Box Posts Earnings Beat, But Analyst Maintains Bearish View About Uncertain Enterprise Advanced Adoption

RBC Capital Markets analyst Rishi Jaluria reiterated an Underperform rating and a price target of $21 on Box Inc. BOX after the third-quarter results.

On Tuesday, Box reported earnings of 45 cents per share, which beat the analyst consensus estimate of 42 cents, and revenue of $276 million, which beat the consensus estimate of $275.17 million.

Box sees fourth-quarter revenue of $279 million versus the $278.544 million estimate, and adjusted earnings of 41 cents per share, in line with estimates.

The analyst says the quarter was mixed, and until further clarity on customer interest in Enterprise Advanced emerges, the company’s thesis remains unchanged.

Positively, management noted further signs of easing macro headwinds, added the analyst.

The analyst wrote that he is encouraged by the expected 20%-40% pricing uplift for customers upgrading to the new Enterprise Advanced plan, set to launch in January. But widespread enterprise adoption, critical for significant pricing gains, may face delays amid ongoing privacy concerns, noted the analyst.

As a result, Jaluria said he finds it challenging to forecast FY26 acceleration, reinforcing the view that long-term targets remain a best-case scenario.

The analyst said FY25 revenue guidance was raised by $2 million on an as-reported basis, which reflected a net $3 million increase in constant currency after FX changes were factored in.

Despite a lack of significant upside in the third quarter, the guidance increase was encouraging, similar to the second quarter, and suggested improved visibility into the company’s results.

Investors can gain exposure to the stock via Global X Cloud Computing ETF CLOU and Invesco S&P SmallCap Information Technology ETF PSCT.

BOX Price Action: BOX shares are down 7.61% at $31.80 at publication Wednesday.

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