By Ketki Saxena
Invesitng.com -- BlackBerry (TSX:BB)), the former smartphone giant turned cybersecurity and Internet of Things (IoT) provider, announced that it forecasts a 54% increase in sales by 2026, primarily driven by growth in its cybersecurity business. The company expects revenue to reach between $880 million and $960 million by that year, with gross margin for the cybersecurity unit predicted to rise by between 400 and 600 basis points.
Presently, 60% of BlackBerry's revenues come from its cybersecurity operations, while IoT contributes to 35%.
Despite a decline in revenues in recent years, particularly within its core cybersecurity segment, BlackBerry's management also remains bullish about the growth potential of its IoT segment. The company has reiterated its fiscal 2024 revenue forecast of $665 million to $700 million, with a projected 20% growth in its IoT business.
This optimistic outlook helped BlackBerry shares close 5.87% higher today, making it one of the top gainers on the TSX today. BlackBerry shares surged 60% this year, with a remarkable 30% increase in May alone. The company's shares have benefitted from the recent announcement that it is considering a reconfiguration of its business portfolio to create better value for shareholders.
In December, BlackBerry had stated that revenue from its cybersecurity business would remain flat during H1 2023 but would experience growth in H2. The company's focus on these two segments comes as part of its ongoing transition from a smartphone manufacturer to a software and services provider.