Braze Stock Soars 16.92% on AI-Driven Earnings Surge

On September 5, 2025, Braze's stock surged by 16.92% in pre-market trading, driven by strong earnings and AI-driven growth.

Braze reported impressive financial results for the quarter ended July 31, 2025, with adjusted earnings of $0.15 per diluted share, significantly surpassing analyst expectations of $0.03. The company's revenue grew by nearly 24%, highlighting its robust performance and strategic focus on AI integration.

Braze's AI-driven strategy, including the $325 million OfferFit acquisition, has been pivotal in driving its growth. The company reported a 25.8% year-over-year revenue increase in FY2025, with 62% of its annual recurring revenue (ARR) coming from large clients. This strategy has not only boosted revenue but also enhanced customer retention and product leadership.

Despite a net loss of $27.8 million and an adjusted EPS of negative $0.15, Braze's fresh AI-powered tools and a larger, higher-spending customer base have significantly boosted its revenue. The company's non-GAAP operating income also improved to $6 million from $4.2 million the previous year, indicating progress in operational efficiency.

Braze's strong performance has garnered optimism from analysts and investors, with all 19 analysts tracking the company rating it a 'buy.' The company's Q3 revenue projections are as high as $184.5 million, with expectations for ongoing adjusted profitability. However, with shares trading at 99 times forecast earnings, the company faces high expectations and little room for error.