Quick Facts
- Box beat earnings expectations with adjusted EPS of $0.49 vs $0.34 consensus estimate
- Enterprise Advanced AI offering now accounts for 10% of company revenue with 30-40% pricing uplift
- Revenue rose 9% to $305.9 million, ahead of $304.2 million analyst target
Box delivered a powerful earnings beat for Q4 2026, reporting adjusted earnings per share of $0.49 versus analysts’ consensus estimate of $0.34. The cloud storage and content management company posted revenue of $305.9 million, up 9% year-over-year and ahead of the $304.2 million analyst target.
The strong results sent Box stock up 3.6% to $24.80 in after-hours trading. The company’s AI-focused strategy appears to be paying off as it faces competitive pressure from Microsoft and Google in the enterprise content management space.
CEO Aaron Levie credited the performance to momentum behind Enterprise Advanced, the company’s premium offering that provides access to sophisticated AI features. This product tier now represents 10% of Box’s total revenue and commands a 30% to 40% pricing premium over the standard Enterprise Plus plan.
‘Fiscal 2026 was a defining year for Box, as we executed on the launch of Enterprise Advanced, delivering customers our most powerful capabilities around advanced AI and intelligent workflow automation,’ Levie said.
Box enhanced its AI capabilities during the quarter with two new products. Box Extract enables employees to surface business insights from documents automatically. Box Shield Pro uses AI agents to automate content classification and detect ransomware threats faster.
The company’s large enterprise customer base grew to 2,090 accounts paying more than $100,000 annually, representing 9% year-over-year growth. For fiscal 2026, Box generated $1.18 billion in revenue, up 8% from the prior year, with operating margins of 28%.
CFO Dylan Smith highlighted improved customer retention rates. ‘Our strong results in fiscal 2026 demonstrate the success of our Intelligent Content Management platform strategy as we drove a significant improvement in our net retention rate,’ he said.
Box provided optimistic guidance for fiscal 2027, projecting adjusted EPS of $1.55 versus the $1.53 analyst estimate and revenue of $1.28 billion compared to the $1.27 billion consensus. For the current quarter, the company expects 36 cents per share earnings at the midpoint, above the 32-cent Street estimate.
The results demonstrate Box’s ability to compete against AI disruption by embracing the technology rather than viewing it as a threat. Despite the strong performance, Box stock remains undervalued according to analysts, trading near $23 against an average price target of $38.
Read more: Box brushes aside fears of AI’s threat with powerful earnings beat