By Mackenzie Tatananni

Braze stock surged in premarket trading Friday after the customer engagement platform posted a solid second quarter and boosted its financial guidance.

Adjusted earnings of 15 cents a share came in above analysts' calls for three cents a share, according to FactSet. Revenue surged 28% from the prior year to $180.1 million, topping the $171.6 million Wall Street had forecast.

The software maker also more than doubled its forecast for its full-year profit. Braze sees adjusted earnings in the range of 41 cents to 42 cents a share, compared with its previous outlook of 15 cents to 18 cents and above the 17 cents analysts were looking for. The company expects revenue between $717 million and $720 million, up from a prior range of $702 million to $706 million. Wall Street had anticipated $704.5 million.

Mizuho analysts noted Friday that Braze delivered a "strong beat and raise" in the latest quarter. "Operating margin of 3.4% exceeded consensus of 0.7% and should alleviate investor concerns on margin expansion," the team said. Mizuho reiterated an Outperform rating on Braze shares and raised its price target slightly to $45 from $40.

The stock soared 19% to $32.87 on Friday. Futures tracking the benchmark S&P 500 and tech-heavy Nasdaq Composite were up 0.2% and 0.5%, respectively.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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September 05, 2025 07:52 ET (11:52 GMT)

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