Box 2026 Q2 Earnings Net Income Falls 34.4% Despite Revenue Rise

Box (BOX) reported its Q2 2026 earnings on August 27, 2025, delivering higher-than-expected revenue but falling short in earnings. The company raised its full-year revenue guidance amid strong demand for AI-powered services and enterprise adoption. While the 9% year-over-year revenue growth exceeded forecasts, net income declined sharply due to increased operational costs.

Revenue
Box generated total revenue of $294 million in Q2 2026, marking an 8.9% increase from $270.04 million in the same period a year prior. This growth was driven by continued adoption of AI-powered features and the expansion of Enterprise Advanced contracts, reflecting stronger engagement across key customer segments.

Earnings/Net Income
The company’s earnings per share (EPS) fell 40.0% year-over-year to $0.06, while net income dropped 34.4% to $13.45 million from $20.50 million in Q2 2025. The decline reflects higher operational expenses and investments in AI infrastructure, indicating a shift in priorities toward long-term growth over short-term profitability.

Price Action
On the earnings report date, Box shares fell 3.77% during the latest trading day, though they rebounded slightly with a 2.98% gain over the past week. Month-to-date, the stock has edged lower by 1.25%, reflecting mixed investor sentiment following the earnings release.

Post-Earnings Price Action Review
A strategy of purchasing Box shares after a quarterly revenue increase has shown limited effectiveness over the past three years. The 30-day holding period yielded an 18.82% return, lagging significantly behind the 58.85% benchmark. Although the strategy avoided drawdowns, it generated a low Sharpe ratio of 0.21, suggesting limited risk-adjusted returns and weak performance relative to market benchmarks.

CEO Commentary
CEO Aaron Levie highlighted the company’s 9% revenue growth and emphasized progress in AI-powered metadata extraction and workflow automation. He described AI agents as a key differentiator in automating unstructured data tasks and positioning Box as a central hub for secure AI operations. Levie also announced the appointment of Jeff Newsom as Chief Revenue Officer, underscoring confidence in the go-to-market strategy and AI-first model.

Guidance
Box raised its full-year 2026 revenue guidance to $1.170–$1.175 billion, up $8 million from previous estimates. CFO Dylan Smith outlined Q3 revenue guidance of $298–$299 million and full-year non-GAAP EPS of $1.26–$1.28. Gross margin is expected to remain stable at approximately 81%, with operating margin targeting ~28%. Billings are projected to grow around 9%, factoring in FX impacts and deferred tax expenses.

Additional News
On the same day as the earnings release, Box’s stock rose 3.2% in early trading following the revised 2026 revenue guidance. The company attributed the upward revision to a doubling in Enterprise Advanced contracts and accelerated AI adoption. CEO Levie highlighted new enterprise wins, including a major U.S. law firm and a Fortune 500 hotel chain, signaling strong momentum in key verticals. Box also announced strategic partnerships with OpenAI and Salesforce to enhance its AI ecosystem, reinforcing its commitment to building a robust platform for secure, enterprise-grade AI applications.