The Canadian company BlackBerry (BB), once a dominant force in the smartphone market, is opening a new chapter in its development. On Wednesday, it forecast a decline in revenue for the 2026 fiscal year, as it expects weak spending on its cybersecurity products.
Shares of the company, based in Waterloo, Ontario, which are listed in the US, fell 4% in pre-market trading.
BlackBerry, which has long left the smartphone market, has shifted its focus to selling software for devices and autonomous vehicles. However, the current economic climate is forcing businesses to rein in their technology spending and optimize costs, which, in turn, is negatively affecting companies like BlackBerry.
The company predicts revenue in the range of $504 to $534 million for the fiscal year ending in February next year, which is lower than the $534.9 million reported for the 2025 fiscal year.
BlackBerry also expects its cybersecurity division, which provides intelligent software for security to businesses and governments, to report annual revenue between $230 and $240 million, down from $272.6 million in the previous fiscal year.
The company reported revenue of $141.7 million for the fourth quarter, down from $152.9 million a year ago.
BlackBerry stated that it has completed the sale of its Cylance business, which uses machine learning to prevent security breaches, to Arctic Wolf for $160 million.
The company sold the Cylance business to refocus its attention on regions with higher growth rates, as the division required significant investments and faced strong competition.
These changes reflect the company’s strategy to optimize its portfolio and focus on more promising areas. However, this restructuring process is not simple, as new technologies, such as artificial intelligence and machine learning, are playing an increasingly important role in the cybersecurity industry. Therefore, while BlackBerry is losing some of its previous revenue, it has a chance to become a leader in the market for intelligent security systems that can adapt to new challenges.
Due to the slowdown in the growth of the cybersecurity market, companies in this sector are forced to adapt their strategies to remain competitive. At the same time, new partners and markets could help BlackBerry stabilize its position and even regain growth momentum by targeting innovative solutions for businesses and governments.