Box's AI-Driven Surge: Q1 Earnings Beat and Raised Forecast Spark Investor Enthusiasm

Box beats expectations and raises its full-year forecast on agentic AI boost - SiliconANGLE

Box beats expectations and raises its full-year forecast on agentic AI boost Shares of the cloud content storage company Box Inc. jumped late today after it logged better-than-expected earnings and sales and raised its full-year guidance, saying it's seeing real traction with its new agentic artificial intelligence offerings. The company reported first-quarter earnings before certain costs such as stock compensation of 30 cents per share, beating Wall Street's estimate of just 26 cents . Revenue for the period increased 4% to $276.3 million, coming in ahead of the $275 million target. Those numbers helped Box to eke out a total profit of $8.2 million in the quarter, down from $17.2 million in the same period one year ago. Although disappointing, the drop in profitability wasn't unexpected, as Box warned investors three months earlier that its bottom line is likely to be impacted by a stronger U.S. dollar. The company does a lot of business outside of the U.S., with close to a quarter of its revenue coming from Japan, for example. Box co-founder and Chief Executive Aaron Levie (pictured) said the company is emerging at the cusp of a pivotal moment, in which AI is slowly but surely revolutionizing how enterprises do business. "In this AI-first era, organizations are embracing this shift to stay competitive, and at Box, we help businesses to unlock value from their unstructured data with our Intelligent Content Management platform," he said. Box has emerged as a pioneer of AI, making the technology a central aspect of its platform. 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. The company has been gradually expanding its AI offerings ever since, and earlier this month announced a major update with the launch of newer, more powerful AI agents for content search, deep research and data extraction. In an interview, Levie told SiliconANGLE he's seeing a lot of excitement from customers about Box's agentic deep research capabilities, though most customers are still learning how best to utilize it. "We're still on day one of what's fully possible, [but] AI data extraction is very compelling," he said. "We have a lot of core AI agents for interacting with data." According to Levie, most customers are talking about how AI can help to augment and accelerate their work, rather than completely replace the humans that perform existing tasks. In addition, many are looking at using AI to do things that weren't possible before. "Companies are trying to go AI-first, and we're here to help them," he added. Box's AI investments look to be generating a tangible return for the company too, for it's notable that that company is forecasting revenue growth of around 7-8% in the current quarter and full year, as opposed to growth of just 4% in the prior quarter. For instance, Box said it's looking at full-year sales of $1.165 billion to $1.17 billion, up from its earlier guidance of $1.155 billion to $1.160 billion. It also hiked its earnings forecast to a range of $1.22 to $1.26 per share, up from its previous target of $1.13 to $1.17 per share. Investors greeted the revised forecast with delight, as Box's stock gained more than 10% after-hours. Wall Street is looking for full-year revenue of $1.15 billion and earnings of $1.19 per share. For the current quarter, Box is targeting sales of $290 million to $291 million, which would represent growth of 8% at the midpoint. It's also looking for earnings of between 30 cents and 31 cents per share. Analysts have modeled $284.5 million in revenue and earnings of 28 cents per share. With the after-hours price action, Box's stock is now almost flat in the year-to-date, more or less on a par with the broader S&P 500 Index, which has gained about 1% so far this year.

Why Box Stock Jumped Nearly 20% Today

Shares of Box (BOX 17.17%) surged as much as 19.7% higher on Wednesday, peaking around 1:30 p.m. ET. The cloud-based data storage and content management veteran reported robust first-quarter fiscal-year 2026 results on Tuesday evening. By 3:10 p.m. ET, the stock was up about 18% from the previous day's close. Foreign exchange, taxes, and shrinking earnings Box's Q1 2026 sales rose 4% year over year to $276.3 million. Adjusted earnings fell from $0.39 to $0.30 per diluted share, including a $0.01 headwind from changing foreign currency exchange rates. Your average Wall Street analyst would have settled for earnings near $0.26 per share on revenue in the neighborhood of $275.1 million. Looking ahead, Box's management projects second-quarter revenue of approximately $290 million with roughly $0.30 of adjusted earnings per share. These numbers will compare to $270 million and $0.44 per share, respectively, in the year-ago period. Box's next big leap: Feeding the robots Non-cash tax charges are weighing on Box's bottom-line results this year. The company recently turned profitable and is now recognizing $248 million of deferred tax credits, little by little. This item reduced Box's first-quarter adjusted earnings by $0.12 per share. The company recently unveiled a brand-new artificial intelligence (AI) platform that will help enterprise-scale clients feed data to their AI agents. Box's stock is trading at an all-time high today, boosted by a promising AI strategy and five straight quarters of analyst-stumping financial results. Even so, Box shares trade at a fairly modest valuation. In that context, today's significant price jump looks reasonable.