Box Raises Full-Year Guidance as AI Adoption Drives Strong Q2 Results

Box bumps up its full-year guidance after posting solid earnings and revenue - SiliconANGLE

Box bumps up its full-year guidance after posting solid earnings and revenue Shares of the cloud storage pioneer Box Inc. were moving higher in extended trading today after it delivered another earnings and revenue beat and raised its full-year guidance, citing momentum with its artificial intelligence offerings. The company reported second-quarter earnings before certain costs such as stock compensation of 33 cents per share, edging past the analyst's target of 31 cents. Revenue for the period increased 9% from a year earlier to $294 million, also topping the Street's forecast. Analysts had been looking for sales of just $291 million. Box also reported $264.9 million in billings, representing growth of 3% from a year earlier. Billings are seen as a gauge of future revenue, as the number represents the total amount invoiced to customers during the quarter for products and services delivered, but not yet paid. The only real blot on Box's report was a slight decline in its profitability. It recorded net income of $13.4 million in the quarter, down from a profit of $20.5 million in the year-ago period. Nonetheless, Box co-founder and Chief Executive Aaron Levie (pictured) was quick to highlight the potential of the company's Intelligent Content Management platform, with its recent infusion of agentic artificial intelligence capabilities. "Enterprises can finally leverage AI agents to take full advantage of their unstructured data," Levie said. "In the second quarter, we continued to see strong momentum with Enterprise Advanced, which delivers intelligent workflow automation, advanced AI, powerful AI agents and secure content management in one plan." Box has emerged at the forefront of the enterprise AI push, putting the technology at the front and center of its content management tools. Its AI offerings are centered on the Box AI suite, which launched in 2023 and includes a host of AI agents that can automate repetitive tasks on behalf of its users. With its Box AI Studio, companies can even create their own AI agents. "In this AI-first era, we are doubling down on our Intelligent Content Management platform and will continue to execute on our innovative product roadmap as we shape the future of work," Levie added. Box said it's upping its full-year guidance, and now expects total revenue of between $1.17 billion and $1.18 billion, which would mean growth of 8% at the midpoint of that range. Previously, it was targeting growth of just 7%. As for earnings, it's now targeting a profit of between $1.26 and $1.28 per share, up from a prior range of $1.22 to $1.26. Wall Street is modeling full-year revenue of $1.17 billion and earnings of $1.26 per share. Box's guidance for the current quarter was slightly less encouraging, though. It said it's looking for earnings of between 31 cents and 32 cents per share on sales of $298 million to $299 million. Wall Street analysts have forecast earnings of 32 cents per share on revenue of $298 million. Shares of Box gained more than 4% in after-hours trading on the back of today's report, but despite that movement, the stock is still down 1% in the year to date.

Box Beats Q2 Earnings Estimates, Shares Climb On 'Strong' AI Momentum - Box (NYSE:BOX)

Box Inc BOX reported financial results for the second quarter after the market close on Tuesday. Here's a rundown of the intelligent content management platform company's report. Q2 Revenue: $294 million, versus estimates of $290.78 million Q2 Adjusted EPS: 33 cents, versus estimates of 31 cents BOX is holding steady in today's choppy market. See what is happening here. Total revenue was up 9% on a year-over-year basis. Billings were up 3% year-over-year to $264.9 million in the quarter. Box said it ended the period with remaining performance obligations of $1.5 billion, up 16% year-over-year. The company generated $46 million in operating cash flow and $35.7 million in free cash flow during the second quarter. Box ended the quarter with approximately $657.83 million in total cash and cash equivalents. "With Box's Intelligent Content Management platform, enterprises can finally leverage AI agents to take full advantage of their unstructured data," said Aaron Levie, co-founder and CEO of Box. "In the second quarter, we continued to see strong momentum with Enterprise Advanced, which delivers intelligent workflow automation, advanced AI, powerful AI agents and secure content management in one plan." Outlook: Box expects third-quarter revenue to be in the range of $298 million to $299 million versus estimates of $297.47 million. The company sees this quarter's adjusted earnings of 31 cents to 32 cents per share versus estimates of 32 cents per share. Box raised its fiscal year 2026 revenue guidance from a range of $1.165 billion to $1.17 billion to a new range of $1.17 billion to $1.175 billion versus estimates of $1.172 billion. The company also raised its full-year adjusted earnings guidance from a range of $1.22 to $1.26 per share to a new range of $1.26 to $1.28 per share versus estimates of $1.34 per share. "In this AI-first era, we are doubling down on our Intelligent Content Management platform and will continue to execute on our innovative product roadmap as we shape the future of work," Levie said. Box's management team will further discuss the quarter on an earnings call set for 5 p.m. ET. BOX Price Action: Box shares were up 3.43% in after-hours, trading at $32.23 at the time of publication on Tuesday, according to Benzinga Pro. Read Next: Russell 2000 Hits 9-Month Highs, Bitcoin Drops Below $110,000: What's Moving Markets Tuesday? Photo: Shutterstock. BOXBox Inc$32.142.29%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum45.56Growth72.11QualityN/AValue18.74Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Box Q2 Revenue Rises on AI Adoption | The Motley Fool

