Braze Posts Strong Q2 Results, But Stock Falls Amid Outlook Concerns
Braze (NASDAQ:BRZE) reported strong second-quarter results on September 8, with revenue rising to $227.2 million and non-GAAP net income increasing by 26%. The company exceeded Wall Street expectations for both revenue and adjusted earnings per share. Despite the solid performance, Braze's stock fell nearly 20% in early trading as investors focused more on its guidance than past results. The firm raised its full-year revenue outlook to $910 million–$913 million but provided weaker-than-expected Q3 non-GAAP earnings per share of $0.13–$0.14, below the consensus estimate of $0.16. While this suggests continued growth for 2026, it failed to excite investors who were likely hoping for stronger near-term guidance. Braze's stock is also under pressure due to a high forward P/E ratio and increased short interest (13.72% of float). Hedge fund ownership has slightly declined in Q2.
Topics: Braze guidance Q2 earnings stock price drop