BlackBerry (BB) shares plummeted 5.31% in pre-market trading on Thursday, extending the previous day's losses, as investors reacted to the company's disappointing fiscal 2026 outlook and subsequent analyst downgrades. The continued sell-off follows a 7.08% drop on Wednesday after the company released its fourth-quarter results and forward-looking guidance.

Despite reporting better-than-expected fourth-quarter performance, BlackBerry's fiscal 2026 outlook fell short of analyst expectations. The company projected annual revenue between $504 million and $534 million, significantly below the consensus estimate of $550.6 million. Additionally, the first-quarter guidance disappointed, with projected revenue of $107 million to $115 million, falling short of the $128.4 million analyst expectation.

Adding to the negative sentiment, major financial institutions lowered their target prices for BlackBerry stock. RBC cut its target price to $3.75 from $4, while CIBC reduced its target to $6 from $7. These downgrades reflect growing concerns about the company's future performance and have likely contributed to the continued downward pressure on the stock price. As BlackBerry struggles to convince investors of its growth prospects, the market appears to be reevaluating the company's valuation in light of its weaker-than-anticipated outlook.