Box 2026 Q3 Earnings Revenue Beats Guidance, AI-Driven Growth Cited

Box Inc. (BOX) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with revenue rising 9.1% to $301.11 million and EPS stable at $0.05. The results exceeded guidance, and management raised full-year revenue and EPS targets, citing strong demand for AI-powered solutions.

Revenue

Total revenue increased by 9.1% year-over-year to $301.11 million, surpassing the $298.4 million forecast. The growth was driven by pricing and seat expansion, with a net retention rate of 104%. Billings rose 12% to $296 million, reflecting robust customer adoption of AI-driven workflows.

Earnings/Net Income

Net income declined 6.4% to $12.06 million, while EPS remained flat at $0.05. Adjusted earnings of $0.31 met Wall Street expectations, though net income fell short of the prior year. Despite in-line EPS, the decline in net income highlights operational challenges.

Post-Earnings Price Action Review

The strategy of buying Box shares on the earnings release date and selling in 30 days over three years underperformed, with a CAGR of -5.88% and total return of -15.33%. The Sharpe ratio of -0.33 and minimal drawdowns underscored risk-averse performance, though moderate volatility (17.78%) limited gains during market upswings.

CEO Commentary

CEO Aaron Levie emphasized AI-driven growth, including partnerships with AWS and Tata Consultancy Services, and highlighted the Box AI platform’s role in automating workflows. He expressed optimism about AI’s potential to unlock new use cases and accelerate Enterprise Advanced adoption.

Guidance

Box projected Q4 2026 revenue of $304 million and adjusted EPS of $0.33, with full-year revenue guidance raised to $1.18 billion. The company expects AI initiatives and verticalized solutions to drive long-term growth.

Additional News

Box expanded its AWS partnership with a multi-year AI collaboration and announced integrations with Anthropic and Mistral AI. Raymond James lowered its price target to $38 from $42, citing valuation concerns despite strong Q3 results. The company also reported progress in the federal sector, with FedRAMP High authorization enabling more government contracts.

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