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 Q4 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise
Read MoreHide Full Article
Key Takeaways
BOX posted Q4 non-GAAP EPS of 49 cents, up 17% Y/Y, beating estimates as revenues rose 9%.
BOX delivered 82.3% gross margin and 30.6% operating margin, both expanding Y/Y.
BOX sees FY27 revenues of $1.275B and EPS of $1.55, implying solid growth.
Box (BOX - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of 49 cents per share, which increased 16.7% year over year. The figure surpassed the Zacks Consensus Estimate by 48.48%.
Total revenues of $305.9 million beat the consensus mark by 0.61%. The top line increased 9% year over year on a reported basis and 8% on a constant-currency (cc) basis.
Box shares were up 1.44% at the time of writing this article. In the trailing 12 months, BOX shares dropped 26.1%, underperforming the Zacks Computer and Technology sector’s return of 28.4%.
BOX’s Q4 Metrics in Detail
Billings were $419.8 million in the reported quarter, increasing 5% year over year on a reported basis and 4% on a cc basis. The company generated 66% of its revenues from Suite’s customers in the fourth quarter of fiscal 2026.
Box’s net retention rate was 104% at the end of the fiscal fourth quarter, up 200 bps year over year.
The company’s remaining performance obligations (RPO) totaled $1.7 billion, up 17% year over year on a reported basis and 16% on a cc basis. This includes $914 million in short-term RPO (up 12% year over year) and $797 million in long-term RPO (up 22% year over year).
BOX’s Q4 Operating Details
Fourth-quarter fiscal 2026 non-GAAP gross margin was 82.3%, which expanded 130 basis points (bps) year over year. Sequentially, gross margin expanded 60 bps.
As a percentage of revenues, non-GAAP sales and marketing were down 200 bps sequentially, whereas non-GAAP research and development expenses and non-GAAP general and administrative expenses were in line sequentially.
On a non-GAAP basis, the company recorded an operating margin of 30.6%, which expanded 330 bps year over year. Sequentially, the operating margin expanded 200 basis points sequentially.
BOX’s Balance Sheet & Cash Flow Details
As of Jan. 31, 2026, cash and cash equivalents were $478 million, down from $730 million as of Oct. 31, 2025.
Box generated $110.3 million in cash from operations in the fiscal fourth quarter, up from $73.1 million in the previous quarter. The company generated a non-GAAP free cash flow of $97.5 million in the reported quarter.
In the fourth quarter of 2026, Box repurchased approximately 4.4 million shares for $126 million. The company had roughly $59 million under its current buyback capacity.
BOX Offers Q1 & FY27 Guidance
For the first quarter of fiscal 2027, Box expects revenues of roughly $304 million, suggesting 10% year-over-year increase and 9% on a cc basis.
The non-GAAP operating margin for the fiscal fourth quarter is expected to be 27.5%. On a non-GAAP basis, BOX expects earnings of 36 cents per share.
For fiscal 2027, BOX expects revenues to be approximately $1.275 billion, indicating a year-over-year increase of 8% on a reported basis and 9% on a cc basis.
The non-GAAP operating margin for fiscal 2027 is expected to be approximately 28%. Non-GAAP earnings are expected to be $1.55 per share.
Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine and Amphenol are currently pegged at 19.3%, 41.5% and 21.9%, respectively.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
BOX's Q4 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise
Key Takeaways
Box (BOX - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of 49 cents per share, which increased 16.7% year over year. The figure surpassed the Zacks Consensus Estimate by 48.48%.
Total revenues of $305.9 million beat the consensus mark by 0.61%. The top line increased 9% year over year on a reported basis and 8% on a constant-currency (cc) basis.
Box shares were up 1.44% at the time of writing this article. In the trailing 12 months, BOX shares dropped 26.1%, underperforming the Zacks Computer and Technology sector’s return of 28.4%.
BOX’s Q4 Metrics in Detail
Billings were $419.8 million in the reported quarter, increasing 5% year over year on a reported basis and 4% on a cc basis. The company generated 66% of its revenues from Suite’s customers in the fourth quarter of fiscal 2026.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
Box’s net retention rate was 104% at the end of the fiscal fourth quarter, up 200 bps year over year.
The company’s remaining performance obligations (RPO) totaled $1.7 billion, up 17% year over year on a reported basis and 16% on a cc basis. This includes $914 million in short-term RPO (up 12% year over year) and $797 million in long-term RPO (up 22% year over year).
BOX’s Q4 Operating Details
Fourth-quarter fiscal 2026 non-GAAP gross margin was 82.3%, which expanded 130 basis points (bps) year over year. Sequentially, gross margin expanded 60 bps.
As a percentage of revenues, non-GAAP sales and marketing were down 200 bps sequentially, whereas non-GAAP research and development expenses and non-GAAP general and administrative expenses were in line sequentially.
On a non-GAAP basis, the company recorded an operating margin of 30.6%, which expanded 330 bps year over year. Sequentially, the operating margin expanded 200 basis points sequentially.
BOX’s Balance Sheet & Cash Flow Details
As of Jan. 31, 2026, cash and cash equivalents were $478 million, down from $730 million as of Oct. 31, 2025.
Box generated $110.3 million in cash from operations in the fiscal fourth quarter, up from $73.1 million in the previous quarter. The company generated a non-GAAP free cash flow of $97.5 million in the reported quarter.
In the fourth quarter of 2026, Box repurchased approximately 4.4 million shares for $126 million. The company had roughly $59 million under its current buyback capacity.
BOX Offers Q1 & FY27 Guidance
For the first quarter of fiscal 2027, Box expects revenues of roughly $304 million, suggesting 10% year-over-year increase and 9% on a cc basis.
The non-GAAP operating margin for the fiscal fourth quarter is expected to be 27.5%. On a non-GAAP basis, BOX expects earnings of 36 cents per share.
For fiscal 2027, BOX expects revenues to be approximately $1.275 billion, indicating a year-over-year increase of 8% on a reported basis and 9% on a cc basis.
The non-GAAP operating margin for fiscal 2027 is expected to be approximately 28%. Non-GAAP earnings are expected to be $1.55 per share.
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 better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Advanced Energy Industries sports a Zacks Rank#1 (Strong Buy), whereas Digital Turbine and Amphenol carry a Zacks Rank #2 (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 19.3%, 41.5% and 21.9%, respectively.