Box(BOX -0.46%) reported second quarter fiscal 2026 results on August 26, 2025, exceeding prior guidance with revenue of $294 million (up 9% year over year) (non-GAAP), operating margin of 28.6%, and earnings per share (EPS) of $0.33. Notably, remaining performance obligations (RPO) grew 16% year-over-year to $1.5 billion, supported by accelerating enterprise adoption of Box AI and Enterprise Advanced, as well as significant product expansion and an updated fiscal 2026 guidance. The analysis below details Box's AI-driven platform strategy, growing monetization from tiered offerings, and how Suite adoption and higher price per seat drove improvements in net retention rate and revenue, each with significant consequences for long-term investors. For reference, fiscal 2026 for Box ends January 31, 2026. Box's AI-centric roadmap, featuring interoperable integration with leading large language models and agentic automation for unstructured data, underpinned a year-over-year expansion in short-term RPO (up 12% year over year) (non-GAAP) and nearly doubled sequential Enterprise Advanced deal volume. Management highlighted broad-based adoption across regulated industries via high-value AI workflow solutions such as metadata extraction, automated compliance, and custom agent creation. "We have announced support for OpenAI's GPT-5, Anthropix's Claude 4.1, and xAI's Grok 4 in the BoxAI Studio. Often on the day of the launch of this new model. In addition to supporting these new models on our platform, we've integrated with the broader product and partner ecosystems, OpenAI has integrated Box directly into ChatGPT for content access, Box partnered with Anthropics Financial Analysis Solution, We served as a launch partner for Snowflake's OpenFlow capability. Collaborated with AWS Bedrock agent core runtime, and partnered with Salesforce as a part of their MCP partner network." -- Aaron Levie, CEO Box's fast-cycle AI integrations and cross-platform partnerships build a competitive advantage as enterprise customers seek secure, extensible content management in the fragmented generative AI ecosystem. Expanded customer migration to Enterprise Plus and Enterprise Advanced drove suite-based revenue contribution to 63% of total revenue (from 58% a year ago) (non-GAAP), and yielded seat-based pricing increases of 20%-40% on upgrades from Enterprise Plus to Enterprise Advanced, further elevating net retention rate (NRR) to 103% (non-GAAP). New customer wins and departmental expansion overcame persistent macro uncertainty as seat expansion rebounded. "So when you have a straight upgrade to Enterprise Advanced, you know, we tend to see relative to just using the core service non-suites, call that rough doubling, sometimes a little more, a little less based on relative to what they'd be paying versus that 20 to 40% uplift when going from Enterprise Plus to Enterprise Advanced. And we have been pretty pleased with the momentum there, especially given how early we are in the overall rollout of Enterprise Advanced." -- Dylan Smith, CFO Box's tiered monetization strategy rapidly improves per-customer economics and underpins management's confidence in sustained margin leverage and durable revenue growth. Box's direct embedding of AI agents in customer content workflows supports adoption in use cases like intelligent contract lifecycle management, clinical study automation, and enterprise-wide knowledge retrieval, addressing the enterprise market's challenge of managing unstructured data, which accounts for about 90% of corporate information. The MCP Server general availability enables external AI systems to securely access Box content, streamlining enterprise-wide AI orchestration. "so MCP server is basically this really compelling abstraction layer that makes it easy for the AI agents or AI systems on those external products to tap into the data that's within Box or the agents that are within Box. And so what we just launched it, GA'd in August. But the core idea is that you can be inside of Claude, and you could say, please summarize my meeting note from that one meeting or a contract that I was working on. And, again, instead of you having to upload your data to Claude, it will just tap into the BoxMC server, find the information you're looking for, and then right in line where you were doing your work, you can access your data." -- Aaron Levie, CEO This infrastructure position reinforces Box as the control plane for secure enterprise content in the AI era, facilitating future expansion into workflow and agent marketplaces. Management raised full-year fiscal 2026 revenue guidance (non-GAAP) by $5 million to $1.17 billion to $1.175 billion, representing approximately 8% year-over-year growth, or 7% in constant currency, and guided fiscal 2026 non-GAAP operating margin to 28%, with non-GAAP EPS of $1.26 to $1.28. Third quarter guidance calls for revenue of $298 million to $299 million (up approximately 8% year over year), third quarter billings growth of approximately 10%, gross margin of 81%, and a non-GAAP operating margin of 28%, with continued net retention rate improvement, expected to exit fiscal 2026 at 103% (non-GAAP). Specific margin headwinds in the third quarter include BoxWorks-related expenses (about $3 million) and the absence of prior-year one-time hardware revenues. All margin references are on a non-GAAP basis.

