Braze Inc. Q2 2026 Results and Outlook
Braze Inc. (NASDAQ:BRZE) posted second‑quarter 2026 adjusted earnings per share (EPS) of $0.19, surpassing the analyst consensus of $0.15 by $0.04. Revenue for the quarter reached $227.2 million, beating the consensus estimate of $220.23 million and representing 26% year‑over‑year growth from $180.1 million in the comparable period of the prior year.
The company issued third‑quarter 2026 EPS guidance of $0.13‑$0.14, which fell short of the consensus forecast of $0.16; the midpoint of $0.135 reflects a 15.6% shortfall versus expectations. This guidance prompted a 10% decline in Braze’s share price in after‑hours trading on Tuesday.
For the third quarter, Braze projected revenue of $229‑$230 million, with a midpoint of $229.5 million, modestly above the consensus estimate of $227.8 million. Looking ahead to fiscal 2027, the company guided EPS of $0.64‑$0.65, slightly above the consensus of $0.63, and revenue of $910‑$913 million, ahead of the $898.7 million estimate.
CEO and co‑founder Bill Magnuson highlighted the strong performance, stating that the results underscore Braze’s essential role for brands globally, noting the 26% YoY revenue growth, improved operating leverage, and record second‑quarter free cash flow.
Financially, Braze generated record cash from operations of $24 million and free cash flow of $22 million, compared with $7 million and $3.5 million, respectively, in the prior year quarter. Adjusted operating income rose to $22 million, up from $6 million in the second quarter of fiscal 2026.
The customer base expanded to 2,789 clients as of July 31, 2026, up from 2,422 a year earlier. The number of customers with annual recurring revenue (ARR) of $500,000 or more increased to 361 from 282 YoY. Dollar‑based net retention for all customers reached 110% over the trailing twelve months, compared with 108% in the prior year period.