Box Inc - Class A
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.16%.
Did BOX Beat Earnings? Q3 2026 Results
Box delivered a mixed fiscal third-quarter report, posting revenue of $301.11 million, up 9.1% year-over-year and edging past the $298.93 million consensus by 0.73%, while non-GAAP diluted EPS of $0.31 came in just below the $0.31 estimate, a 1.21% miss that snapped a five-quarter streak of beating EPS expectations. The earnings shortfall was largely a function of accounting mechanics rather than operational weakness; a $0.16 per-share headwind from non-cash deferred tax expense recognition weighed on the bottom line, compared to just $0.01 in the year-ago period. Beneath that noise, the company's Intelligent Content Management platform showed genuine momentum, with remaining performance obligations climbing 18% to $1.50 billion and net retention improving to 104%, driven by Box AI and Enterprise Advanced adoption lifting both price per seat and seat counts. CEO Aaron Levie and CFO Dylan Smith both executed pre-planned share sales around the report, though the company simultaneously expanded its buyback program by $150 million. Looking ahead, Box guided Q4 revenue of approximately $304 million and full-year fiscal 2026 revenue of approximately $1.18 billion.
- Box AI and Enterprise Advanced adoption driving price per seat increases and seat expansion
- Net retention rate improved to 104%
- Revenue up 9% YoY with billings up 12%
- Remaining performance obligations up 18% to $1.5 billion
- Operating cash flow up 17% YoY
“Our strong third quarter performance proves how quickly enterprises are embracing Box as their AI-powered Intelligent Content Management platform. Enterprises want one platform that brings together security, compliance, collaboration and AI. The power of Box is that customers can have a single agentic platform for managing and working with their unstructured data, leverage all of the leading AI models, and have integration across their tech stack.”
Box CEO, on the earnings call
Forward Guidance & Outlook
Q4 FY26: Revenue expected approximately $304 million (up 9% YoY, 8% constant currency), with ~100 bps positive FX impact. Non-GAAP operating margin expected approximately 30%. Non-GAAP diluted EPS expected approximately $0.33, including $0.19 negative impact from non-cash deferred tax expenses. GAAP diluted EPS expected approximately $0.06. Weighted-average diluted shares ~147 million. Full Year FY26: Revenue expected approximately $1.175 billion (up 8% YoY), with ~70 bps positive FX impact. Non-GAAP operating margin expected approximately 28%. Non-GAAP diluted EPS expected approximately $1.28, including $0.61 negative impact from deferred tax expenses. GAAP diluted EPS expected approximately $0.19. Weighted-average diluted shares ~149 million. $205 million of 0% convertible senior notes mature January 31, 2026; company intends to settle principal in cash with any conversion premium in shares.
BOX YoY Financials
Figures from SEC filings and company reports. Not investment advice.