Braze Raises Guidance

Braze raised its fiscal‑year guidance to revenue of $910–913 million, a 23 % increase at the midpoint, and EPS of $0.64–0.65. Q3 revenue guidance of $229–230 million exceeded consensus estimates of $227.8 million, but EPS guidance of $0.13–0.14 fell short of the $0.16 consensus, prompting a 10 % after‑hours drop. Shares fell 12–20 % following the Q2 announcement, reflecting investor caution over the near‑term outlook and valuation concerns, including a forward P/E of roughly 50× and short interest of 13.7 %. CEO William Magnuson attributed bookings strength to competitive takeaways from legacy marketing clouds and a vendor consolidation motion, and highlighted ongoing AI expansion as a key differentiator.