BlackBerry (BB) shares plummeted 7.08% on Thursday, continuing a downward trend that began after the company released its fourth-quarter results and fiscal 2026 outlook. The Canadian technology firm's stock faced significant pressure as investors reacted to disappointing future guidance and subsequent analyst downgrades.
Despite reporting better-than-expected fourth-quarter performance, with revenue reaching $141.7 million and adjusted earnings per share of $0.03, BlackBerry's forward-looking projections fell short of market expectations. The company forecasted fiscal 2026 revenue between $504 million and $534 million, significantly below the consensus estimate of $550.6 million. Additionally, first-quarter guidance disappointed, with projected revenue of $107 million to $115 million, well under 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.
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