Box reported fourth‑quarter and full‑year 2026 results, posting revenue of $306 million for the quarter and $1.18 billion for the year, up 9% YoY for the quarter and 8% for the year.
Earnings per share exceeded expectations, with Non‑GAAP EPS of $0.49 versus consensus of $0.34, a beat of $0.15. GAAP EPS of $0.47 also surpassed the $0.33 estimate. The beat was driven by disciplined cost management and a favorable mix of high‑margin Enterprise Advanced contracts.
Operating margins expanded to 30.6% Non‑GAAP and 10.2% GAAP, outperforming prior guidance. The margin lift reflects higher pricing power in the Enterprise Advanced suite and scale benefits from the company’s AI platform, offsetting modest cost increases in support services.
"Fiscal 2026 was a defining year for Box, as we executed on the launch of Enterprise Advanced, delivering customers our most powerful capabilities around advanced AI and intelligent workflow automation, all anchored in a secure platform," said CEO Aaron Levie. CFO Dylan Smith added, "Our strong results in fiscal 2026 demonstrate the success of our Intelligent Content Management platform strategy as we drove a significant improvement in our net retention rate. Looking ahead, we will continue to execute on our robust product roadmap and invest in strategic go‑to‑market initiatives, leading to accelerated revenue growth in FY27 and beyond."
Guidance for the first quarter of fiscal 2027 projects revenue of approximately $304 million, a 10% YoY increase, and full‑year revenue of about $1.275 billion, up 8% from the prior year. The outlook signals confidence in continued demand for AI‑driven solutions and a stable growth trajectory.
The company also reported a 17% YoY rise in remaining performance obligations, indicating a robust future revenue pipeline, and completed share repurchases of 4.4 million shares for roughly $126 million in the quarter.
Market reaction was positive, with analysts noting the strong EPS beat and margin expansion as evidence of effective execution, while acknowledging foreign‑exchange fluctuations as a modest headwind.
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