of products."

Beyond automotive, General Embedded Markets and Physical AI based systems contributed to the 26% growth through design wins across robotics, industrial automation and medical devices.

QNX royalty backlog represents estimated future revenue from variable forecasted royalties based on QNX royalty rates and projections of anticipated volumes. The company noted that royalty revenue is recognized as customer programs enter production and volumes ramp.

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