Braze Shares Drop Over 5% After Earnings Despite Beating Estimates
On September 9, Braze (NASDAQ: BRZE) experienced a more than 5% drop in its stock price following the release of second-quarter fiscal 2027 earnings. The customer engagement software company reported revenue of $227 million and non-GAAP net income of over $21 million per share—both above analyst expectations. Despite these strong results, investors focused on guidance for the current quarter that fell short in adjusted EPS projections. Braze raised its full-year revenue forecast to between $910 million and $913 million but guided toward a lower end of profitability than expected. While analysts had predicted $228 million in Q3 revenue, Braze's guidance range was slightly higher at $229–$230 million. However, its adjusted EPS outlook for the quarter came below expectations. The stock decline reflects investor concerns over future performance and cautious sentiment toward software stocks that fail to exceed high estimates consistently.
Topics: guidance quarterly earnings revenue growth stock price drop