Box Sees Strong Q4 Bookings And AI Expansion, But Margin Outlook Prompts Analyst Adjustments

Zinger Key Points

Box Q4 revenue rose 6.5% to $280M, beating estimates, but FY26 margin outlook weighed on stock, down 4.48%.
Wall Street firms rerate Box as billings re-accelerate, but lower margins and cautious FY26 guidance impact sentiment.
Get 5 stock picks identified before their biggest breakouts, identified by the same system that spotted Insmed, Sprouts, and Uber before their 20%+ gains.

On Tuesday, Box reported quarterly earnings of 42 cents per share, which met the analyst consensus estimate. Quarterly revenue was $280 million (up from $262.87 million a year ago), which beat the analyst consensus estimate of $279.42 million.

Also Read: GM, Stellantis Supplier Samsung SDI Weighs New US Battery Plant Amid Trump’s EV Policy Shift

Box expects first-quarter earnings of 25 cents-26 cents, versus the 43-cent estimate, and revenue of $274 million-$275 million, versus the $279.5 million estimate.

Wall Street firms rerated Box Inc BOX after its fourth-quarter report:

JP Morgan analyst Pinjalim Bora maintained Box with an Overweight and lowered the price target from $38 to $37.
Raymond James analyst Brian Peterson reiterated an Outperform on Box with a price target of $38, down from $40.

JP Morgan: Box delivered a good end to the year, with forward-looking metrics coming in ahead of guidance and consensus expectations, driven by a solid bookings cadence in addition to a higher volume of early renewals in the quarter. Specifically, calculated billings grew 7% in CC, marking an acceleration relative to last quarter and landing ahead of guidance of low-single-digits, while RPO grew 14% in CC, steady versus last quarter.

Revenue landed essentially in line despite a higher incremental FX headwind, and adjusted EPS was above. DBNRR of 102% was consistent with the prior two quarters, while gross retention remained at 3% for the eleventh consecutive quarter.

Additionally, Box noted strong momentum around its new Enterprise Advanced SKU, underscored by several deals closing in the fourth quarter even though it was generally available at the very end of the quarter. The company realized a 20-40% ACV uplift with that SKU relative to Enterprise Plus deals.

Looking forward, while Box guided to a billings acceleration in fiscal 2026, the revenue guide marked a deceleration by landing in line with street expectations, and adjusted operating margin guidance came in below as the company looks to make “methodical” GTM investments to capitalize on the AI-related opportunity ahead.

Overall, Bora noted the fourth quarter as a good end to the year, with Box seeing solid momentum in some of its newer products, positively impacting bookings, and an improving revenue growth glide path through the year.

The analyst’s medium to long-term thesis remains intact, as he noted that Box positions itself as the unifying content layer between collaboration tools and enterprise applications. Box also utilizes generative AI to help its customers unlock value from the vast array of enterprise content within Box.

Bora projected first-quarter revenue of $274.52 million and adjusted EPS of $0.25.

Raymond James: Peterson rerated following fourth-quarter results that showed an impressive re-acceleration in billings, although shares traded down after hours on a below consensus margin outlook for fiscal 2026.

With early progress on the Enterprise Advanced Plans diversification of the go-to-market motion and interest in AI functionality, the analyst noted the time is right to redeploy some of the recent margin expansion back into growth.

Box has made tremendous strides in improving its profitability profile over the last several years, and Peterson noted multiple expansions would be more driven by increased confidence in the durability of growth.

Peterson projected first-quarter revenue of $274.21 million and adjusted EPS of $0.25.

Price Action: BOX stock is down 3.79% at $32.20 at the last check on Wednesday.

Also Read: