Braze Stock Surges 21% on Strong Earnings and AI Outlook
Customer engagement platform beats Q2 estimates and raises full-year guidance, citing momentum in AI-powered solutions.
Shares of customer engagement platform Braze (BRZE) soared more than 21% in premarket trading Friday after the company posted impressive second-quarter earnings and significantly boosted its financial outlook for the fiscal year 2026.
The company announced , reporting a non-GAAP net income of $0.15 per diluted share, shattering analyst expectations of just $0.03 per share. Revenue for the quarter reached $180.1 million, a robust 23.8% increase from the prior year, also surpassing consensus estimates.
Building on this momentum, raised its full-year guidance, signaling strong confidence in its growth trajectory. The company now projects revenue between $717.0 million and $720.0 million for fiscal 2026, up from previous forecasts. More notably, it anticipates non-GAAP net income to be in the range of $0.41 to $0.42 per diluted share, a substantial increase from its prior guidance of $0.15 to $0.18.
In a statement, co-founder and CEO Bill Magnuson highlighted the company's strategic focus, commenting, "Looking ahead, Braze is focused on AI solutions that will empower brands to transform the customer engagement experience for marketers and end users alike, driving high ROI for our customers and Braze." This emphasis on artificial intelligence is seen as a key catalyst for the company's next wave of growth, resonating positively with investors.
The strong report and optimistic forecast prompted a bullish response from Wall Street. Following the results, Piper Sandler analyst Brent Bracelin maintained an Overweight rating on Braze and from $38, reflecting renewed confidence in the stock's potential.