Braze's 3Q Guidance, AI Fears Seen Overshadowing 2Q Results -- Market Talk

1320 ET - Braze reported good 2Q numbers, but the company's 3Q guidance and decelerating backlog growth disappointed, Oppenheimer analysts write in a note. "Additionally, outsized growth in services revenue in FY27, combined with fears that AI spending will crowd out 2H software spending, raise concerns on subscription growth durability," the analysts add. Still, the market's negative reaction may overlook some important results, including improving margins and measures of profitability and sales productivity. "In our view, these developments suggest Braze's growth can reaccelerate post its customer conference in F3Q, and the AI ramp is not structurally margin-dilutive," the analysts write, maintaining their outperform rating. Shares tumble 19%. (elias.schisgall@wsj.com)

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September 09, 2026 13:20 ET (17:20 GMT)