BlackBerry (BB, Financials) shares declined by 21.7% in premarket trading Wednesday after the Waterloo, Ontario-based company forecast revenue and earnings for fiscal 2026 that missed analyst estimates.
The company projected fiscal 2026 revenue between $504 million and $534 million, with a midpoint of $519 million. That is well below the $550.6 million average estimate from analysts, according to data compiled by Bloomberg. Adjusted earnings per share are expected to range from $0.08 to $0.10, with the high end of that range still underperforming the consensus estimate of $0.10 per share.
Guidance for the current quarter also fell short of expectations. BlackBerry expects first-quarter revenue between $107 million and $115 million, below the $128.4 million analysts projected. Secure Communications revenue, a key segment for the company, is expected to come in between $50 million and $54 million.
The outlook came on the heels of a stronger-than-expected fourth-quarter performance. Revenue for the quarter reached $141.7 million, a decrease of 18.1% from a year earlier, but ahead of the $132.8 million estimate from analysts. Adjusted earnings per share were $0.03, beating expectations by three cents. The company reported $42 million in operating cash flow for the period.
Chief Executive Officer John Giamatteo said in a statement the company's three divisions — QNX, Secure Communications, and Licensing — delivered solid financial results in the fourth quarter. He also said the company completed the sale of its Cylance cybersecurity business to Arctic Wolf, a transaction aimed at strengthening the balance sheet.
Giamatteo said the company now has a “solid” financial position that gives it flexibility in creating shareholder value.
