BlackBerry Stock Settles At 4-Month Low As Outlook Takes Sheen Off Q4 Beat, But Retail Optimism Grows

BlackBerry Limited (BB) stock fell sharply in Wednesday’s session after the provider of intelligent software and services to enterprises and governments issued lackluster guidance notwithstanding the forecast-beating quarterly results.

The Ontario, Canada-based company reported adjusted earnings per share (EPS) of $0.03 for the fourth quarter of fiscal year 2025. The bottom-line results were flat with the year-ago performance and exceeded the Finchat-compiled consensus of break-even results.

Revenue fell 7.3% year over year (YoY) to $141.7 million, also topping the $132.81-million consensus estimate. It is to be noted here that the year-ago quarter’s results included contribution from the now divested Cylance antivirus software business.

BlackBerry’s guidance issued in mid-December called for bottom-line results ranging from a loss of $0.01 per share to a profit of $0.01 per share and revenue of $126 million to $135 million.

CEO John Giamatteo said, “BlackBerry closed out this transformational fiscal year with another quarter of strong financial performance from all three divisions: QNX, Secure Communications and Licensing.”

The executive noted that the company achieved profitability and positive cash flow.

QNX and Secure Communications revenues exceeded the company’s guidance.

BlackBerry’s quarterly adjusted gross margin was 74% and the adjusted earnings before interest, tax, depreciation and amortization (EBITDA) also topped the guidance.

Looking ahead, the company guided first-quarter bottom-line results in the range of a loss of $0.01 per share to break-even and revenue of $107 million to $115 million. Analysts, on average, estimate break-even results and $121.47 million, respectively.

QNX revenue is estimated at $51 million to $55 million and Secure Communications revenue at $50 million to $54 million. 

The company expects fiscal year 2026 adjusted EPS of $0.08-$0.10 and revenue of $504 million to $534 million. The consensus estimates call for adjusted EPS and revenue of $0.10 and $530.81 million, respectively.

On Stocktwits, retail sentiment toward BlackBerry stock remained ‘extremely bullish’ (74/100) by late Wednesday, with the degree of optimism improving from a day ago. The message volume improved to ‘high’ levels. 

A  bullish retailer said they wouldn’t sell the stock unless it goes way higher. BlackBerry was a big beneficiary of the 2021 “meme-stock” mania.

Another user said the company would benefit from the Trump tariffs. Also, Tesla’s sales falling in Europe will increase demand for BlackBerry’s QNX software, they said.

BlackBerry stock slumped 9.12% on Wednesday and dropped an incremental 4.72% in the after-hours session. Wednesday’s close of $3.39 marks the lowest since Dec. 19.

The company’s shares have lost over 10% so far this year and traded off the 52-week high of $6.24, hit on Feb. 18.

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