Braze (NASDAQ:BRZE) Releases FY 2027 Earnings Guidance

Key Points

• Braze raised its FY 2027 outlook, guiding for EPS of $0.610-$0.650 versus the $0.630 consensus and revenue of $895 million-$899 million versus the $887.2 million estimate.
• Recent quarterly results were strong, with Q1 revenue of $211.0 million beating expectations and rising 30.2% year over year, while EPS matched analyst estimates at $0.10.
• Wall Street remains broadly bullish on Braze, with multiple firms reiterating buy/overweight ratings and an average target price of $36.05, well above the stock’s recent price.

Braze (NASDAQ:BRZE - Get Free Report) issued an update on its FY 2027 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 0.610-0.650 for the period, compared to the consensus estimate of 0.630. The company issued revenue guidance of $895.0 million-$899.0 million, compared to the consensus revenue estimate of $887.2 million.

Braze Price Performance

Shares of NASDAQ:BRZE opened at $23.36 on Friday. The firm has a market capitalization of $2.65 billion, a PE ratio of -20.86 and a beta of 0.78. The firm's 50-day moving average is $22.11 and its two-hundred day moving average is $24.50. Braze has a 1 year low of $15.26 and a 1 year high of $37.67.

Braze (NASDAQ:BRZE - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $0.10 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.10. The company had revenue of $211.00 million for the quarter, compared to analyst estimates of $205.19 million. Braze had a negative net margin of 15.51% and a negative return on equity of 17.33%. The business's revenue for the quarter was up 30.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.07 earnings per share. Braze has set its Q2 2027 guidance at 0.150-0.160 EPS. Analysts expect that Braze will post -0.87 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on BRZE. DA Davidson reaffirmed a "buy" rating and issued a $33.00 target price on shares of Braze in a report on Thursday. Piper Sandler reaffirmed an "overweight" rating and issued a $27.00 target price on shares of Braze in a report on Thursday. Citigroup reaffirmed a "market outperform" rating on shares of Braze in a report on Thursday. Barclays raised their target price on shares of Braze from $29.00 to $31.00 and gave the company an "overweight" rating in a report on Wednesday, March 25th. Finally, Mizuho decreased their price target on Braze from $40.00 to $32.00 and set an "outperform" rating for the company in a report on Thursday. Twenty-two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Braze has an average rating of "Moderate Buy" and an average target price of $36.05.

Insider Buying and Selling

In other Braze news, General Counsel Susan Wiseman sold 35,000 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $20.29, for a total value of $710,150.00. Following the transaction, the general counsel directly owned 209,424 shares in the company, valued at $4,249,212.96. This represents a 14.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 12.50% of the stock is owned by corporate insiders.

Key Headlines Impacting Braze

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported fiscal Q1 results that met EPS expectations and beat revenue estimates, with revenue up 30.2% year over year to $211.0 million, signaling continued strong demand for its customer engagement platform.
• Positive Sentiment: The company raised fiscal 2027 guidance, projecting EPS of $0.610-$0.650 and revenue of $895 million-$899 million, both above consensus estimates, which supports the long-term growth outlook.
• Positive Sentiment: Several Wall Street firms reiterated bullish views after the earnings release, including Citizens JMP (“Market Outperform” with a $35 target), Cantor Fitzgerald (“Overweight” with a $38 target), DA Davidson (“Buy” with a $33 target), and Piper Sandler (“Overweight” with a $27 target).
• Neutral Sentiment: Investor attention also focused on Braze’s commentary around AI adoption and organic revenue acceleration, which management highlighted as a key growth driver. Braze Delivers Fourth Straight Quarter of Organic Revenue Growth Acceleration
• Negative Sentiment: The stock has been weighed down by mixed profitability signals, including margin results that some investors viewed as less impressive than revenue growth and guidance, suggesting the company is still prioritizing expansion over near-term profits. Why Braze (BRZE) shares are sliding today
• Negative Sentiment: TipRanks flagged foreign exchange exposure as a new risk, noting that Braze’s global expansion could increase earnings volatility and pressure margins if the U.S. dollar stays strong. Braze’s Growing Currency Risk: How a Strong Dollar and Global Expansion Could Pressure Margins and Add Earnings Volatility

Hedge Funds Weigh In On Braze

Hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd increased its stake in Braze by 3,650.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company's stock valued at $28,000 after purchasing an additional 803 shares during the last quarter. Osaic Holdings Inc. boosted its holdings in shares of Braze by 821.1% in the second quarter. Osaic Holdings Inc. now owns 1,575 shares of the company's stock valued at $44,000 after acquiring an additional 1,404 shares during the period. Quarry LP acquired a new stake in shares of Braze in the third quarter valued at approximately $46,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Braze in the fourth quarter valued at approximately $52,000. Finally, Quantbot Technologies LP acquired a new stake in shares of Braze in the third quarter valued at approximately $163,000. 90.47% of the stock is currently owned by hedge funds and other institutional investors.

About Braze

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.

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