Braze, Inc. operates a customer engagement platform that connects consumers and brands worldwide. Its offerings include software development kits for data ingestion and mobile/web notifications, REST APIs for data import/export and workflow triggers, partner data integrations, data transformation, cloud data ingestion, real-time data streaming via Braze Currents, and Snowflake Data Sharing. The platform also provides segmentation, segment insights, predictive analytics, and tools such as Canvas for orchestration, campaigns, event and API triggering, marketing pressure management, reporting and analytics, content generation, and AI-powered features like decisioning studio and personalized variants. Formerly known as Appboy, Inc., it changed its name to Braze, Inc. in November 2017 and was incorporated in 2011, headquartered in New York, New York.
Braze Beats Q2 but Weak Q3 Profit Outlook Sinks Shares
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Q2 Beat and Raised Full-Year Revenue Guidance Braze reported Q2 revenue of $227 million, up 26% year over year, and raised full-year revenue guidance to $910–$913 million. This shows the core business is still growing and gave investors a reason to be optimistic before the profit warning.
It is the main positive fundamental result that contrasts with the negative guidance.
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Weak Q3 Profit Guidance Triggers Selloff Braze guided Q3 non-GAAP EPS to 13–14 cents, below the 16 cents analysts expected, due to costs from its Forge conference, global events, and new sales hires. The stock fell as much as 19% as investors worried about near-term margins and slowing growth.
This is the direct cause of the sharp stock drop and the main new negative event.
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AWS Partnership and Strong AI Adoption Braze announced a three-year strategic collaboration with AWS to boost co-selling and Marketplace adoption. Paid adoption of BrazeAI tools reached about one-third of large customers, up 900 basis points, and BrazeAI Decisioning Studio added $6.6 million in quarterly revenue.
It shows a concrete growth driver that could offset margin concerns over time.
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Sector AI Rally Provides Temporary Lift On August 28, Braze jumped 10% as part of a broad enterprise software rally fueled by AI-driven earnings from Salesforce, CrowdStrike, and Okta. The move was not based on Braze-specific news and faded once its own guidance disappointed.
It explains the earlier price spike and shows how quickly sentiment reversed.
Q3 2026
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Braze Beats Q2 but Weak Q3 Profit Outlook Sinks Shares
▲
Q2 Beat and Raised Full-Year Revenue Guidance Braze reported Q2 revenue of $227 million, up 26% year over year, and raised full-year revenue guidance to $910–$913 million. This shows the core business is still growing and gave investors a reason to be optimistic before the profit warning.
It is the main positive fundamental result that contrasts with the negative guidance.
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Weak Q3 Profit Guidance Triggers Selloff Braze guided Q3 non-GAAP EPS to 13–14 cents, below the 16 cents analysts expected, due to costs from its Forge conference, global events, and new sales hires. The stock fell as much as 19% as investors worried about near-term margins and slowing growth.
This is the direct cause of the sharp stock drop and the main new negative event.
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AWS Partnership and Strong AI Adoption Braze announced a three-year strategic collaboration with AWS to boost co-selling and Marketplace adoption. Paid adoption of BrazeAI tools reached about one-third of large customers, up 900 basis points, and BrazeAI Decisioning Studio added $6.6 million in quarterly revenue.
It shows a concrete growth driver that could offset margin concerns over time.
◆
Sector AI Rally Provides Temporary Lift On August 28, Braze jumped 10% as part of a broad enterprise software rally fueled by AI-driven earnings from Salesforce, CrowdStrike, and Okta. The move was not based on Braze-specific news and faded once its own guidance disappointed.
It explains the earlier price spike and shows how quickly sentiment reversed.
News & notes movingBRZE
United States
Artificial Intelligence▲
Needham Names BRZE, NAVN, TTAN as Top SaaS Picks After Meta Selloff
Needham analyst Scott Berg named Braze, Navan, and ServiceTitan as his top end-of-year picks in the SaaS sector following a market selloff triggered by Meta's Enterprise Platform announcement. Berg said the new offering does not directly compete with enterprise software vendors in his coverage universe, viewing it as the final step in Meta's year-long shift from consumer AI to enterprise AI. He expects the platform to compete with frontier model vendors like Anthropic and OpenAI for parts of the UI layer or personal productivity agents rather than full-blown enterprise software, likely at a lower price point, with possible expansion into cloud hyperscale computing to challenge AWS, Azure, or GCP. On Braze, Berg sees a one-quarter growth slowdown as comp and timing issues rather than a demand slowdown; on Navan, he sees a favorable third-quarter setup as demand trends remain high; and on ServiceTitan, he leans into the Max AI narrative as a revenue driver into calendar year 2027.
