Braze Inc (BRZE) Has Trembled 37% During the Year, Here’s What You Need to Know Before Investing

Braze, Inc. (NASDAQ:BRZE) is one of the 11 Best Tech Stocks to Buy On the Dip. The company continues to face challenges from an uneven and noisy macroeconomic environment, noted the management. It has been facing elevated churn in the enterprise segment and prolonged deal cycles due to switching costs. Moreover, the weakness in the South Asian market has also resulted in falling investor sentiment. The stock has fallen more than 37% on a year-to-date basis due to these challenges.

However, despite the market condition, Braze, Inc. (NASDAQ:BRZE) continued its momentum from FQ4 2025 and surpassed expectations with its FQ1 2026 results. It grew its revenue by 19.64% year-over-year to $162.06 million, surpassing estimates by $3.46 million. The EPS of $0.07 also exceeded expectations by $0.02. Notably, the company grew its GAAP-operating margins by more than 900 basis points and also marked the fourth consecutive quarter of profitability, with $7 million as net income.

A web developer hunched over their laptop coding a customer engagement platform.

The growth was driven by a growing customer base of 2,342 customers, which increased by 240 compared to the previous year, with a notable rise in large customers. In addition, Braze, Inc. (NASDAQ:BRZE) has been enhancing its AI capabilities, on March 27, it announced its agreement to acquire OfferFit, an AI decisioning company, for $325 million. The completion of this acquisition was announced in the FQ1 2026 earnings release.

Management also highlighted notable business wins during the quarter including Beyond, Inc., Chamberlain Group, Evite, Freshket, Fubo, LUSH Cosmetics, Njuškalo, and ThredUp. Braze, Inc. (NASDAQ:BRZE) anticipates FQ2 2026 revenue to be between $171.0 million and $172.0 million, reflecting confidence in top-line growth.

While we acknowledge the potential of BRZE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.