Braze Earns Bullish JPMorgan Nod On Retail Focus, Agentic AI Edge

On Friday, JPMorgan analyst Pinjalim Bora maintained an Overweight rating on Braze, Inc (NASDAQ:BRZE) with a price target of $47.

On Thursday, Braze reported fourth-quarter revenue of $160.4 million, beating the $155.72 million consensus estimate. The quarterly earnings were 12 cents per share, beating the analyst consensus estimate of five cents.

Braze expects fiscal 2026 revenue of $686 million-$691 million, versus the $688.07 million estimate and adjusted earnings of 31 cents to 35 cents per share, versus the 21 cent estimate.

Also Read: Braze Is Positioned To Capture Share In A Growing Market, Says Bullish Analyst

Braze delivered a good end to the year, with total revenue landing 3% above consensus, marking the highest dollar beat in the last four years, while adjusted operating margins landed over 300 bps ahead at +5%.

The cRPO grew 23%, marking only a slight deceleration. As total RPO-based bookings growth improved, cRPO-based bookings growth was steady at 22%.

New logo additions also improved, growing meaningfully for the first time in over two years.

On macro, Braze noted that it has not seen any meaningful changes in the demand trends, as well as any change in the behavior of the pipeline or close rates so far in first-quarter.

Braze also referred to its plan to lean in on some of its largest verticals, starting with retail and consumer goods, with focused R&D to further strengthen its leadership in key verticals.

Additionally, the company saw continued traction of its flexible credit system and expects to expand the scope of it this year.

While DBNRR downticked 2 pts sequentially to 111%, Braze highlighted that the difference in DBNRR between pre-ZIRP cohorts and post-ZIRP cohorts continues to trend in a positive direction, and reiterated expectations that revenue will likely inflect prior to reported DBNRR. Finally, leaning in on Agentic AI-based A/B testing, Braze announced its agreement to acquire OfferFit.

Net-net, Bora is encouraged by the results and remains positive on Braze’s long-term prospects. Braze continues to out-innovate its competitors by redefining the marketing tech stack and solidify its position as a critical first-party data set for companies.

Bora projected first-quarter revenue of $159 million and adjusted EPS of $0.05.

Price Action: BRZE stock is up 5.34% at $38.63 at last check Friday.

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