Box, Inc. has reported its preliminary financial results for the first quarter of fiscal year 2026, showcasing a significant leap in revenue and a strong demand for its innovative services. As organizations increasingly embrace artificial intelligence (AI) in their operations, Box is strategically positioned to capitalize on this shift with its Intelligent Content Management (ICM) platform.
Financial Performance Highlights
For the first quarter of fiscal year 2026, Box recorded a revenue of $276.3 million, reflecting a 4% increase year-over-year, which translates to a 5% growth when adjusted for constant currency. This positive trajectory can be attributed to the growing adoption of Box’s solutions across various sectors.
- Remaining Performance Obligations (RPO): Box reported RPO of $1.469 billion, which represents a substantial 21% year-over-year increase, or a 17% increase in constant currency terms.
- Billings Growth: The company achieved billings of $242.3 million, marking a 27% increase compared to the same quarter last year, or 17% when computed in constant currency.
- Profit Margins: Box recorded a GAAP Operating Margin of 2.3% and a Non-GAAP Operating Margin of 25.3%. In terms of performance, the GAAP net income per share stood at $0.02 while the Non-GAAP net income per share was $0.30.
“We are at a pivotal moment in history where AI is revolutionizing work and business,” said Aaron Levie, co-founder and CEO of Box. “In this AI-first era, organizations are embracing this shift to stay competitive. At Box, we help businesses unlock value from their unstructured data with our Intelligent Content Management platform.” This shift reflects the growing realization of the transformative impact AI has on business processes, as noted by market analysts from Statista, highlighting that the AI market is projected to grow at a compound annual growth rate (CAGR) of 40.2% through 2027.
Investments in AI and New Innovations
During the announcement, Box also highlighted its ongoing commitment to innovation. This quarter, they unveiled a new suite of AI advancements, including AI Agents designed to enhance automated workflows, improve decision-making processes, and ultimately boost productivity. “Our balanced financial approach allows us to invest confidently in our ICM platform while delivering profitable growth and consistently returning value to our shareholders,” said Dylan Smith, co-founder and CFO of Box.
- Strategic Partnerships: Box has entered into several key partnerships this quarter, notably with IBM to enhance enterprise AI capabilities using IBM watsonx and Box AI, further solidifying its place within the competitive landscape.
- Recognition and Compliance: Box achieved FedRAMP High Authorization, enabling U.S. government agencies to utilize its services for processing highly sensitive data, thus broadening its market reach considerably.
- Product Advancements: The introduction of Box AI for Mobile empowers users to access AI-driven insights seamlessly on the go, showcasing Box’s dedication to integrating cutting-edge technology into their user experience.
Box’s focus on AI capabilities is echoed in the investment trends within the technology sector, with notable increases in corporate spending on AI solutions, as reported by Gartner. This shift indicates a robust appetite among organizations to adopt AI tools that streamline operations and enhance productivity.
Outlook for FY26
Looking forward, Box anticipates continued growth. For Q2 of FY26, Box projects revenue between $290 million and $291 million, representing an 8% year-over-year increase. The company also expects both GAAP and Non-GAAP operating margins to improve, illustrating strong operational efficiency.
- Guidance for Q2 FY26: GAAP operating margin is expected around 6.0%, while Non-GAAP operating margin is projected at approximately 28%, reflecting strong financial health.
- Full Year FY26 Outlook: Box estimates revenue for the full fiscal year to be in the range of $1.165 billion to $1.170 billion, up 7% from the previous year.
Box’s management is optimistic about their market prospects, stating, “As we address the vast opportunity of AI to transform unstructured data into actionable insight, we are excited to deliver on our commitments to shareholders and customers alike.” The company also emphasizes that despite a significant portion of its revenue generated outside the U.S., their strategies remain robust against foreign exchange fluctuations.
Recent Business Developments
In addition to its financial and product innovations, Box has made notable strides in enhancing its service offerings. Recent announcements include:
- Integration of Box AI with ServiceNow AI Agent Fabric, allowing for advanced automation across various processes.
- Participation in Salesforce Agent Exchange, positioning Box as a leader in innovative AI solutions for businesses.
Box’s significant investments in AI and its alignment with industry trends mark a strategic move to remain competitive in an ever-evolving technological landscape. As organizations increasingly look towards AI to drive efficiency and innovation, Box appears well-equipped to support this transition.
Quick Reference Table
| Metric | Q1 FY26 |
|---|---|
| Revenue | $276.3 million (up 4% YoY) |
| Remaining Performance Obligations | $1.469 billion (up 21% YoY) |
| Billings | $242.3 million (up 27% YoY) |
| GAAP Operating Margin | 2.3% |
| Non-GAAP Operating Margin | 25.3% |
| GAAP EPS | $0.02 |