Oppenheimer names Microsoft, ServiceNow and Braze as top software application picks
Oppenheimer analysts said the artificial intelligence transition in software has moved beyond experimentation into a phase where companies must demonstrate measurable returns on investment, and named Microsoft, ServiceNow and Braze as their top picks in the software applications sector. The firm said the strongest setup exists among system-of-record vendors and businesses with seat-plus-consumption pricing models, which combine defensible customer relationships with direct exposure to rising AI usage. Microsoft was highlighted for accelerating platform demand, disciplined capital allocation and unmatched distribution across a massive installed base, and has already built a business with over $1 billion in AI-related revenue. ServiceNow combines best-in-class growth and cash flow generation at scale with compelling medium-term targets and, like Microsoft, has established an AI business exceeding $1 billion in revenue. Oppenheimer views Braze as a system-of-record for customer engagement and profitable growth, making it one of the most attractive risk-reward opportunities in their coverage universe, with durable advantages anchored in proprietary data, workflow context, deterministic functionality and enterprise-grade security and governance. The primary risk cited is that AI spending could crowd out broader software budgets and that margin pressure may persist longer than expected.
Artificial Intelligence › AI Applications & Copilots ▲Demand
BRZE · Capital · Positive Oppenheimer names Braze a top software pick, citing attractive risk-reward and durable data/workflow advantages.
MSFT · Capital · Positive Oppenheimer names Microsoft a top software application pick, highlighting accelerating platform demand and over $1B in AI revenue.
NOW · Capital · Positive Oppenheimer names ServiceNow a top pick, citing best-in-class growth, cash flow, and over $1B in AI revenue.
Midday Movers: Meta Rises, Casey's Falls, Signet Jumps
In midday trading, several stocks made notable moves. Centerspace jumped over 8% after announcing an all-stock merger with Independence Realty Trust, creating a residential REIT with an enterprise value of $8.1 billion, with Centerspace shareholders receiving about 3.8 shares of IRT common stock per share. Academy Sports and Outdoors gained 8% after lifting its adjusted earnings outlook for fiscal 2027 to $6.50-$6.90 per share, above the prior range and the FactSet consensus of $6.43. Meta Platforms rose 6% following the unveiling of a personal AI agent app. Mission Produce popped 4% after beating FactSet expectations for both earnings and revenue in its fiscal third quarter. Apple slipped 1% ahead of an expected iPhone announcement. Casey's General Stores dropped over 15% despite beating earnings and revenue estimates, due to a 0.3% decline in fuel sales and slightly lower-than-expected growth in prepared food and beverage sales. Signet Jewelers surged 19% after reporting adjusted earnings of $2.19 per share, beating the FactSet estimate of $1.74, and raising full-year guidance. ServiceTitan fell over 30% after its third-quarter revenue guidance missed estimates, despite beating second-quarter revenue at $292.8 million versus $285.9 million expected. Braze dropped 19% on a revenue miss, though it beat on earnings per share. Chime Financial rose 4% after better-than-expected second-quarter earnings and third-quarter revenue guidance of $680-$690 million, surpassing the $640.6 million estimate.
ASO · Capital · Positive Academy Sports lifted its adjusted earnings outlook for fiscal 2027 above prior range and consensus.
AVO · Capital · Positive Mission Produce beat FactSet expectations for both earnings and revenue in its fiscal third quarter.
BRZE · Capital · Negative Braze dropped 19% on a revenue miss, though it beat on earnings per share.
CASY · Demand · Negative Casey's fell over 15% despite beating estimates, due to a 0.3% decline in fuel sales and weaker prepared food and beverage sales growth.
CHYM · Capital · Positive Chime rose after better-than-expected Q2 earnings and strong Q3 revenue guidance.
CSR · Capital · Positive Centerspace jumped over 8% on announcing an all-stock merger with Independence Realty Trust.
Braze stock fell 12% to $26.58 after the company guided fiscal third-quarter adjusted earnings below consensus, overshadowing a second-quarter beat and raise. Revenue reached $227.23 million, up 26.2% year over year, with non-GAAP EPS of $0.19 beating the $0.16 estimate, but the Q3 EPS guidance of $0.13 to $0.14 missed Street models. Meanwhile, Klaviyo rose 3% to $18.42, and peers Twilio, HubSpot, and Monday.com showed no sympathy selling, with the iShares Expanded Tech-Software Sector ETF flat at $102.90, indicating a single-name repricing. Bulls point to $1.1 billion in remaining performance obligations, up 27%, and a fresh $50 million buyback, while bears cite softer near-term margins and demand proof of AI leverage. Braze's Q3 margin pressure is tied to its Forge conference, global events, and new sales capacity added ahead of next year.
