Braze Inc Surges After Strong Q3 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Should l Buy BRZE?
Source: TipRanks
Braze Inc's stock price increased by 14.91%, reaching a 20-day high following the announcement of its Q3 earnings report.
The company reported a 25.5% year-over-year revenue increase, driven by significant customer growth and improved operating margins. This strong performance has attracted investor interest and boosted confidence in the company's future prospects.
Analysts are optimistic about Braze's continued growth, particularly with its focus on AI-driven customer engagement solutions, which are expected to enhance its market position and drive further revenue increases.
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Analyst Views on BRZE
Wall Street analysts forecast BRZE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRZE is 45.00 USD with a low forecast of 38.00 USD and a high forecast of 53.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 17.730
Low
38.00
Averages
45.00
High
53.00
Current: 17.730
Low
38.00
Averages
45.00
High
53.00
About BRZE
Braze, Inc. provides a customer engagement platform that enables brands to be engaging. The Company’s platform allows any marketer to collect and take action on any amount of data from any source, so they can engage with customers in real time, across channels from one platform. From cross-channel messaging and journey orchestration to artificial intelligence (Al)-powered experimentation and optimization, its platform enables companies to build and maintain engaging relationships with their customers. The Company’s platform produces data that informs decisions and actions across customer engagement strategies. It supports interactions across both in-product and out-of-product messaging channels. Braze Cloud Data Ingestion allows its customers to set up a direct connection between their data warehouses or platforms and Braze to automatically sync relevant data. The Company’s portfolio also includes OfferFit, an AI decisioning company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Piper Sandler Lowers Braze, Inc. Price Target to $30
- Price Target Adjustment: Piper Sandler has lowered Braze, Inc. (NASDAQ:BRZE) price target from $50 to $30 while maintaining an Overweight rating, reflecting a cautious stance on valuation expansion in the software sector influenced by narratives of 'seat-compression and vibe coding'.
- Financial Performance: For Q3 fiscal 2026, Braze reported revenue of $191 million, representing a 25.5% year-over-year growth and a 6% sequential increase, indicating strong customer demand despite a constrained enterprise software spending environment.
- Customer Growth Highlight: The company added 106 net new customers in the quarter and 317 over the past year, marking its strongest customer growth quarter in three years, which underscores sustained demand for its customer engagement tools.
- Market Positioning: While near-term valuation sentiment towards software remains cautious, Braze's consistent revenue growth and improving customer acquisition trends suggest that the company is well-positioned within the broader data-driven marketing landscape.
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- Financial Performance: For Q3 fiscal 2026, Braze reported revenue of $191 million, representing a 25.5% year-over-year growth and a 6% sequential increase, indicating strong customer demand despite a constrained enterprise software spending environment.
- Customer Growth Highlight: The company added 106 net new customers in the quarter and 317 over the past year, marking its strongest customer growth quarter in three years, which underscores sustained demand for its customer engagement tools.
- Market Positioning: While near-term valuation sentiment towards software remains cautious, Braze's consistent revenue growth and improving customer acquisition trends suggest that the company is well-positioned within the broader data-driven marketing landscape.
See More
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- Overview of Oversold Stocks: The information technology sector's oversold stocks present investors with opportunities to buy into undervalued companies, particularly when the Relative Strength Index (RSI) falls below 30, indicating potential overselling.
- Braze Inc Performance: Braze Inc (NASDAQ:BRZE) has seen its stock price drop approximately 39% over the past month, currently holding an RSI of 28; analyst Hannah Rudoff maintains an Overweight rating but lowers the price target from $50 to $30, reflecting cautious market sentiment regarding its future performance.
- Price Fluctuation Details: Despite a 2.9% increase in Braze Inc's stock price to close at $19.47 on Wednesday, its 52-week low stands at $17.62, indicating market concerns about the company's outlook.
- Market Analysis Tools: Utilizing data from Benzinga Pro, the RSI serves as a momentum indicator that aids traders in understanding short-term stock performance, especially in the IT sector, where identifying oversold stocks may offer potential buying opportunities.
See More
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- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
See More
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- Rising Nuclear Demand: Cameco Corp. advanced 37%, supported by analyst upgrades to earnings forecasts and price targets, reflecting optimistic expectations for long-term nuclear demand amid rising uranium prices and renewed policy support.
- Defense Giant Breakthrough: Lockheed Martin Corp. jumped 30%, achieving its best monthly performance since its 1995 debut, as investors focused on upbeat 2026 financial guidance and a new missile contract with the U.S. Department of Defense despite narrowly missing quarterly earnings estimates.
- Software Sector Decline: The software sector faced historic declines in January, with five major companies logging their worst monthly performances, largely due to AI-driven demand reshaping and a reassessment of business models across the industry.
See More
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- Market Decline: The WisdomTree Cloud Computing Fund has dropped over 8% this year, with major software firms like Salesforce, ServiceNow, and Adobe seeing stock declines exceeding 14%, indicating heightened market concerns that could trigger a wave of acquisitions.
- AI Competitive Pressure: The launch of Anthropic's AI tool Cowork aimed at enterprise customers has shaken investor confidence in software vendors, raising fears that AI could replace critical functions traditionally handled by software, prompting mid-sized firms to seek financing options to navigate these challenges.
- Acquisition Opportunities: Thoma Bravo co-founder Orlando Bravo highlighted that now presents incredible buying opportunities, particularly for companies developing AI solutions that integrate with existing systems, reflecting strong market demand for AI integration.
- Strategic Adjustments: Analyst Rishi Jaluria noted that the recent pullback in software stocks may force certain companies to explore strategic alternatives, especially those lacking effective AI integration, suggesting that future deals will need compelling AI angles to attract investor interest.
See More
Software Stocks Decline, Investors Eye Acquisition Opportunities
- Market Downward Pressure: Cloud software stocks like Salesforce, ServiceNow, and Adobe have dropped over 14% at the start of 2025, while the WisdomTree Cloud Computing Fund has fallen more than 8% year-to-date, indicating increasing market concerns about the software sector.
- Increased Acquisition Opportunities: Orlando Bravo, co-founder of private equity firm Thoma Bravo, noted that there are “incredible buying opportunities” right now, which may lead mid-sized software companies to seek financing and potentially trigger a wave of acquisitions.
- Escalating AI Threats: The launch of AI agent tools has heightened investor anxiety about the software industry's future, with analysts highlighting significant risks for companies like Monday.com, Asana, and Sprout Social, which may be forced to explore strategic alternatives.
- Poor Market Reactions: Despite Salesforce CEO Marc Benioff claiming the latest quarter was the “best of their careers,” the market response has been tepid, with ServiceNow's shares dropping 17% over a week, reflecting investor skepticism towards companies lacking an AI strategy.
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