BOX (NYSE:BOX) Issues Earnings Results

BOX (NYSE:BOX) issued its quarterly earnings data on Tuesday. The software maker reported $0.40 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.40, FiscalAI reports. BOX had a net margin of 10.59% and a negative return on equity of 21.70%. The firm had revenue of $321.15 million during the quarter, compared to the consensus estimate of $319.33 million. During the same quarter in the previous year, the firm posted $0.33 EPS. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. BOX updated its Q3 2027 guidance to 0.390-0.390 EPS and its FY 2027 guidance to 1.540-1.540 EPS.

Here are the key takeaways from BOX’s conference call:

• Q2 exceeded expectations, with revenue up 9% year over year to $321 million, billings up 17%, operating margin at 29.4%, and EPS of $0.40. Net retention improved to 106%, supported by seat expansion and price increases.
• Box raised FY2027 revenue guidance by $10 million to approximately $1.29 billion and now expects net retention of 106% exiting the year. Management attributed the increase to continued Enterprise Advanced adoption, Box AI demand, and strong bookings.
• Adoption of Enterprise Advanced and AI-related consumption is driving larger expansions, including wall-to-wall deployments and legacy content-management migrations. Box is also expanding its model-neutral agentic platform, MCP integrations, AI units, and forward-deployed engineering resources to support enterprise workflows.
• Gross margin is expected to decline to approximately 80.5% for FY2027, pressured by growing Box AI usage and capacity constraints at public-cloud providers. Management said efficiency improvements could accelerate as those infrastructure constraints ease.
• Box generated $60 million in Q2 free cash flow and repurchased 2.6 million shares for approximately $66 million, with about $378 million of remaining buyback capacity. Weighted-average diluted shares are expected to fall to roughly 141 million for FY2027 from 149 million the prior year.

BOX Stock Up 1.1%

NYSE:BOX opened at $33.35 on Thursday. The business’s 50-day simple moving average is $30.01 and its two-hundred day simple moving average is $26.43. BOX has a 52 week low of $21.34 and a 52 week high of $34.50. The stock has a market cap of $4.62 billion, a PE ratio of 48.33, a P/E/G ratio of 11.65 and a beta of 0.73.

Key BOX News

Here are the key news stories impacting BOX this week:

• Positive Sentiment: Box reported fiscal Q2 2027 adjusted EPS of $0.40, in line with estimates, while revenue of $321.15 million exceeded the $319.33 million consensus and increased 9.2% year over year. Billings rose 17% to $309.5 million, operating cash flow increased 54% to $70.8 million, and remaining performance obligations reached $1.7 billion. Box Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Management’s fiscal Q3 outlook calls for approximately $329 million in revenue and $0.39 in EPS, above analyst expectations of $324.5 million and $0.33, respectively. Full-year fiscal 2027 EPS guidance of $1.54 also exceeded the $1.32 consensus, while revenue guidance remained approximately $1.3 billion. Box Q2 Earnings Results
• Positive Sentiment: DA Davidson raised its Box price target from $45 to $50 and maintained a Buy rating, citing the company’s results and outlook. The higher target suggests substantial potential upside from recent trading levels. Box Analysts Increase Their Forecasts After Q2 Results
• Neutral Sentiment: Box will present at Citi’s 2026 Global TMT Conference on September 8. The webcast could provide additional commentary on enterprise demand, artificial-intelligence adoption and the company’s Intelligent Content Management strategy, but the event is not an immediate earnings catalyst. Box to Present at Investor Conference
• Negative Sentiment: RBC reaffirmed its Underperform rating and $26 price target, arguing that the quarter was only “a step in the right direction.” Its target implies meaningful downside and highlights continued valuation and execution concerns despite the improved outlook. RBC Analyst Comment on Box

Insiders Place Their Bets

In other BOX news, CFO Dylan C. Smith sold 17,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $29.05, for a total transaction of $493,850.00. Following the completion of the sale, the chief financial officer directly owned 1,337,075 shares of the company’s stock, valued at $38,842,028.75. This trade represents a 1.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Aaron Levie sold 15,000 shares of BOX stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $24.32, for a total transaction of $364,800.00. Following the sale, the chief executive officer owned 2,874,673 shares in the company, valued at approximately $69,912,047.36. The trade was a 0.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 71,696 shares of company stock worth $1,956,237. Company insiders own 3.99% of the company’s stock.

Institutional Trading of BOX

Institutional investors and hedge funds have recently bought and sold shares of the stock. Geneos Wealth Management Inc. bought a new position in shares of BOX during the 1st quarter valued at about $31,000. Employees Retirement System of Texas bought a new stake in shares of BOX in the third quarter worth about $35,000. CIBC Private Wealth Group LLC lifted its position in shares of BOX by 1,778.1% in the third quarter. CIBC Private Wealth Group LLC now owns 1,202 shares of the software maker’s stock worth $39,000 after buying an additional 1,138 shares in the last quarter. Toronto Dominion Bank purchased a new stake in shares of BOX in the fourth quarter worth about $60,000. Finally, EverSource Wealth Advisors LLC boosted its stake in BOX by 1,995.4% during the second quarter. EverSource Wealth Advisors LLC now owns 2,263 shares of the software maker’s stock valued at $77,000 after buying an additional 2,155 shares during the last quarter. 86.74% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

BOX has been the subject of several recent research reports. Wall Street Zen lowered BOX from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 9th. Morgan Stanley boosted their price objective on BOX from $33.00 to $36.00 and gave the company an “equal weight” rating in a research note on Wednesday. Weiss Ratings raised shares of BOX from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, July 23rd. DA Davidson raised their target price on shares of BOX from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Royal Bank Of Canada reaffirmed an “underperform” rating and set a $26.00 price target on shares of BOX in a report on Wednesday. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $37.80.

BOX Company Profile

Box, Inc is a leading provider of cloud content management and file sharing solutions designed to support enterprises in securely managing, accessing and collaborating on digital content from anywhere. The company offers a unified platform that enables organizations to store, share and automate workflows across various departments, enhancing productivity and ensuring governance over sensitive information. Box’s services are tailored to meet the needs of industries such as healthcare, financial services, government and media, where compliance and data security are paramount.

The core offerings of Box include its Content Cloud platform, which provides content collaboration, workflow automation, data classification and secure file sharing.