BOX's Q4 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise

Box BOX reported fourth-quarter fiscal 2026 non-GAAP earnings of 49 cents per share, which increased 16.7% year over year. The figure surpassed the Zacks Consensus Estimate by 48.48%.

Total revenues of $305.9 million beat the consensus mark by 0.61%. The top line increased 9% year over year on a reported basis and 8% on a constant-currency (cc) basis.

Box shares were up 1.44% at the time of writing this article. In the trailing 12 months, BOX shares dropped 26.1%, underperforming the Zacks Computer and Technology sector’s return of 28.4%.

BOX’s Q4 Metrics in Detail

Billings were $419.8 million in the reported quarter, increasing 5% year over year on a reported basis and 4% on a cc basis. The company generated 66% of its revenues from Suite’s customers in the fourth quarter of fiscal 2026. 
 

                             Box, Inc. Price, Consensus and EPS Surprise

Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote

Box’s net retention rate was 104% at the end of the fiscal fourth quarter, up 200 bps year over year.

The company’s remaining performance obligations (RPO) totaled $1.7 billion, up 17% year over year on a reported basis and 16% on a cc basis. This includes $914 million in short-term RPO (up 12% year over year) and $797 million in long-term RPO (up 22% year over year).

BOX’s Q4 Operating Details

Fourth-quarter fiscal 2026 non-GAAP gross margin was 82.3%, which expanded 130 basis points (bps) year over year. Sequentially, gross margin expanded 60 bps.

As a percentage of revenues, non-GAAP sales and marketing were down 200 bps sequentially, whereas non-GAAP research and development expenses and non-GAAP general and administrative expenses were in line sequentially.

On a non-GAAP basis, the company recorded an operating margin of 30.6%, which expanded 330 bps year over year. Sequentially, the operating margin expanded 200 basis points sequentially.

BOX’s Balance Sheet & Cash Flow Details

As of Jan. 31, 2026, cash and cash equivalents were $478 million, down from $730 million as of Oct. 31, 2025.

Box generated $110.3 million in cash from operations in the fiscal fourth quarter, up from $73.1 million in the previous quarter. The company generated a non-GAAP free cash flow of $97.5 million in the reported quarter.

In the fourth quarter of 2026, Box repurchased approximately 4.4 million shares for $126 million. The company had roughly $59 million under its current buyback capacity.

BOX Offers Q1 & FY27 Guidance

For the first quarter of fiscal 2027, Box expects revenues of roughly $304 million, suggesting 10% year-over-year increase and 9% on a cc basis. 

The non-GAAP operating margin for the fiscal fourth quarter is expected to be 27.5%. On a non-GAAP basis, BOX expects earnings of 36 cents per share. 

For fiscal 2027, BOX expects revenues to be approximately $1.275 billion, indicating a year-over-year increase of 8% on a reported basis and 9% on a cc basis. 

The non-GAAP operating margin for fiscal 2027 is expected to be approximately 28%. Non-GAAP earnings are expected to be $1.55 per share.

Zacks Rank & Stocks to Consider

Currently, Box carries a Zacks Rank #3 (Hold).

Advanced Energy Industries AEIS, Digital Turbine APPS and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. 

Advanced Energy Industries sports a Zacks Rank#1 (Strong Buy), whereas Digital Turbine and Amphenol carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine and Amphenol are currently pegged at 19.3%, 41.5% and 21.9%, respectively.
 

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This article originally published on Zacks Investment Research (zacks.com).

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