Shares of BlackBerry (BB 1.25%) are falling on Wednesday. The technology company's stock lost 8.6% as of 3:30 p.m. ET and was down as much as 21.2% earlier in the day. The steep decline comes as the S&P 500 and Nasdaq Composite showed more modest movement.
The Canadian tech company and once king of the cell-phone market reported quarterly results that while beating estimates, delivered a disappointing revenue outlook.
NYSE: BB
Key Data Points
Not what investors had hoped
BlackBerry projected fiscal 2026 revenue of $504 million to $534 million, falling significantly short of analysts' expectations of $567.3 million. The company's current-quarter revenue estimate of $107 million to $115 million also missed projections, triggering the sharp sell-off.
Particularly concerning to investors was the forecast for BlackBerry's Secure Communications unit -- a significant part of BlackBerry's total business -- which the company expects to generate $230 million to $240 million in fiscal 2026, down from $272.6 million in the prior year and much lower than the $277 million Wall Street projected.
Q4 beat expectations
Despite the poor forecast, the company posted a positive quarter, at least compared to analysts expectations. Revenue fell 7% year over year to hit $141.7 million. Earnings per share came in at $0.03. The company is continuing to transition from a smartphone manufacturer to a cybersecurity and Internet of Things (IoT) software provider and it continues to be a difficult time for it (although I suppose it has been ever since the iPhone came out). I think there are still too many unknowns and investors should avoid the stock for now.
