Box BOX reported fourth-quarter fiscal 2026 non-GAAP earnings of 49 cents per share, which increased 16.7% year over year. The figure surpassed the Zacks Consensus Estimate by 48.48%.
Total revenues of $305.9 million beat the consensus mark by 0.61%. The top line increased 9% year over year on a reported basis and 8% on a constant-currency (cc) basis.
Box shares were up 1.44% at the time of writing this article. In the trailing 12 months, BOX shares dropped 26.1%, underperforming the Zacks Computer and Technology sector’s return of 28.4%.
BOX’s Q4 Metrics in Detail
Billings were $419.8 million in the reported quarter, increasing 5% year over year on a reported basis and 4% on a cc basis. The company generated 66% of its revenues from Suite’s customers in the fourth quarter of fiscal 2026.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
Box’s net retention rate was 104% at the end of the fiscal fourth quarter, up 200 bps year over year.
The company’s remaining performance obligations (RPO) totaled $1.7 billion, up 17% year over year on a reported basis and 16% on a cc basis. This includes $914 million in short-term RPO (up 12% year over year) and $797 million in long-term RPO (up 22% year over year).
BOX’s Q4 Operating Details
Fourth-quarter fiscal 2026 non-GAAP gross margin was 82.3%, which expanded 130 basis points (bps) year over year. Sequentially, gross margin expanded 60 bps.
As a percentage of revenues, non-GAAP sales and marketing were down 200 bps sequentially, whereas non-GAAP research and development expenses and non-GAAP general and administrative expenses were in line sequentially.
On a non-GAAP basis, the company recorded an operating margin of 30.6%, which expanded 330 bps year over year. Sequentially, the operating margin expanded 200 basis points sequentially.
BOX’s Balance Sheet & Cash Flow Details
As of Jan. 31, 2026, cash and cash equivalents were $478 million, down from $730 million as of Oct. 31, 2025.
Box generated $110.3 million in cash from operations in the fiscal fourth quarter, up from $73.1 million in the previous quarter. The company generated a non-GAAP free cash flow of $97.5 million in the reported quarter.
In the fourth quarter of 2026, Box repurchased approximately 4.4 million shares for $126 million. The company had roughly $59 million under its current buyback capacity.
BOX Offers Q1 & FY27 Guidance
For the first quarter of fiscal 2027, Box expects revenues of roughly $304 million, suggesting 10% year-over-year increase and 9% on a cc basis.
The non-GAAP operating margin for the fiscal fourth quarter is expected to be 27.5%. On a non-GAAP basis, BOX expects earnings of 36 cents per share.
For fiscal 2027, BOX expects revenues to be approximately $1.275 billion, indicating a year-over-year increase of 8% on a reported basis and 9% on a cc basis.
The non-GAAP operating margin for fiscal 2027 is expected to be approximately 28%. Non-GAAP earnings are expected to be $1.55 per share.
Zacks Rank & Stocks to Consider
Currently, Box carries a Zacks Rank #3 (Hold).
Advanced Energy Industries AEIS, Digital Turbine APPS and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Advanced Energy Industries sports a Zacks Rank#1 (Strong Buy), whereas Digital Turbine and Amphenol carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine and Amphenol are currently pegged at 19.3%, 41.5% and 21.9%, respectively.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amphenol Corporation (APH): Free Stock Analysis Report
Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report
Box, Inc. (BOX): Free Stock Analysis Report
Digital Turbine, Inc. (APPS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).