Braze (NASDAQ:BRZE) Updates FY 2027 Earnings Guidance

Braze (NASDAQ:BRZE) updated its FY 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.640-0.650 for the period, compared to the consensus estimate of 0.350. The company issued revenue guidance of $910.0 million-$913.0 million, compared to the consensus revenue estimate of $898.4 million. Braze also updated its Q3 2027 guidance to 0.130-0.140 EPS.

Braze Stock Performance

BRZE stock opened at $30.31 on Wednesday. Braze has a 1 year low of $15.26 and a 1 year high of $37.33. The stock has a market capitalization of $3.41 billion, a price-to-earnings ratio of -27.06 and a beta of 0.88. The stock’s fifty day moving average is $27.57 and its two-hundred day moving average is $23.54.

Braze (NASDAQ:BRZE) last released its quarterly earnings results on Tuesday, September 8th. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.16 by $0.03. Braze had a negative net margin of 15.51% and a negative return on equity of 17.52%. The business had revenue of $227.23 million during the quarter, compared to analyst estimates of $220.27 million. During the same quarter in the prior year, the firm earned $0.15 earnings per share. The company’s quarterly revenue was up 26.2% on a year-over-year basis. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. As a group, analysts predict that Braze will post -0.78 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have commented on BRZE shares. The Goldman Sachs Group set a $34.00 target price on shares of Braze and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braze in a report on Tuesday, July 7th. Citizens Jmp reiterated a “market outperform” rating and set a $35.00 price objective on shares of Braze in a research report on Thursday, May 28th. Citigroup reissued a “market outperform” rating on shares of Braze in a report on Wednesday. Finally, Mizuho lowered their target price on Braze from $40.00 to $32.00 and set an “outperform” rating on the stock in a research report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $36.59.

Insiders Place Their Bets

In other news, CTO Jonathan Hyman sold 42,000 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $32.47, for a total value of $1,363,740.00. Following the completion of the sale, the chief technology officer directly owned 1,143,219 shares of the company’s stock, valued at approximately $37,120,320.93. This represents a 3.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Astha Malik sold 15,724 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $29.57, for a total transaction of $464,958.68. Following the completion of the transaction, the insider owned 326,233 shares of the company’s stock, valued at $9,646,709.81. This trade represents a 4.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 203,568 shares of company stock worth $6,096,461. 12.50% of the stock is owned by corporate insiders.

Braze News Summary

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Q2 results exceeded estimates: Braze reported adjusted earnings of $0.19 per share versus the $0.16 consensus, while revenue rose 26.2% year over year to $227.23 million, above expectations of $220.27 million. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: Management raised its outlook: Fiscal 2027 EPS guidance was set at $0.64-$0.65, well above the $0.35 analyst consensus, while revenue guidance of $910 million-$913 million exceeded the $898.4 million consensus. Third-quarter EPS guidance of $0.13-$0.14 and revenue guidance of $229 million-$230 million also topped estimates. Braze Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Improving profitability trends: Braze highlighted record second-quarter free cash flow, improving operating leverage and increasing customer adoption of its AI-powered engagement tools. These factors support the company’s longer-term growth and margin expansion story. Braze Q2 2027 Earnings Call Highlights

Hedge Funds Weigh In On Braze

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BRZE. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Braze by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,224 shares of the company’s stock worth $1,415,000 after buying an additional 1,700 shares in the last quarter. Intech Investment Management LLC boosted its stake in Braze by 18.8% during the first quarter. Intech Investment Management LLC now owns 40,281 shares of the company’s stock valued at $1,453,000 after buying an additional 6,379 shares in the last quarter. Prudential Financial Inc. acquired a new position in Braze during the second quarter worth about $272,000. Russell Investments Group Ltd. raised its position in Braze by 1,353.0% in the second quarter. Russell Investments Group Ltd. now owns 9,619 shares of the company’s stock worth $270,000 after acquiring an additional 8,957 shares in the last quarter. Finally, Amundi raised its position in Braze by 8.9% in the second quarter. Amundi now owns 32,581 shares of the company’s stock worth $918,000 after acquiring an additional 2,657 shares in the last quarter. 90.47% of the stock is owned by institutional investors.

Braze Company Profile

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.