Backblaze Beats Q3 Guidance with $47M Revenue and Raises Full-Year Outlook on B2 Cloud Growth

The Quick Take

• Backblaze posted $47 million in total Q3 2026 revenue, beating its own guidance range, with the B2 Cloud Storage product continuing to drive growth as enterprises migrate workloads off expensive hyperscaler competitors
• The company raised its full-year revenue outlook following the Q3 beat, signaling management confidence that the B2 storage pricing advantage over AWS S3 and Google Cloud is translating into sustained customer acquisition
• With cloud storage spending under cost scrutiny across enterprises, Backblaze's value-priced positioning at roughly one-quarter the cost of major hyperscalers provides a durable competitive angle in the current environment

Backblaze delivered a Q3 revenue beat with $47 million in total revenues, exceeding its own guidance and demonstrating that the B2 Cloud Storage product is gaining sustained traction in a competitive market. The company raised its full-year outlook following the strong quarter, which is a meaningful signal for a small-cap cloud infrastructure provider where investor confidence hinges on consistent execution against targets. The beat came despite a broader environment where enterprise technology spending remains selective.

The Backblaze thesis centers on price disruption in the cloud storage market. B2 Cloud Storage is priced at approximately $6 per terabyte per month, compared to $23 per terabyte for Amazon S3 at scale—roughly one-quarter the cost. As enterprise and media workloads accumulate more data than ever, storage costs have become a meaningful line item that CFOs are scrutinizing. Backblaze's ability to provide S3-compatible storage at dramatically lower cost is resonating with cost-conscious buyers.

Despite the strong execution, Backblaze remains a small-cap company competing in a market dominated by trillion-dollar cloud providers. Risks include the ability of hyperscalers to reprice storage to defend market share, and the operational complexity of competing on reliability and performance against companies that have vastly more engineering resources. The raised guidance, however, suggests the company's specific customer segment—media companies, cloud backup, and cost-sensitive enterprises—is growing faster than consensus expected.

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