U.S. stock futures traded below the flatline on Wednesday as oil prices climbed above $100 a barrel and investors awaited inflation data that could reinforce expectations for the Federal Reserve to raise interest rates later this month. By 06:13 ET, S&P 500 futures had fallen 19 points, or 0.3%, while Nasdaq 100 futures were down 134 points, or 0.5%, and Dow Jones futures had slipped 206 points, or 0.4%. Meta Platforms shares surged 3.6% in premarket trading after the company launched Muse, its autonomous AI personal agent, and introduced a tiered AI subscription model with plans at $20 and $100 per month. Evommune shares fell 13.9% to $11.26 after its EVO756 drug candidate failed to meet primary and secondary endpoints in a Phase 2b trial for atopic dermatitis, and the company will not advance it in that indication. Braze shares tumbled 11.5% despite beating fiscal second-quarter estimates, as its third-quarter profit guidance fell short of consensus and growth showed signs of slowing. NETGEAR shares jumped 8.9% after the FCC banned imports of new consumer routers manufactured outside the U.S., a move that could benefit NETGEAR due to its existing FCC approval exemption.
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Competition
Cybersecurity & Digital Trust › Endpoint & Network Security Competition
Artificial Intelligence › AI Applications & Copilots ▲Competition
BRZE · Capital · Negative Braze tumbled 11.5% as its third-quarter profit guidance fell short of consensus and growth showed signs of slowing.
EVMN · Technology · Negative Evommune fell 13.9% after its EVO756 drug candidate failed to meet primary and secondary endpoints in a Phase 2b trial.
META · Technology · Positive Meta surged 3.6% after launching Muse, its autonomous AI personal agent, and a tiered AI subscription model.
NTGR · Regulation · Positive NETGEAR jumped 8.9% after the FCC banned imports of new consumer routers made outside the U.S., potentially benefiting NETGEAR via its existing FCC approval exemption.
Braze Raises FY2027 Revenue Guidance to $910M-$913M
Braze reported second-quarter fiscal 2027 revenue of $227 million, up 26% year-over-year, and raised its full-year revenue guidance to a range of $910 million to $913 million, alongside higher operating income guidance. The company also announced a three-year strategic collaboration agreement with AWS to accelerate co-sell and Marketplace adoption. Paid adoption of BrazeAI tools reached roughly one-third of its large customer cohort, up about 900 basis points from the prior quarter, and BrazeAI Decisioning Studio contributed $6.6 million in quarterly revenue. Non-GAAP operating income was $22 million, with non-GAAP net income of $21 million or $0.19 per share, and the company completed its $50 million accelerated share repurchase program in August. Management cited competitive takeaways and vendor consolidation as drivers of bookings strength, while noting customer cost-consciousness and premium messaging mix pressures.
ServiceTitan, Mission Produce, Chime Financial Lead After-Hours Moves
In after-hours trading, several stocks made notable moves. ServiceTitan's stock tumbled 19% after issuing current-quarter revenue guidance slightly below analyst forecasts, despite beating consensus estimates on both lines in the second quarter. Casey's General Stores fell 10% despite beating expectations for the first fiscal quarter, as it forecast inside same-store sales growth of 2% to 5% for the full year. Mission Produce shares rose 7.5% after beating every analyst polled by FactSet on earnings per share and revenue in its fiscal third quarter. Braze dropped nearly 10% following weaker-than-expected earnings guidance, projecting non-GAAP EPS of 13 to 14 cents versus the 16 cents analysts expected. Chime Financial jumped almost 10% after providing upbeat third-quarter and full-year guidance and announcing a $590 million cash deal to buy Stride Bank. InnovAge rallied 11% on strong full-year guidance, though its fourth-quarter EPS slightly missed forecasts.
AVO · Capital · Positive Mission Produce beat every analyst's EPS and revenue estimates in its fiscal third quarter, driving shares up 7.5%.
BRZE · Capital · Negative Braze dropped nearly 10% after guiding to weaker-than-expected non-GAAP EPS of 13-14 cents versus 16 cents expected.
CASY · Capital · Negative Casey's fell 10% as it forecast full-year inside same-store sales growth of only 2% to 5%, despite beating first-quarter expectations.
CHYM · Capital · Positive Chime jumped almost 10% on upbeat Q3 and full-year guidance and a $590 million cash deal to buy Stride Bank.
