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BlackBerry Shares Sink Despite Beating Earnings Estimates

MarketDash Editorial Team
6 hours ago
BlackBerry stock fell sharply Friday even after the company topped Wall Street expectations for both earnings and revenue in its third quarter. Declining revenues and a weak retention rate appear to be weighing on investor sentiment.

BlackBerry Limited (BB) shares took a beating Friday despite posting better-than-expected quarterly results. Sometimes beating Wall Street's numbers just isn't enough.

The Numbers Game

BlackBerry delivered adjusted earnings per share of 5 cents, edging past the consensus estimate of 4 cents. Revenue came in at $141.80 million, also topping the $137.39 million analysts were expecting.

Here's where things get interesting. Despite the beat, total company revenue actually declined $1.8 million year-over-year. Both GAAP and adjusted gross margin slipped by 1 percentage point compared to the prior year. The Secure Communications segment saw revenue fall year-over-year, and the dollar-based net retention rate dropped to 92%. That retention number matters because it shows whether existing customers are expanding their spending or pulling back.

Looking Ahead

For the fourth quarter, BlackBerry expects adjusted earnings per share between 3 cents and 5 cents, landing right at the consensus estimate of 4 cents. Revenue guidance of $138 million to $148 million brackets the $143.39 million consensus.

On a brighter note, the company raised its fiscal 2026 outlook. Adjusted EPS guidance jumped from 11-15 cents to 14-16 cents, versus the consensus of 14 cents. Revenue guidance also moved higher, from $519-$541 million to $531-$541 million, compared to the consensus estimate of $531.93 million.

Price Action: BlackBerry shares were down 8.31% to $3.96 at the time of writing.

Back to News

BlackBerry Shares Sink Despite Beating Earnings Estimates

MarketDash Editorial Team
6 hours ago
BlackBerry stock fell sharply Friday even after the company topped Wall Street expectations for both earnings and revenue in its third quarter. Declining revenues and a weak retention rate appear to be weighing on investor sentiment.

BlackBerry Limited (BB) shares took a beating Friday despite posting better-than-expected quarterly results. Sometimes beating Wall Street's numbers just isn't enough.

The Numbers Game

BlackBerry delivered adjusted earnings per share of 5 cents, edging past the consensus estimate of 4 cents. Revenue came in at $141.80 million, also topping the $137.39 million analysts were expecting.

Here's where things get interesting. Despite the beat, total company revenue actually declined $1.8 million year-over-year. Both GAAP and adjusted gross margin slipped by 1 percentage point compared to the prior year. The Secure Communications segment saw revenue fall year-over-year, and the dollar-based net retention rate dropped to 92%. That retention number matters because it shows whether existing customers are expanding their spending or pulling back.

Looking Ahead

For the fourth quarter, BlackBerry expects adjusted earnings per share between 3 cents and 5 cents, landing right at the consensus estimate of 4 cents. Revenue guidance of $138 million to $148 million brackets the $143.39 million consensus.

On a brighter note, the company raised its fiscal 2026 outlook. Adjusted EPS guidance jumped from 11-15 cents to 14-16 cents, versus the consensus of 14 cents. Revenue guidance also moved higher, from $519-$541 million to $531-$541 million, compared to the consensus estimate of $531.93 million.

Price Action: BlackBerry shares were down 8.31% to $3.96 at the time of writing.