Shares of BlackBerry (BB -4.46%) fell off a cliff this week. The company's stock lost 24.2% for the week as of 2:40 p.m. ET and was down as much as 28.6% earlier in the week. The steep decline came as the S&P 500 (^GSPC -5.20%) lost a whopping 8.8%.

The Canadian tech company reported quarterly results that contained some positives, but greatly disappointed in its revenue outlook.

Wall Street wanted more

The company, which has transitioned away from being a cell phone maker to a cybersecurity and Internet of Things (IoT) software provider, projected 2026 revenue of $504 million to $534 million. That's well 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 -- now 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.

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.

Not a good time to report weak guidance

The weak guidance came just before an international trade war was kicked off after the market closed on Wednesday. President Trump's sweeping tariffs -- the most significant trade action since at least the 1930s -- are clouding the economic picture and stoking fears of a recession. It's possible the already dismal forecast from BlackBerry could end up looking optimistic, given a macro environment that now looks darker.