JPMorgan Trims Braze EPS Outlook As Investors React To Acquisition Growing Pains

JPMorgan analyst Pinjalim Bora lowered the price forecast for Braze, Inc. BRZE from $45 to $47, while retaining an Overweight rating.

On Thursday, the company posted quarterly earnings of seven cents per share, which beat the analyst consensus estimate of five cents per share and sales of $162.06 million, which beat the analyst consensus estimate of $158.66 million.

Braze lowered its FY2026 adjusted EPS guidance from 31 cents to 35 cents, but raised its FY2026 sales outlook from $686 million-$691 million to $702 million-$706 million.

The analyst notes that Braze began the year well, with all metrics exceeding guidance, though the company guidance added some noise as layered in a recent acquisition.

Bora writes that Braze noted global trade concerns haven’t materially impacted deal cycles, observing broad strength across industries and good momentum in the Americas and EMEA.

While full-year revenue guidance increased, full-year operating margins reset ~300bps lower post-acquisition, incorporating OfferFit’s full cost profile, adds the analyst.

Though investors might be cautious about this temporary deviation from margin expansion, the analyst views OfferFit as a strategic long-term move.

Overall, Bora remains encouraged by these results and Braze’s long-term prospects as it continues to out-innovate peers by redefining the marketing tech stack and solidifying its role as a critical first-party data provider.

The analyst slashed adjusted EPS estimates to 17 cents (from 36 cents) for FY26 and 40 cents (from 61 cents) for FY27.

BRZE Price Action: Braze shares are down 18.06% at $29.58 at publication on Friday.

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