INNV · Capital · Positive InnovAge rallied 11% on strong full-year guidance, though its fourth-quarter EPS slightly missed forecasts.
TTAN · Capital · Negative ServiceTitan issued current-quarter revenue guidance slightly below analyst forecasts, sending shares down 19% after hours.
Braze is scheduled to announce its fiscal second-quarter earnings on Tuesday, September 8th, after market close. The consensus EPS estimate is $0.16, up 6.7% year over year, while the consensus revenue estimate is $220.26 million, up 22.3% year over year. Over the past two years, Braze has beaten EPS estimates 63% of the time and revenue estimates 100% of the time. In the last three months, EPS estimates have seen one upward revision and zero downward, while revenue estimates have seen two upward revisions and zero downward.
Enterprise Software Stocks Surge on AI-Driven Earnings
Shares of enterprise software companies, including Braze, Procore Technologies, PTC, Samsara, and Zeta Global, traded up in the afternoon session after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth rather than threatening legacy business models. The sector-wide rally was fueled by stronger-than-expected results from major tech firms, with Salesforce, CrowdStrike, and Okta highlighting AI as a catalyst for adoption and monetization. Salesforce's Agentforce reached $1.5 billion in annual recurring revenue, and its Slackbot surpassed 1 million active users within five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta reported that AI-focused identity offerings drove about 30% of new bookings and increased average contract values by roughly 40%. Among the movers, Braze jumped 10%, Procore Technologies rose 6.4%, PTC gained 4.4%, Samsara climbed 5.5%, and Zeta Global advanced 6.9%, with Salesforce surging 20%.
Braze Sets September 8 Date for Fiscal Q2 2027 Results
Braze announced it will release financial results for the second quarter of fiscal 2027 after U.S. markets close on Tuesday, September 8, 2026, followed by a webcast conference call at 4:30 pm ET. The company also said Pearce Dolan will join as Chief Product Officer effective August 24, 2026, reporting to Cofounder and CEO Bill Magnuson. Dolan previously served as Head of Product at Deel and before that as Head of Product at Revolut, bringing nearly 20 years of product and technology experience. Braze stated that Dolan will lead product strategy and vision, accelerating momentum in AI-driven customer engagement.
Braze Chief Business Officer Sells 51,440 Shares for $1.4 Million Under Trading Plan
Braze Chief Business Officer Astha Malik sold 51,440 shares of Class A Common Stock on July 15, 2026, generating gross proceeds of approximately $1.4 million at an execution price of $26.39 per share. The transaction was executed under a Rule 10b5-1 trading plan adopted on October 15, 2025, and represented a 14% reduction in her direct equity holdings. Following the sale, Malik retains direct ownership of 311,794 shares, valued at $8.17 million based on the July 15 closing price of $26.21, and continues to hold derivative securities. The stock had a one-year total return of negative 2% at the time of the sale. In its first quarter of fiscal year 2027, ended April 30, the company reported a 30.2% year-over-year increase in revenue, driven by new customers, upsells, and renewals.
Paylocity, Rapid7, and Braze Shares Skyrocket Amid Rotation Into Enterprise Software
Paylocity, Rapid7, and Braze shares surged in afternoon trading as investors rotated into oversold enterprise software names while taking profits in semiconductor stocks. Paylocity jumped 5.4%, Rapid7 gained 5.8%, and Braze climbed 5.6%. The broader move saw ServiceNow rise 4.3% and Salesforce add 2.4%, even as the Nasdaq retreated and Micron fell 4%. The shift reflects growing confidence that software companies can monetize artificial intelligence through premium add-ons, with ServiceNow raising its AI contract target to $1.5 billion and Salesforce scaling its Agentforce platform. Rapid7 remains down 16.4% year-to-date and trades 47.8% below its 52-week high of $22.86.
StockStory highlights Braze as cash-heavy stock to watch, flags WEBTOON and Visteon as sells
StockStory identifies Braze as a cash-heavy stock with competitive advantages, while naming WEBTOON and Visteon as facing challenges. Braze holds a net cash position of $306.6 million, representing 12.6% of its market cap, and has demonstrated billings growth averaging 32.1% over the last year, with estimated revenue growth of 18.8% for the next 12 months. WEBTOON, with a net cash position of $574.5 million or 36.5% of market cap, is flagged for sluggish monthly active user trends and a 73.5% annual decline in earnings per share over two years. Visteon, holding $385 million in net cash or 12% of market cap, faces annual sales declines of 1.7% over two years and a gross margin of 12.1%.
