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BOX Q1 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Fall
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Key Takeaways
BOX posted Q1 non-GAAP EPS of $0.37 and revenues of $305.9M, both above estimates.
Suites were 675 of revenues and net retention surged 105% as Enterprise Advanced and Box AI adoption grew.
BOX repurchased 4.8M shares for $114M and raised FY27 revenue guide to about $1.28B.
Box (BOX - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 37 cents per share, which increased 23.3% year over year. The figure surpassed the Zacks Consensus Estimate by 2.78%.
Revenues of $305.9 million increased 10.7% from the year-ago quarter and edged past the consensus mark by 0.64%.
Box shares were down 1.08% at the time of writing this article. In the year-to-date period, BOX shares dropped 14.4%, underperforming the Zacks Computer and Technology sector’s return of 17.4%.
BOX’s Q1 Metrics in Detail
Billings were $255.4 million in the reported quarter, up 5% year over year on a reported basis and 13% on a cc basis. Management attributed the strength to robust bookings momentum rather than early renewals or unusual payment behavior. A key contributor was the continued mix shift toward Suites. Suites customers accounted for 67% of revenues, up from 61% a year ago, underscoring the company’s progress in consolidating demand around higher-value bundles that incorporate workflow and AI capabilities.
The quarter reflected stronger adoption of Enterprise Advanced and broader Box AI usage. Net retention rate improved to 105%, indicating healthier expansion within the installed base, as customers leaned further into intelligent workflow use cases.
Customer quality also strengthened. Customers paying at least $100,000 annually grew 11% year over year, supporting the view that enterprise-oriented deployments remain a meaningful driver of Box’s growth profile.
The company’s remaining performance obligations (RPO) totaled $1.6 billion, up 12% year over year on a reported basis and 16% on a cc basis, reflecting the benefit of strong contract durations and sustained customer commitments. This includes $880.2 million in short-term RPO (up 8% on a reported basis and 12% on a constant currency basis) and $761.7 million in long-term RPO (up 16% year over year on a reported basis and 22% on cc basis).
BOX’s Q1 Operating Details
Profitability expanded alongside the stronger top-line trajectory. The non-GAAP gross margin for first-quarter fiscal 2027 improved to 81.5% from 80.5% in the year-ago period, reflecting continued scale benefits in the model.
Operating leverage also showed up in operating profitability. Non-GAAP operating margin rose to 27.7% from 25.3% a year earlier, pointing to a better balance between growth investments and expense discipline.
BOX’s Balance Sheet & Cash Flow Details
As of April 30, 2026, cash and cash equivalents, restricted cash and short-term investments were about $479 million, up from $478 million as of Jan.31, 2026.
Box generated $140.2 million in net cash from operating activities in the fiscal first quarter, up from $110.3 million in the previous quarter. The company generated a non-GAAP free cash flow of $127.7 in the reported quarter, up 10% and 8% year over year, respectively.
Capital returns accelerated. The company repurchased about 4.8 million shares for roughly $114 million during the quarter and ended April 30, 2026, with approximately $445 million remaining under its current buyback authorization.
BOX Offers Q2 & FY27 Guidance
Management’s outlook embedded continued momentum in intelligent workflows and Enterprise Advanced. For the second quarter of fiscal 2027, the company expects revenues of about $319 million, representing approximately 9% year-over-year growth or 10% growth in constant currency. Non-GAAP diluted earnings of roughly 39 cents per share, with FX expected to be a headwind to both metrics.
For full-year fiscal 2027, BOX raised its revenue view to approximately $1.28 billion and guided to non-GAAP diluted earnings of about $1.56 per share. The company also maintained a non-GAAP operating margin outlook at roughly 28%, reflecting confidence in sustaining profitable growth while investing in AI-driven product initiatives such as Box Agent and Box Automate.
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BOX Q1 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Fall
Key Takeaways
Box (BOX - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 37 cents per share, which increased 23.3% year over year. The figure surpassed the Zacks Consensus Estimate by 2.78%.
Revenues of $305.9 million increased 10.7% from the year-ago quarter and edged past the consensus mark by 0.64%.
Box shares were down 1.08% at the time of writing this article. In the year-to-date period, BOX shares dropped 14.4%, underperforming the Zacks Computer and Technology sector’s return of 17.4%.
BOX’s Q1 Metrics in Detail
Billings were $255.4 million in the reported quarter, up 5% year over year on a reported basis and 13% on a cc basis. Management attributed the strength to robust bookings momentum rather than early renewals or unusual payment behavior. A key contributor was the continued mix shift toward Suites. Suites customers accounted for 67% of revenues, up from 61% a year ago, underscoring the company’s progress in consolidating demand around higher-value bundles that incorporate workflow and AI capabilities.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
The quarter reflected stronger adoption of Enterprise Advanced and broader Box AI usage. Net retention rate improved to 105%, indicating healthier expansion within the installed base, as customers leaned further into intelligent workflow use cases.
Customer quality also strengthened. Customers paying at least $100,000 annually grew 11% year over year, supporting the view that enterprise-oriented deployments remain a meaningful driver of Box’s growth profile.
The company’s remaining performance obligations (RPO) totaled $1.6 billion, up 12% year over year on a reported basis and 16% on a cc basis, reflecting the benefit of strong contract durations and sustained customer commitments. This includes $880.2 million in short-term RPO (up 8% on a reported basis and 12% on a constant currency basis) and $761.7 million in long-term RPO (up 16% year over year on a reported basis and 22% on cc basis).
BOX’s Q1 Operating Details
Profitability expanded alongside the stronger top-line trajectory. The non-GAAP gross margin for first-quarter fiscal 2027 improved to 81.5% from 80.5% in the year-ago period, reflecting continued scale benefits in the model.
Operating leverage also showed up in operating profitability. Non-GAAP operating margin rose to 27.7% from 25.3% a year earlier, pointing to a better balance between growth investments and expense discipline.
BOX’s Balance Sheet & Cash Flow Details
As of April 30, 2026, cash and cash equivalents, restricted cash and short-term investments were about $479 million, up from $478 million as of Jan.31, 2026.
Box generated $140.2 million in net cash from operating activities in the fiscal first quarter, up from $110.3 million in the previous quarter. The company generated a non-GAAP free cash flow of $127.7 in the reported quarter, up 10% and 8% year over year, respectively.
Capital returns accelerated. The company repurchased about 4.8 million shares for roughly $114 million during the quarter and ended April 30, 2026, with approximately $445 million remaining under its current buyback authorization.
BOX Offers Q2 & FY27 Guidance
Management’s outlook embedded continued momentum in intelligent workflows and Enterprise Advanced. For the second quarter of fiscal 2027, the company expects revenues of about $319 million, representing approximately 9% year-over-year growth or 10% growth in constant currency. Non-GAAP diluted earnings of roughly 39 cents per share, with FX expected to be a headwind to both metrics.
For full-year fiscal 2027, BOX raised its revenue view to approximately $1.28 billion and guided to non-GAAP diluted earnings of about $1.56 per share. The company also maintained a non-GAAP operating margin outlook at roughly 28%, reflecting confidence in sustaining profitable growth while investing in AI-driven product initiatives such as Box Agent and Box Automate.
Zacks Rank & Stocks to Consider
Currently, Box carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Ciena (CIEN - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Ciena sports a Zacks Rank #1 (Strong Buy), whereas Advanced Energy Industries and Amphenol carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Advanced Energy Industries, Ciena and Amphenol are currently pegged at 30.1%, 59.6% and 24%, respectively.