revenue
329 $million
Q3 2027
official guidance
BOX, INC.
Last · —$38.07+0.53 (+1.41%)live · yahoo · 28m ago
Market cap$5.40B—
P/E · TTM56.2fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $1.2B |
|---|---|
| Operating income | $116.3M |
| Net income | $100.5M |
| Free cash flow | $389.4M |
| Operating margin | 9.4% |
| Net margin | 8.1% |
| Return on equity | 68.7% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Execution is improving, but AI monetization and durable acceleration remain insufficiently quantified.
Hold: BOX delivered a strong quarter—revenue rose 9% to $321.1 million, billings grew 17%, NRR improved to 106%, and non-GAAP operating margin expanded to 29.4%.
Management raised FY27 revenue guidance to approximately $1.29 billion, but the outlook still implies only 10% reported growth, while Q3 billings guidance of 9% and continued cloud-capacity constraints temper the bullish AI and Enterprise Advanced narrative.
Themes
- Enterprise Advanced
- Ai Units
- Intelligent Content Management
- Agent Governance
- Legacy Ecm Migration
- Gross Margin
Near term
BoxWorks on November 5 could provide product, AI-unit monetization, and customer evidence capable of changing the growth narrative.
Q3 revenue guidance is approximately $329 million, with 28% non-GAAP operating margin and $0.39 adjusted EPS expected.
Track whether Q3 billings reaccelerate beyond the guided 9% rate and whether short-term RPO growth remains ahead of revenue.
Gross margin is guided to approximately 80.5% in Q3 and FY27, with Q4 around 80%, leaving sensitivity to public-cloud infrastructure availability.
Longer term
Enterprise Advanced adoption, wall-to-wall deployments, legacy ECM migrations, and cross-departmental seat expansion are the principal potential drivers of sustained NRR improvement.
Box’s model-neutral governance layer could benefit if enterprises use multiple AI models and agents while keeping unstructured data in a controlled system of record.
The competitive moat depends on whether Box’s security, permissions, auditability, and agent-governance capabilities remain differentiated versus hyperscalers, model vendors, and emerging AI workflow platforms.
FDE and systems-integrator investments may help convert AI pilots into production workflows, but they could also pressure margins before consumption revenue scales materially.
Red flags
Management did not quantify AI-unit revenue, consumption growth, refill rates, gross profit contribution, or the size of AI-driven net-new customer wins; it acknowledged monetization remains early and is largely coming from existing customers.
The CFO attributed gross-margin pressure to limited access to certain public-cloud infrastructure components, without quantifying the duration or potential financial impact of the constraint.
Analyst pushback highlighted the sharp Q2-to-Q3 billings deceleration; management cited lumpiness, FX, and prudent guidance rather than providing a more specific booking or renewal bridge.
The model-neutral strategy relies partly on falling model prices and continued access to competitive models, potentially limiting pricing power even if usage expands.
The company is increasing FDE and ecosystem investments while BoxWorks costs and a headquarters lease weigh on second-half expenses; the return on these investments remains unproven.
Forward outlook
revenue growth
11 pct
Q3 2027
official guidance
gross margin
80.5 pct
Q3 2027
official guidance
operating margin
28 pct
Q3 2027
official guidance
adjusted eps
0.39 $per share
Q3 2027
official guidance
revenue
1290 $million
FY 2027
official guidance
revenue growth
11 pct
FY 2027
official guidance
gross margin
80.5 pct
FY 2027
official guidance
operating margin
28 pct
FY 2027
official guidance
adjusted eps
1.54 $per share
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-09
- Steady Revenue Growth
- Enterprise Expansion
- Cloud Costs
- Stock Based Compensation
- Preferred Stock Dilution
- Convertible Debt
- Ai Competition
- Cybersecurity
Red flags
- Stock-based compensation was $233.7 million in FY26, equal to about 20% of revenue and 2.8 times reported operating income of $83.2 million.
- Series A preferred stock reduced FY26 earnings attributable to common stockholders by $28.3 million through dividends/accretion and undistributed earnings; 18.6 million preferred-stock shares were excluded as antidilutive from FY26 diluted EPS.
- Box has $460.0 million of 1.50% convertible notes due September 2029, with an approximately $43.46 conversion price, creating future repayment or dilution exposure.
- Operating income grew only 4% to $83.2 million despite 8% revenue growth, leaving reported operating margin at roughly 7.1%.
- Non-cancellable purchase obligations total $562.5 million, including $439.5 million due from FY29 through FY31, primarily for public-cloud hosting and IT software/support.
Earnings transcripts
- Motley Fool
Box (BOX) Q2 2027 Earnings Call Transcript
BOX, INC.
- Issuer webcast
Final Results Investor Presentation Webcast Monday, 11 May 2026 8:30am - 10:00am Register and watch here
BOXER RETAIL LIMITED
- Issuer webcast
Interim Financial Results Presentation for the 26 weeks ended 31 August 2025 Monday, 13 October 2025 8:30am - 10:00am Click here to register for online webcast
BOXER RETAIL LIMITED
Press & signals
- Satelight
Tech CEOs are apparently suffering from AI psychosis
Documents
FormReporting forFiledFlags