BlackBerry (BB) shares experienced a significant 24-hour plunge of 7.08% on Wednesday, following the company's release of its fourth-quarter results and fiscal 2026 outlook. Despite reporting better-than-expected fourth-quarter performance, the tech firm's forward-looking guidance fell short of analyst expectations, triggering a sell-off in the stock.

The Waterloo, Ontario-based company projected fiscal 2026 revenue between $504 million and $534 million, with a midpoint of $519 million, well below the analyst consensus of $550.6 million. Adjusted earnings per share for the full year are expected to range from $0.08 to $0.10, also missing the $0.10 per share estimate. Additionally, BlackBerry's first-quarter guidance disappointed, with projected revenue of $107 million to $115 million, falling short of the $128.4 million analyst expectation.

While BlackBerry's fourth-quarter results surpassed expectations, with revenue reaching $141.7 million and adjusted earnings per share of $0.03, the weak outlook overshadowed these positive results. CEO John Giamatteo highlighted strong performance across the company's three divisions - QNX, Secure Communications, and Licensing - and emphasized BlackBerry's improved financial position following the sale of its Cylance cybersecurity business. However, investors seem to be focusing on the company's future challenges rather than its recent achievements, as reflected in the stock's sharp decline.