Due to weak demand for cybersecurity services, BlackBerry Limited (BB.US) expects a decline in revenue for fiscal year 2026.

On Wednesday, Canadian company BlackBerry Limited (BB.US) predicted that its revenue for the fiscal year 2026 will decline due to sluggish spending on its network security products. As of the time of writing, the company, headquartered in Waterloo, Ontario, saw a 13% drop in its stock trading on the US market. BlackBerry Limited used to be a dominant force in the smartphone market but has now transformed into a supplier of devices and software for autonomous vehicles. However, businesses are now tightening their technology spending and optimizing costs, which in turn impacts companies like BlackBerry Limited. BlackBerry Limited expects revenue for the fiscal year ending in February of next year to be between $504 million and $534 million, lower than the $534.9 million reported for the fiscal year 2025. The company's cybersecurity department provides intelligent security software for enterprises and governments. The company expects annual revenue for this department to be between $230 million and $240 million, lower than the $272.6 million reported in the previous fiscal year. BlackBerry Limited reported fourth-quarter revenue of $1.417 billion, lower than the $1.529 billion in the same period last year. BlackBerry Limited announced that it has sold its Cylance business, which uses machine learning technology to prevent security vulnerabilities, to Arctic Wolf for $160 million. The sale of the Cylance business is aimed at refocusing the business on high-growth areas. This business requires significant investment and faces intense competition.