Why Did Braze Stock Jump

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Braze (BRZE) stock rose 51.7% on Tuesday, October 20, 2026, while the S&P 500 gained 0.3%. The gain occurred the same day news reports said Salesforce had agreed to buy the customer-engagement software company for cash. Braze shareholders now know what they would be paid, allowing that price to be measured against the business Salesforce is buying. So how much is Salesforce paying, set against what Braze sells for today?

How Much Is Salesforce Paying For Braze?

News reports on October 20 said Salesforce will pay $47.50 in cash for each Braze share, a 58% premium to the previous close. The same reports valued the deal at $5.66 billion.

For that price, Salesforce would get a company with $834 million of revenue over the twelve months to July 31, 2026, up 27.4% from a year earlier. Over the same four quarters, Salesforce's own revenue grew 11.2%, meaning the buyer is paying for a business growing more than twice as fast as its own. Management said on the September 8, 2026 call that Braze also counted 361 large customers, with each spending at least $500,000 a year.

How Has The Deal Changed What Braze Shares Cost?

Braze shares now cost far more against the company's sales than they did three weeks earlier, and not solely because of the offer. Before the deal news, the stock had already risen about 18% between September 21 and the October 19 close. At the October 20 close, Braze carried a market value of $5.07 billion, or 6.1 times its revenue over the last twelve months. That compares with 3.3 times at the end of September, while the S&P 500 as a whole trades at 3.1 times sales.

The shares closed at $45.57, about 4% below the offer price. That gap suggests the market expects the deal to close but is pricing in some risk or delay.

Braze Still Grows Fast And Still Reports A Loss

Salesforce is buying the business Braze described when it last reported on that September 8 call. Over the twelve months to July 31, 2026, Braze still reported an operating loss equal to 13.4% of revenue, though that loss was narrower than the 20.3% of a year earlier. The company also produced $80.2 million of free cash flow over those twelve months.

During that call, management guided fiscal Q3 2027 revenue to between $229 million and $230 million, up from the $227 million Braze reported for fiscal Q2 2027. They also raised the full-year guide, projecting revenue of $910 million to $913 million for fiscal 2027. The offer changes none of those figures.

Does This Mean You Should Act On BRZE?

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