Overview

* Braze fiscal Q2 revenue up 24% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q2 misses analyst estimates, per LSEG data

* Non-GAAP operating income rises to $6.0 mln from $4.2 mln last year

Outlook

* Braze sees Q3 revenue between $183.5 mln and $184.5 mln

* Company expects FY 2026 revenue of $717 mln to $720 mln

* Braze anticipates Q3 non-GAAP net income of $6.5 mln to $7.5 mln

* Company forecasts FY 2026 non-GAAP EPS of $0.41 to $0.42

Result Drivers

* REVENUE GROWTH - Driven by new customers, upsells, and renewals, contributing to a 24% year-over-year increase

* AI DEMAND - Strong demand for AI-powered customer engagement platform highlighted as a key performance driver

* CUSTOMER EXPANSION - Increase in total customers and high-value contracts, with 282 customers having ARR of $500,000 or more

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $180.11 $170.10

Revenue mln mln (19

Analysts

)

Q2 Miss -$0.15 $0.03

Adjusted (19

EPS Analysts

)

Q2 EPS -$0.26

Q2 Net -$27.76

Income mln

Q2 Gross $121.89

Profit mln

Q2 -$38.75

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Braze Inc ( BRZE ) is $41.00, about 34.2% above its September 3 closing price of $26.99

* The stock recently traded at 99 times the next 12-month earnings vs. a P/E of 88 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)