Financial outcomes for the initial quarter of Fiscal Year 2026, as detailed by Box.
Box Inc. Reports Q1 FY2026 Financial Results, Highlights Strong Revenue Growth and Robust Operating Margins
Box Inc., the leader in intelligent content management, has announced its financial results for the first quarter of its 2026 fiscal year, ending April 30, 2025. The company showcased a mix of positive results, including a significant revenue growth and robust operating margins.
Aaron Levie, co-founder and CEO of Box, expressed enthusiasm about the company's performance in the AI-driven era. He emphasized Box's ability to help businesses unlock value from their unstructured data using its Intelligent Content Management platform. The company recently unveiled its largest set of AI innovations yet, including new AI Agents that integrate with leading models and software platforms [1].
The financial highlights of the quarter are as follows:
- Revenue: Box Inc. reported a total revenue of $276.3 million, marking a 4% increase year-over-year, or 5% when adjusted for constant currency [1].
- Operating Margin: The company achieved a GAAP operating margin of 2.3%, while the non-GAAP operating margin stood at 25.3% [1].
- Net Income Per Share (EPS): GAAP EPS came in at $0.02, falling short of the estimated $0.03 due to factors such as foreign exchange rates and deferred tax expenses. However, non-GAAP EPS was $0.30, surpassing the consensus estimate of $0.25 by $0.05 [2][3].
- Gross Margin: The gross margin remained steady at 78.0% on a GAAP basis and slightly rose to 80.5% on a non-GAAP basis [1].
- Free Cash Flow: Non-GAAP free cash flow amounted to $118.3 million, experiencing a slight decline compared to the previous year [1].
- Billings and Performance Obligations: Billings increased by 27% year-over-year to $242.3 million, while remaining performance obligations (RPO) reached $1.469 billion, growing by 21% year-over-year [1][3].
Looking ahead, Box Inc. has set a revenue growth target of 7% for its entire 2026 fiscal year, demonstrating confidence in its AI-driven content strategy [1]. DA Davidson has revised its FY2026 EPS estimates for Box, lowering the loss per share from a previous estimate of $0.39 to $0.26, while maintaining a "Buy" rating and a target price of $45.00 [2].
The company is focusing on leveraging AI to deliver value for its customers and drive future growth [1]. By offering innovative AI Agents, integrating with leading models, and expanding its platform, Box aims to capitalize on the vast opportunity of AI to transform unstructured data into actionable insights [1].
Sources:[1] - Business Wire (2025). Box Inc. Announces Preliminary Financial Results for Fiscal First Quarter 2026. [www.businesswire.com][2] - Yahoo Finance (2025). DA Davidson raises Box Inc. (BOX) price target to $45.00. [finance.yahoo.com][3] - Seeking Alpha (2025). Box, Inc. Announces Preliminary Q1 FY2026 Results. [seekingalpha.com]
- Box Inc., in the AI-driven era, leverages technology and artificial-intelligence to deliver value for its customers, driving future growth.
- The company's largest set of AI innovations includes new AI Agents that integrate with leading models and software platforms, aiming to capitalize on the vast opportunity of AI to transform unstructured data into actionable insights.
- The robust operating margins and significant revenue growth reported in Q1 FY2026 reflect Box Inc.'s performance in the financial sector, particularly the investing and business sectors.
- In the cloud environment, Box Inc. achieved a non-GAAP operating margin of 25.3% in Q1 FY2026, emphasizing its importance in the performance and security aspects of cloud-based solutions.
