Braze rose about 8 percent today, its second straight day of gains, and is now trading at its highest level in months. We think this is mostly a continuation of a steady climb over the last few weeks, as there was no specific news today to explain a move this large.
Our view
The company is growing its sales quickly while also bringing in more cash than it spends. If you have been thinking about buying it, the current price is a reasonable one to pay for a business that is successfully taking market share. Owners should sit tight.
The company released its 2026 report on environmental, social, and governance (ESG) efforts, which tracks how the business manages its impact on the world and its internal culture. These reports are routine for public companies and help them meet the requirements of large global customers who vet their software providers for sustainability and ethical standards. While important for corporate discipline and hiring, the report does not change the financial outlook for the business.
Analysts issued a flurry of positive ratings and updates following the company's first-quarter earnings report in late May. Nearly all 25 analysts rate the stock a buy, and the average price target suggests a 14% gain from here.
Average target$32.80+14%vs $28.75 today
TodayAvg price
Low $30High $35
Strong Buy25 analysts
0Bearish
1Neutral
24Bullish
FirmRatingPrice TargetDate
Goldman Sachs
Buy
$34
6/24/2026
D.A. Davidson
—
$33
5/28/2026
Stifel Nicolaus
Buy
$30
5/28/2026
Canaccord Genuity
Buy
$40→$35
5/28/2026
Mizuho Securities
Outperform
$32
5/28/2026
Stifel Nicolaus
Buy
$45→$40
2/9/2026
Piper Sandler
Overweight
$50→$30
2/2/2026
Goldman Sachs
Buy
$55→$45
1/28/2026
BTIG
Buy
$45
12/16/2025
D.A. Davidson
—
$40→$42
12/10/2025
Mizuho Securities
Outperform
$45→$50
12/10/2025
Oppenheimer
Outperform
$40
12/10/2025
Braze earnings
Management has a mixed record lately, with three straight quarters of results that didn't quite live up to what analysts were expecting.
Earnings history
EstimateBeatMiss
Braze past earnings results
Expected
Actual
Surprise
EPS
$0.10
$0.10
-3.9%
Revenue
$205M
$211M
+2.8%
Key highlights
Revenue growth accelerating: Total revenue grew 30.2% to $211.0 million, marking the fourth straight quarter where the underlying growth rate improved. This shows that demand for customer engagement software is picking up as companies look to automate their marketing with new AI tools.
Large customer momentum: The number of customers spending more than $500,000 annually grew 33% to reach 349. These high-value clients now have a slightly higher retention rate of 111% compared to the overall company average of 110%, suggesting the platform is becoming more essential to large enterprises.
Improving profit margins: The company reported non-GAAP operating income, which is a measure of profit that excludes stock-based pay and one-time costs, of $10.5 million. This is nearly four times the $2.8 million earned a year ago, as the business becomes more efficient while it grows.
Cash flow remains healthy: Free cash flow, the cash left over after paying for all operations and equipment, rose to $26.8 million. This represents a 12.7% margin and provides a buffer for the business to continue investing in its new AI Agent Console and other product launches.
Higher full year outlook: Management raised its full year revenue guidance to a range between $895.0 million and $899.0 million. They also expect to earn between $70.0 million and $74.0 million in non-GAAP operating income for the year, signaling confidence that the current sales momentum will last.
Our take: This was a very strong start to the year, defined by four straight quarters of accelerating growth and a significant jump in profitability. The fact that large customers are growing at 33% and sticking around at higher rates than average proves the product is winning where it matters. It reinforces our confidence in the long-term case.
