Braze (BRZE) reported "very solid" fiscal Q2 results and is entering H2 of fiscal year 2026 with solid strength despite a tough market environment, Oppenheimer said in a note Friday.

Analysts, including Brian Schwartz, said the company's quarterly results exceeded expectations, showing broad-based strength across key metrics, including current remaining performance obligations, new logos, geographies, and net revenue retention, or NRR.

While gross margin did fall year-over-year and NRR trends have yet to stabilize fully, signs of steady improvement give reason to believe expansion is on the horizon, which could lead to higher valuation multiples, they added.

"Braze's business performed well this quarter and is showing good strength entering the

H2 FY26, despite a challenging operating environment. In our view, BRZE multiples

appear reasonable for a durable mid-to-high teens subscription grower with improving

execution," the analysts said.

The analysts expect Braze to report total revenue of $976 million in fiscal year 2028, representing a 16% increase from the previous year, and a pro forma earnings per share of $0.88, up 49% year-over-year.

Oppenheimer reiterated its outperform and $38 price target on Braze.

The company's shares were up over 12% in recent trading.

Price: 31.16, Change: +3.50, Percent Change: +12.65