From Yahoo Finance: 2025-04-02 13:08:00

Shares of BlackBerry (NYSE: BB) dropped 8.6% on Wednesday, reaching a low of 21.2% at one point. The S&P 500 and Nasdaq Composite saw less movement. Despite exceeding estimates, BlackBerry’s revenue outlook disappointed investors.

BlackBerry’s fiscal 2026 revenue forecast of $504 million to $534 million fell short of the expected $567.3 million. The current-quarter revenue estimate of $107 million to $115 million also missed projections, leading to the stock’s sharp decline.

Investors were particularly worried about the Secure Communications unit, expected to generate $230 million to $240 million in fiscal 2026, down from $272.6 million the previous year. This was below Wall Street’s projection of $277 million.

BlackBerry had a decent quarter, with a 7% revenue drop to $141.7 million and earnings per share of $0.03. The company is shifting focus from smartphones to cybersecurity and IoT software. It’s a challenging time for BlackBerry, and investors may want to steer clear for now.

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*Stock Advisor returns as of April 1, 2025. Johnny Rice has no position in any of the mentioned stocks. The Motley Fool recommends BlackBerry.

For more information on why BlackBerry stock is plummeting today, visit The Motley Fool’s original article.

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