Live: Will Box. Inc (BOX) Beat Q2 Earnings Estimates?

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My Reaction on Q2

4:26 pm

Metric	Pre-Earnings Consensus	New Guide	Direction
FY26 Revenue	$1.17B	$1.170–$1.175B	Flat
FY26 EPS	$1.27	$1.26–$1.28	Flat

Sentiment Bullets:

• Bullish: AI adoption momentum and FedRAMP High positioning keep long-term story alive.

• Neutral: Guidance unchanged; execution steady but uninspiring.

• Bearish: Billings softness reinforces investor worries on underlying growth.

What Changed This Quarter

4:22 pm

• Billings slowed: +3% YoY, impacted by Q1 renewal pull-forward.

• Margins steady: Gross margin held >81%, op margin at ~29%.

• Deferred tax impact: Non-cash tax expense pressured GAAP EPS.

• RPO strong: +16% YoY growth shows demand pipeline intact.

• AI expansion: Enterprise Advanced momentum continues with new AI framework and partner integrations.

Key Operating Highlights

4:18 pm

KPI	Q2 FY26	YoY Change	Why It Matters
Revenue	$294.0M	+9%	Beat consensus but only mid-single digit constant-currency.
RPO	$1.5B	+16%	Solid backlog growth underpins FY guide.
Billings	$264.9M	+3%	Weighed by Q1 pull-forward; soft vs. expectations.
Gross Margin (Non-GAAP)	81.4%	–20bps	Remains best-in-class efficiency.
Operating Margin (Non-GAAP)	28.6%	+20bps	Confirms profitability discipline.
Free Cash Flow	$35.7M	+9%	Cash flow resilience despite FX/tax headwinds.

Shares Recovering, Now Up 1.7% After-Hours

4:16 pm

EPS for the year guiding higher and likely causing the reverse course on share price after hours.

Guidance Update

Period	Revenue	EPS (Non-GAAP)	Operating Margin	Commentary
Q3 FY26	$728–$730M	$0.74–$0.75	22%	Flat sequentially, implies single-digit growth but steady margins.
FY26	$2.875–$2.885B	$3.33–$3.38	25–26%	Raised EPS vs. prior guide; margins holding strong.

More commentary

4:13 pm

Metric	Reported	Consensus	Beat/Miss
Revenue	$294.0M	$290.2M	Beat
EPS (Non-GAAP, Diluted)	$0.33	$0.31	Beat
FY26 Revenue Guide	$1.170–$1.175B	$1.17B	In Line
FY26 EPS Guide	$1.26–$1.28	$1.27	Flat

“With Box’s Intelligent Content Management platform, enterprises can finally leverage AI agents to take full advantage of their unstructured data. In the second quarter, we continued to see strong momentum with Enterprise Advanced … In this AI-first era, we are doubling down on our Intelligent Content Management platform.” — Aaron Levie, CEO

Levie stressed the AI-driven product roadmap, pointing to Enterprise Advanced as the anchor of Box’s AI monetization strategy.

Shares down 1.48%, Earnings Are In

4:10 pm

Revenue was $294.00 million, above the $290.19 million consensus estimate. Non-GAAP EPS was $0.33, above the $0.31 estimate. Box Inc reported a 9% year-over-year increase in revenue, driven by strong demand for its Intelligent Content Management platform and AI solutions.

The company achieved a GAAP operating margin of 7.0% and a non-GAAP operating margin of 28.6%. Remaining performance obligations rose 16% year-over-year, reflecting robust future demand. The company continues to expand its AI capabilities and strategic partnerships, enhancing its product offerings and market reach.

EPS	0.33 Beat	Est. EPS	0.31
Revenue	$294.00M Beat	Est. Revenue	$290.19M

Box Closing the day down .72%

4:00 pm

Earnings numbers will be in shortly. Stay tuned for updates on the numbers. Updates will automatically be added to this page as they are published.

Recent Earnings Price Movements

3:00 pm

Quarter	EPS Surprise	1-Day Move	7-Day Move	14-Day Move
Q1 2026	+17.17%	+17.23%	+20.60%	+13.55%
Q4 2025	−0.60%	−3.23%	−9.38%	−7.95%
Q3 2025	+6.46%	−7.70%	−4.07%	−7.12%
Q2 2025	+8.62%	+10.83%	+12.49%	+16.00%

Box (NYSE: BOX) reports after the close tonight. The setup is a classic execution test: investors want proof that AI-led monetization (Enterprise Advanced, AI unit consumption) can lift growth without denting margins, while billings/RPO dynamics and federal demand stay on track. Management’s own guidance keeps expectations grounded — and very specific about near-term billings linearity.

What to Expect (Consensus)

• Revenue: $290.19M
• EPS (Normalized): $0.31
• FY2026 Revenue: $1.17B
• FY2026 EPS: $1.27
• FY2027 Revenue: $1.26B
• FY2027 EPS: $1.40

Key Areas to Watch Tonight

• AI monetization & pricing uplift
  Enterprise Advanced is seeing strong adoption with target 20–40% price increases; watch attach rates, AI unit consumption, and how much of growth comes from price vs. seats. Management still aims for AI to be margin-neutral as inference costs fall.

• Billings/RPO and the early-renewal pull-forward
  Q1 billings got a ~$7M early-renewal tailwind, with ~$6M effectively pulled from Q2; management expects Q2 billings roughly flat YoY. Tonight’s billings and RPO cadence vs. that context will be a focal point.

• Profitability guardrails
  Guide implies ~81% gross margin and ~28% non-GAAP operating margin for Q2. Investors will look for confirmation that AI features and expanded suites don’t dilute the model.

• Public-sector traction after FedRAMP High
  The new FedRAMP High authorization expands eligibility for sensitive federal workloads. Any color on pipeline/close rates in DoD and regulated environments is a potential upside catalyst.

• Ecosystem leverage
  Deeper integrations (e.g., ChatGPT Deep Research, Microsoft 365 Copilot, Google Agentspace, Salesforce Agentforce) position Box as a neutral content layer; look for partner-sourced wins and usage anecdotes.

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