Box Revenue Jumps 9% in Fiscal Q2 | The Motley Fool

Box (BOX -0.46%), the enterprise content management platform, reported results for the second quarter of fiscal 2026 on August 26, 2025. The company reported revenue growth. Revenue was $294.0 million, compared to expectations of $290-$291 million, while robust performance in long-term contracts lifted future revenue commitments. However, net earnings per share (non-GAAP) dropped to $0.33, below the prior year, largely due to tax-related accounting effects. Billings saw a marked slowdown, raising caution for upcoming revenue momentum. Overall, the period showed tangible gains in sales and product innovation, but future billing and margin trends will be important to monitor. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report. Box specializes in cloud‑based content management and file sharing for businesses. Its platform enables enterprises to securely store, manage, and collaborate on documents and digital content from anywhere. The company's main focus is providing secure, compliant, and easily integrated solutions that work well with other business software. It targets large organizations, especially those in regulated industries that require strict security and compliance standards. Box's business relies on growing recurring revenue through long‑term subscription contracts and expanding the use of its artificial intelligence (AI) powered tools and advanced workflow automation. Box reached $294.0 million for the period, up from $270.0 million a year earlier. This beat its previous guidance range and marked a step up in sales growth versus the first quarter, when growth was slower. Operating margin on a non-GAAP (generally accepted accounting principles) basis was 28.6%, compared to 28.4% in Q2 fiscal year 2025. While reported revenue and margins were strong, non‑GAAP earnings per share fell to $0.33 from $0.44. Management explained this was primarily due to changes in deferred tax accounting, a non-cash effect that reduced non-GAAP earnings by $0.14 per share. Net cash provided by operating activities was $46.0 million. Non-GAAP free cash flow was $35.7 million, up 9% year-over-year. One of the most watched metrics in software businesses is billings, which measures the total value of invoices sent to customers during the quarter. Box's billings increased by only 3%, a significant deceleration in billings growth from the prior quarter (Q1 FY2026), when early renewals had boosted growth. Company filings and management indicated that part of the slowdown was due to those renewals pulling business into the previous period. Forward-looking indicators, however, strengthened. Remaining Performance Obligations (RPO), which represents contracted future revenue not yet recognized, jumped 16% to $1.5 billion. Short‑term RPO rose 12% and long‑term RPO climbed 21%. These figures suggest the company is signing larger or longer-term contracts, particularly through its "Enterprise Advanced" plan, which bundles advanced AI features, workflow automation, and security tools. During the quarter, Box continued launching new product features and integrations. Product highlights included enhancements to its AI-powered platform: general availability of its Enhanced Extract Agent (used for data extraction and workflow automation), as well as early access to its Model Context Protocol (MCP) Server, which manages the use of external AI models. Box AI Studio, one of its core AI offerings, gained support for recent generative AI models from OpenAI, Anthropic, and xAI. The company deepened platform integrations with major software partners, including a new connector for OpenAI's ChatGPT (AI chat assistant), and tighter links with Snowflake (cloud data analytics), Salesforce (business software), and others. These integrations allow companies to use Box as the central hub for content while leveraging powerful AI tools for search, compliance, or automation use cases. Notable customer wins included large organizations such as Marriott International (hospitality), the Japan Ministry of Defense (public sector), and well‑known firms in legal, technology, and retail. Box's ongoing traction in regulated and government sectors is tied to its focus on compliance, security, and "platform neutrality" in supporting a wide array of software partners and AI systems. Box received FedRAMP High Authorization, allowing U.S. government agencies and authorized government contractors to leverage its ICM platform, including Box AI and Box Hubs, for highly sensitive data, but Box showcased growing relevance with U.S. federal government users, including a collaboration with the General Services Administration. On the cost side, Box saw expenses grow due to continued investment in product development and sales and marketing. Stock-based compensation was $60.8 million, compared to $55.1 million in Q2 FY2025. The company also repurchased $39.9 million in its own shares, showing ongoing use of free cash flow for shareholder returns. Capital spending was modest, with capital expenditures of $2.1 million, and Box does not currently pay a dividend. For the next quarter, Box expects GAAP revenue of $298-299 million, targeting around 8 % growth. Non-GAAP operating margin is forecast at about 28%. Non-GAAP EPS is projected in the range of $0.31 to $0.32, again pressured by ongoing non-cash deferred tax accounting, with management flagging a roughly $0.14 negative impact similar to this quarter. For the full fiscal year, guidance was raised modestly to $1.170-$1.175 billion in GAAP revenue and non-GAAP EPS of $1.26-$1.28. Box pays dividends to preferred stockholders. Investors and observers should monitor whether billings growth recovers in the coming quarters. Watch for further adoption of Box's Enterprise Advanced subscription and expansion of AI-driven content solutions, and for management's ability to manage foreign exchange headwinds since about one‑third of sales are outside the United States, mainly in Japanese Yen. Attention will also be on how Box turns strong pipeline and bookings into realized revenue and achieves sustained operating margin progress while investing in product innovation.

Box raises FY 2026 revenue guidance to $1.175B as Enterprise Advanced deals double and AI adoption accelerates (NYSE:BOX)

CEO Aaron Levie reported "a strong second quarter with results above our guidance, reflecting continued growth in customer adoption of Box AI and our advanced workflow capabilities." He highlighted revenue growth of 9%, RPO Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.