We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BOX's Q3 Earnings Meet Estimates, Revenues Rise Y/Y, Shares Fall
Read MoreHide Full Article
Key Takeaways
Box's Q3 revenues rose 9.1% while earnings fell 31% year over year.
Billings climbed 11.8% with Suite customers driving 64% of revenues and RPO rising to $1.5 billion.
Box expects Q4 revenues of about $304M and FY26 revenues of $1.175B alongside stable operating margins.
Box (BOX - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of 31 cents per share, which declined 31% year over year. The figure was in line with the Zacks Consensus Estimate.
Total revenues of $301 million surpassed the consensus mark by 0.89%. The top line increased 9.1% year over year on a reported basis and 8% on a constant-currency (cc) basis.
Box shares were down 6.52% at the time of writing this article. In the trailing 12 months, BOX shares dropped 5% against the Zacks Computer and Technology sector’s return of 25%.
BOX’s Q3 Metrics in Detail
Billings were $296 million in the reported quarter, increasing 11.8% year over year on a reported and cc basis. The company generated 64% of its revenues from Suite’s customers in the third quarter of fiscal 2026.
Box’s net retention rate was 104% at the end of the fiscal third quarter, up 200 bps year over year.
The company’s remaining performance obligations (RPO) totaled $1.5 billion, up 18% year over year on a reported basis and 19% on a cc basis. This includes $837 million in short-term RPO (up 14% year over year) and $680 million in long-term RPO (up 25% year over year).
BOX’s Q3 Operating Details
Third-quarter fiscal 2026 non-GAAP gross margin was 81.7%, which contracted 20 basis points (bps) year over year. Sequentially, gross margin expanded 30 bps.
As a percentage of revenues, non-GAAP sales and marketing and non-GAAP general and administrative expenses were flat sequentially, whereas non-GAAP research and development expenses were up 100 bps sequentially.
On a non-GAAP basis, the company recorded an operating margin of 28.6%, which contracted 50 bps year over year. Sequentially, the operating margin was flat.
BOX’s Balance Sheet & Cash Flow Details
As of Oct. 31, 2025, cash and cash equivalents were $730 million, down from $758 million as of July 31, 2025.
Box generated $73.1 million in cash from operations in the fiscal third quarter, up from $45.9 million in the previous quarter. The company generated a non-GAAP free cash flow of $61.4 million in the reported quarter.
In the third quarter of 2025, Box repurchased approximately 2.4 million shares for $77 million. The company had roughly $35 million under its current buyback capacity. BOX expanded its share repurchase program by $150 million.
BOX Offers Q4 & FY26 Guidance
For the fourth quarter of fiscal 2026, Box expects revenues of roughly $304 million, suggesting 9% year-over-year increase and 8% on a cc basis. This includes an expected positive impact of approximately 100 bps due to favorable forex.
The non-GAAP operating margin for the fiscal fourth quarter is expected to be 30%. On a non-GAAP basis, BOX expects earnings of 33 cents per share.
For fiscal 2026, BOX expects revenues to be approximately $1.175 billion, indicating year-over-year increase of 8% on a reported basis and 7% on a cc basis. This includes an expected positive impact of approximately 70 bps due to favorable forex.
The non-GAAP operating margin for fiscal 2026 is expected to be approximately 28%. Non-GAAP earnings are expected to be approximately $1.28 per share.
For fiscal 2026, the billings growth is expected to be in the 9-10% range. This includes a tailwind of approximately 130 basis points from favorable forex.
Zacks Rank & Stocks to Consider
Currently, Box carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Digital Turbine (APPS - Free Report) and Amphenol (APH - Free Report) are some top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine and Amphenol are currently pegged at 33.4%, 42.4% and 38.7%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
BOX's Q3 Earnings Meet Estimates, Revenues Rise Y/Y, Shares Fall
Key Takeaways
Box (BOX - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of 31 cents per share, which declined 31% year over year. The figure was in line with the Zacks Consensus Estimate.
Total revenues of $301 million surpassed the consensus mark by 0.89%. The top line increased 9.1% year over year on a reported basis and 8% on a constant-currency (cc) basis.
Box shares were down 6.52% at the time of writing this article. In the trailing 12 months, BOX shares dropped 5% against the Zacks Computer and Technology sector’s return of 25%.
BOX’s Q3 Metrics in Detail
Billings were $296 million in the reported quarter, increasing 11.8% year over year on a reported and cc basis. The company generated 64% of its revenues from Suite’s customers in the third quarter of fiscal 2026.
Box’s net retention rate was 104% at the end of the fiscal third quarter, up 200 bps year over year.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
The company’s remaining performance obligations (RPO) totaled $1.5 billion, up 18% year over year on a reported basis and 19% on a cc basis. This includes $837 million in short-term RPO (up 14% year over year) and $680 million in long-term RPO (up 25% year over year).
BOX’s Q3 Operating Details
Third-quarter fiscal 2026 non-GAAP gross margin was 81.7%, which contracted 20 basis points (bps) year over year. Sequentially, gross margin expanded 30 bps.
As a percentage of revenues, non-GAAP sales and marketing and non-GAAP general and administrative expenses were flat sequentially, whereas non-GAAP research and development expenses were up 100 bps sequentially.
On a non-GAAP basis, the company recorded an operating margin of 28.6%, which contracted 50 bps year over year. Sequentially, the operating margin was flat.
BOX’s Balance Sheet & Cash Flow Details
As of Oct. 31, 2025, cash and cash equivalents were $730 million, down from $758 million as of July 31, 2025.
Box generated $73.1 million in cash from operations in the fiscal third quarter, up from $45.9 million in the previous quarter. The company generated a non-GAAP free cash flow of $61.4 million in the reported quarter.
In the third quarter of 2025, Box repurchased approximately 2.4 million shares for $77 million. The company had roughly $35 million under its current buyback capacity. BOX expanded its share repurchase program by $150 million.
BOX Offers Q4 & FY26 Guidance
For the fourth quarter of fiscal 2026, Box expects revenues of roughly $304 million, suggesting 9% year-over-year increase and 8% on a cc basis. This includes an expected positive impact of approximately 100 bps due to favorable forex.
The non-GAAP operating margin for the fiscal fourth quarter is expected to be 30%. On a non-GAAP basis, BOX expects earnings of 33 cents per share.
For fiscal 2026, BOX expects revenues to be approximately $1.175 billion, indicating year-over-year increase of 8% on a reported basis and 7% on a cc basis. This includes an expected positive impact of approximately 70 bps due to favorable forex.
The non-GAAP operating margin for fiscal 2026 is expected to be approximately 28%. Non-GAAP earnings are expected to be approximately $1.28 per share.
For fiscal 2026, the billings growth is expected to be in the 9-10% range. This includes a tailwind of approximately 130 basis points from favorable forex.
Zacks Rank & Stocks to Consider
Currently, Box carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Digital Turbine (APPS - Free Report) and Amphenol (APH - Free Report) are some top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Advanced Energy Industries, Digital Turbine and Amphenol each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine and Amphenol are currently pegged at 33.4%, 42.4% and 38.7%, respectively.