Introduction
Canada's BlackBerry has predicted a revenue decline for fiscal 2026 due to anticipated weak spending on its cybersecurity products.
Context
- U.S.-listed shares of the Waterloo, Ontario-based company fell 4% in premarket trading.
- BlackBerry, once a dominant force in the smartphone market, has transitioned into selling software for devices and autonomous vehicles.
Developments
However, enterprises are now curbing their technology spending and optimizing costs, which is affecting firms like BlackBerry.
- The company forecasts revenue to be between $504 million and $534 million for the financial year ending in February next year, down from the $534.9 million reported in fiscal 2025.
- BlackBerry expects its cybersecurity unit, which provides intelligent security software to enterprises and governments, to report annual revenue between $230 million and $240 million, lower than the $272.6 million in the previous financial year.
- The company posted revenue of $141.7 million for the fourth quarter, which is lower than the $152.9 million reported a year ago.
- BlackBerry stated it completed the sale of the Cylance business, which uses machine learning to preempt security breaches, to Arctic Wolf for $160 million. The unit had required significant investment and was facing strong competition.
Conclusion
The future looks challenging for BlackBerry as it adapts to changing market conditions and a decline in technology spending impacting its cybersecurity operations.