A month has gone by since the last earnings report for Box (BOX). Shares have added about 3.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Box due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
BOX Q1 Earnings Surpass Estimates, Revenues Up Y/Y
Box reported first-quarter fiscal 2027 non-GAAP earnings of 37 cents per share, which increased 23.3% year over year. The figure surpassed the Zacks Consensus Estimate by 2.78%.
Revenues of $305.9 million increased 10.7% from the year-ago quarter and edged past the consensus mark by 0.64%.
BOX’s Q1 Metrics in Detail
Billings were $255.4 million in the reported quarter, up 5% year over year on a reported basis and 13% on a cc basis. Management attributed the strength to robust bookings momentum rather than early renewals or unusual payment behavior. A key contributor was the continued mix shift toward Suites. Suites customers accounted for 67% of revenues, up from 61% a year ago, underscoring the company’s progress in consolidating demand around higher-value bundles that incorporate workflow and AI capabilities.
The quarter reflected stronger adoption of Enterprise Advanced and broader Box AI usage. Net retention rate improved to 105%, indicating healthier expansion within the installed base, as customers leaned further into intelligent workflow use cases.
Customer quality also strengthened. Customers paying at least $100,000 annually grew 11% year over year, supporting the view that enterprise-oriented deployments remain a meaningful driver of Box’s growth profile.
The company’s remaining performance obligations (RPO) totaled $1.6 billion, up 12% year over year on a reported basis and 16% on a cc basis, reflecting the benefit of strong contract durations and sustained customer commitments. This includes $880.2 million in short-term RPO (up 8% on a reported basis and 12% on a constant currency basis) and $761.7 million in long-term RPO (up 16% year over year on a reported basis and 22% on cc basis).
BOX’s Q1 Operating Details
Profitability expanded alongside the stronger top-line trajectory. The non-GAAP gross margin for first-quarter fiscal 2027 improved to 81.5% from 80.5% in the year-ago period, reflecting continued scale benefits in the model.
Operating leverage also showed up in operating profitability. Non-GAAP operating margin rose to 27.7% from 25.3% a year earlier, pointing to a better balance between growth investments and expense discipline.
BOX’s Balance Sheet & Cash Flow Details
As of April 30, 2026, cash and cash equivalents, restricted cash and short-term investments were about $479 million, up from $478 million as of Jan.31, 2026.
Box generated $140.2 million in net cash from operating activities in the fiscal first quarter, up from $110.3 million in the previous quarter. The company generated a non-GAAP free cash flow of $127.7 in the reported quarter, up 10% and 8% year over year, respectively.
Capital returns accelerated. The company repurchased about 4.8 million shares for roughly $114 million during the quarter and ended April 30, 2026, with approximately $445 million remaining under its current buyback authorization.
BOX Offers Q2 & FY27 Guidance
Management’s outlook embedded continued momentum in intelligent workflows and Enterprise Advanced. For the second quarter of fiscal 2027, the company expects revenues of about $319 million, representing approximately 9% year-over-year growth or 10% growth in constant currency. Non-GAAP diluted earnings of roughly 39 cents per share, with FX expected to be a headwind to both metrics.
For fiscal 2027, BOX raised its revenue view to approximately $1.28 billion and guided to non-GAAP diluted earnings of about $1.56 per share. The company also maintained a non-GAAP operating margin outlook at roughly 28%, reflecting confidence in sustaining profitable growth while investing in AI-driven product initiatives such as Box Agent and Box Automate.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 6.25% due to these changes.
VGM Scores
At this time, Box has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).