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 Trading Down 5.2%

NASDAQ:BRZE traded down $1.65 on Tuesday, hitting $30.31. The company had a trading volume of 6,349,289 shares, compared to its average volume of 2,942,216. The stock has a market capitalization of $3.41 billion, a price-to-earnings ratio of -27.06 and a beta of 0.88. Braze has a 52 week low of $15.26 and a 52 week high of $37.33. The firm has a 50 day moving average of $27.40 and a two-hundred day moving average of $23.45.

Braze (NASDAQ:BRZE) last issued its quarterly earnings data on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.03. The company had revenue of $227.23 million for the quarter, compared to analysts’ expectations of $220.27 million. Braze had a negative net margin of 15.51% and a negative return on equity of 17.52%. 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, equities analysts forecast that Braze will post -0.78 EPS for the current year.

Wall Street Analysts Forecast Growth

BRZE has been the topic of several recent analyst reports. Piper Sandler reissued an “overweight” rating and issued a $27.00 price target on shares of Braze in a research note on Thursday, May 28th. Mizuho dropped their target price on shares of Braze from $40.00 to $32.00 and set an “outperform” rating on the stock in a research report on Thursday, May 28th. UBS Group restated an “outperform” rating on shares of Braze in a report on Thursday, May 28th. Canaccord Genuity Group dropped their price objective on shares of Braze from $40.00 to $35.00 and set a “buy” rating on the stock in a report on Thursday, May 28th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Braze from $33.00 to $35.00 and gave the stock an “overweight” rating in a research report on Monday, July 6th. One 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, the company has an average rating of “Moderate Buy” and an average price target of $36.59.

Insiders Place Their Bets

In related news, CRO Edward M. Mcdonnell sold 29,732 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $31.38, for a total transaction of $932,990.16. Following the completion of the transaction, the executive owned 409,630 shares in the company, valued at approximately $12,854,189.40. This represents a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $32.47, for a total transaction of $1,363,740.00. Following the sale, the chief technology officer owned 1,143,219 shares of the company’s stock, valued at approximately $37,120,320.93. The trade was a 3.54% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 203,568 shares of company stock valued at $6,096,461. Corporate insiders own 12.50% of the company’s stock.

Trending Headlines about Braze

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported adjusted EPS of $0.19, above the $0.16 analyst consensus, while revenue of $227.23 million exceeded expectations of $220.27 million. Revenue grew 26% year over year, and management highlighted improving operating leverage and record second-quarter free cash flow. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: Management issued fiscal third-quarter 2027 EPS guidance of $0.13-$0.14, well above the $0.09 consensus estimate, and revenue guidance of $229 million-$230 million versus expectations of $227.7 million.
• Positive Sentiment: Full-year fiscal 2027 guidance was also above analyst forecasts: EPS of $0.64-$0.65 versus $0.35 expected, and revenue of $910 million-$913 million versus $898.4 million expected. The outlook suggests continued growth and stronger-than-anticipated operating performance.
• Neutral Sentiment: Analysts maintained a consensus “Moderate Buy” recommendation ahead of the earnings release. Braze Receives Consensus Recommendation of Moderate Buy
• Negative Sentiment: Despite the earnings and guidance beats, Braze remains unprofitable, reporting a negative net margin of 15.51% and negative return on equity of 17.52%. The stock’s decline on heavy trading volume indicates investors may be taking profits or focusing on valuation and the path to sustained profitability.

Institutional Trading of Braze

Institutional investors have recently modified their holdings of the business. Invesco Ltd. grew its position in shares of Braze by 9.5% in the fourth quarter. Invesco Ltd. now owns 97,486 shares of the company’s stock valued at $3,343,000 after purchasing an additional 8,495 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in Braze by 7.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 22,878 shares of the company’s stock worth $784,000 after purchasing an additional 1,582 shares in the last quarter. Papamarkou Wellner Asset Management inc. purchased a new stake in Braze during the 4th quarter worth about $331,000. XTX Topco Ltd boosted its stake in Braze by 212.3% in the 4th quarter. XTX Topco Ltd now owns 22,517 shares of the company’s stock worth $772,000 after purchasing an additional 15,306 shares during the period. Finally, Twinbeech Capital LP boosted its stake in Braze by 548.7% in the 4th quarter. Twinbeech Capital LP now owns 72,841 shares of the company’s stock worth $2,498,000 after purchasing an additional 61,613 shares during the period. 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.