BlackBerry Stock Plunges 13.54% on Month as Cost-Cutting Driven Earnings Fail to Offset Revenue Drop

BlackBerry’s stock fell to its lowest level since September 2025 on November 26, with an intraday decline of 4.10% as the share price continued a two-day losing streak. The decline pushed the stock to a 13.54% drop over the past month, significantly underperforming broader market indices such as the S&P 500 and Nasdaq, which posted gains during the same period.

The selloff reflects investor concerns over the company’s near-term prospects, despite a projected 100% year-over-year increase in earnings per share for the current quarter. Analysts highlighted that this earnings growth appears driven by cost-cutting measures rather than revenue expansion, as quarterly revenue is expected to contract by 7.79% to $529 million. The Zacks Consensus EPS estimate for the full fiscal year remains at $0.14, with total revenue forecast at $529 million, underscoring a stark divergence between profitability and sales trends.

Valuation metrics add complexity to the investment outlook. While BlackBerry’s Forward P/E ratio of 29.64 slightly exceeds the industry average, the projected revenue decline raises questions about the sustainability of its premium valuation. The company’s #3 (Hold) Zacks Rank and stagnant analyst sentiment suggest a neutral stance, with limited room for surprise ahead of its upcoming earnings report. Investors are advised to monitor whether the firm can reverse its revenue trajectory and align with the broader Computer and Technology sector’s strong performance, which currently ranks in the top 31% of industries.