BRZE · Capital · Positive StockStory highlights Braze's strong net cash position and billings growth, suggesting financial strength and competitive advantages.
VC · Demand · Negative StockStory flags Visteon for annual sales declines of 1.7% over two years, indicating weak end-customer demand.
WBTN · Demand · Negative StockStory flags WEBTOON for sluggish monthly active user trends and a 73.5% annual decline in earnings per share, indicating weak user engagement and demand.
Braze announced its FQ1 2027 results on May 27, reporting 30% year-over-year revenue growth to $211.0 million, marking its fourth consecutive quarter of organic growth acceleration. The company's customer base expanded to 2,713, driven by strong demand for its AI-powered suite including BrazeAI Operator, Agent Console, and Decisioning Studio. Braze achieved a non-GAAP operating income of $10.5 million and free cash flow of $26.8 million, while also launching new products such as Braze Creative Studio and securing client expansions with global brands like Subway and Regal Cinemas. The company maintained a 110% dollar-based net retention rate, underscoring its ability to scale and help brands transform direct-to-consumer relationships.
Goldman Sachs Says Klaviyo and Braze Could Surge at Least 60%
Goldman Sachs analyst Gabriela Borges sees two software stocks, Klaviyo and Braze, poised to gain at least 60% over the next 12 months as AI reshapes the customer experience market. Borges rates Klaviyo a Buy with a $26 price target, implying 74.5% upside, citing its high-20s revenue growth, expansion potential, and new product cycles despite a recent CFO departure and growth slowdown. She also rates Braze a Buy with a $34 target, suggesting about 62% upside, highlighting its ability to take share from legacy marketing tools and deliver 20% operating margins by 2029. Both stocks carry unanimous Strong Buy consensus ratings from the broader analyst community, with average targets pointing to roughly 101% upside for Klaviyo and 67% for Braze.
Braze Inc. Is One of the Worst AI Stocks Under $30, Per Short Sellers
Braze Inc. is one of the 10 worst artificial intelligence stocks under $30 according to short sellers. The broader consensus sentiment around the stock remained strongly bullish as of the close of June 23, with a median 1-year price target of $35.07 offering more than 75% upside potential. On May 29, Citi analyst Tyler Radke lowered the target price from $49 to $48 while maintaining a Buy rating, noting resilient fundamentals and encouraging recent earnings. Earlier on May 28, Mizuho cut its target from $40 to $32 with an Outperform rating, citing multiple contractions but acknowledging strong first-quarter results and growing traction for Braze's AI offerings.
BRZE · Capital · Neutral Short sellers list Braze as one of worst AI stocks under $30, but analysts maintain Buy/Outperform ratings with price targets above current price, creating mixed signals.
Braze Stock Jumps 7.4% on Goldman Sachs Buy Rating
Braze shares surged 7.4% on Friday, closing sharply higher while the S&P 500 and Nasdaq Composite fell 0.7% and 0.5%, respectively. The customer-engagement software company got a boost after Goldman Sachs analyst Callie Valenti initiated coverage with a Buy rating and a $34 price target, implying roughly 77% upside. The stock also benefited from a broader rebound in software names as fears eased that AI models from OpenAI and Anthropic could replace such platforms. Braze recently reported revenue of $211 million, up 30% year over year, and raised its full-year guidance, though it posted a net loss of nearly $27 million.
Rapid7, Braze, and Teradata Stocks Fall Amid AI-Driven Software Selloff
Rapid7, Braze, and Teradata shares declined in afternoon trading as a broader selloff hit the software sector, driven by fears that AI agents will erode traditional subscription models. Rapid7 fell 6.3%, Braze dropped 5%, and Teradata lost 5%, following declines in megacaps Alphabet and Microsoft. The market's concern was reinforced by Accenture's near-20% single-day drop the previous week after it cut its growth outlook, explicitly citing AI compressing demand for traditional IT services. Rapid7 is now down 55.6% year-to-date, trading at $6.34 per share, 75.2% below its 52-week high of $25.59 from July 2025.
Artificial Intelligence › AI Applications & Copilots ▼Competition
BRZE · Demand · Negative Braze shares fell 5% amid broader software selloff driven by fears that AI agents will erode traditional subscription models.
RPD · Demand · Negative Rapid7 shares fell 6.3% amid broader software selloff driven by fears that AI agents will erode traditional subscription models.
TDC · Demand · Negative Teradata shares fell 5% amid broader software selloff driven by fears that AI agents will erode traditional subscription models.
ACN · Demand · Negative Accenture's growth outlook cut and near-20% drop cited as reinforcing AI-driven demand compression for traditional IT services.
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