Box, Inc. ($BOX) Stock: Q2 2026 Earnings Beat with AI Expansion Driving Growth

TLDR

• Box Inc. shares at $32.25 after Q2 2026 results with EPS of $0.33, topping guidance.
• Revenue grew 9% year-over-year to $294M, supported by AI adoption.
• Operating margin reached 28.6%, gross margin held at 81.4%.
• Company raised FY26 guidance to $1.17B–$1.175B revenue.
• AI partnerships with OpenAI and Anthropic drive customer growth.

Box, Inc. (NYSE: BOX) stock traded at $32.25, up 3.50% as of writing, following the release of its Q2 2026 earnings on August 26, 2025.

Box, Inc. (BOX)

The enterprise cloud content management company reported revenue of $294 million, reflecting a 9% year-over-year increase, supported by solid customer demand and expanding AI-driven offerings.

Earnings per share came in at $0.33, two cents above the high end of guidance and 6.45% higher than consensus estimates. Gross margin stood at 81.4%, while operating margin reached 28.6%, demonstrating Box’s ability to scale efficiently despite ongoing market pressures.

Strong Growth Metrics and Financial Position

Box delivered free cash flow of $36 million and cash flow from operations of $46 million, up 27% from a year earlier. Remaining performance obligations (RPO) climbed 16% year-over-year to $1.5 billion, while net retention rate held steady at 103%.

Billings rose 3% to $265 million, and the company repurchased 1.2 million shares for approximately $40 million during the quarter, highlighting management’s confidence in long-term shareholder value.

AI Expansion and Enterprise Demand

A key growth driver this quarter was Box’s ongoing integration of artificial intelligence into its platform. Nearly 2,000 customers are now paying at least $100,000 annually, an increase of 8% year-over-year. Box’s Enterprise Advanced plan, which leverages AI-powered metadata extraction and intelligent workflow automation, has seen notable adoption.

Partnerships with AI leaders such as OpenAI and Anthropic are enhancing the company’s interoperability and positioning Box as a frontrunner in enterprise content management.

Updated Guidance and Market Outlook

Box raised its FY26 revenue outlook to $1.170 billion–$1.175 billion and non-GAAP EPS guidance to $1.26–$1.28. However, management flagged certain headwinds, including foreign exchange impacts, a $0.58 non-cash deferred tax expense expected in FY26, and Q3 operating margin pressure due to the timing of its annual customer conference.

While the competitive landscape in AI and cloud content management remains challenging, Box has consistently beaten earnings estimates over the last four quarters. Analysts remain cautious, with a consensus Zacks Rank #3 (Hold), suggesting performance in line with the broader market.

Performance vs. S&P 500

Despite strong quarterly results, Box shares have underperformed the market. As of August 27, 2025, YTD return was 2.09%, compared with the S&P 500’s 10.16%. On a five-year basis, Box gained 59.39% versus the S&P 500’s 85.94%, reflecting slower long-term growth.

The sustainability of Box’s stock momentum will depend on continued AI adoption, margin discipline, and execution against elevated FY26 guidance.

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