Why BlackBerry Stock Soured Today
BlackBerry’s stock fell sharply on Friday, dropping by 13.7% to levels last seen in mid-September. The decline came despite the company reporting better-than-expected earnings and revenue for its third quarter of fiscal year 2026.
During the Q3 FY2026 earnings call on December 18, 2025, CEO John J. Giamatteo presented the company’s results. Adjusted earnings per diluted share reached $0.05, an improvement from a breakeven result in the same period last year. Revenue also exceeded analyst forecasts, totalling $141.8 million—though this marked a slight decline of 1.8% compared to the previous year.
The company updated its full-year guidance, raising the lower end of its targets while leaving the upper end largely unchanged. However, investors appeared to focus on signs of slowing growth, particularly in recurring revenues. Market analysts suggested the drop in share price could be a case of 'selling the news' after a recent rally, despite the positive financial update. Giamatteo, who was confirmed as CEO for the fiscal year, outlined the company’s outlook for the remainder of 2026 during the call. His presentation included revised projections for the full year ending in February 2026.
BlackBerry’s stock now sits at its lowest point since September, reflecting investor concerns over momentum despite strong quarterly results. The company’s updated guidance and leadership stability under Giamatteo will be key factors as the fiscal year progresses.
