BOX Q2 Earnings Beat Estimates, Raises Guidance on AI-Powered Growth

Box reported Q2 revenue of $294 million, up 8.9% YoY, beating analyst estimates. The company expects Q3 revenue of $298.5 million and raised its full-year guidance. Management attributed the growth to accelerating adoption of AI-driven plans and larger deal sizes.

Box Inc. (NYSE: BOX) reported its second-quarter (Q2) fiscal 2026 financial results, which showed a significant increase in revenue and earnings, outperforming analyst expectations. The company's Q2 revenue rose to $294 million, marking an 8.9% year-over-year (YoY) increase, and exceeding the consensus estimate of $290.80 million [1]. Box's adjusted earnings per share (EPS) for Q2 FY2026 came in at $0.33, which was 6.4% above the consensus estimate of $0.31 [1].

The company's strong performance was driven by robust demand for its Intelligent Content Management platform, which leverages AI for unstructured data, and its Enterprise Advanced offerings, which provide intelligent workflow automation and secure content management [1]. Additionally, the company reported a 16% increase in remaining performance obligations (RPO) to $1.5 billion, reflecting strong customer adoption of its AI-driven solutions [3].

Box also provided updated guidance for the remainder of the fiscal year. The company expects Q3 FY2026 revenue to be between $298 million and $299 million, representing an 8% YoY increase, and full-year revenue to be between $1.170 billion and $1.175 billion [1]. For full-year adjusted EPS, the company forecasted a range of $1.26 to $1.28 [1].

Box's Q2 performance was bolstered by key strategic initiatives, including the launch of new AI features, partnerships with leading organizations, and the general availability of Box Hubs, which enhance content organization and governance [2]. The company also announced support for advanced AI models such as OpenAI’s GPT-5, Anthropic’s Claude 4, and xAI’s Grok 4, further solidifying its position in the AI-driven content management space [2].

Analysts remain optimistic about Box's prospects, with a current average rating of "buy" and a median 12-month price target of $39.50, approximately 20.5% above its August 25 closing price of $31.42 [1]. The stock is currently trading at 22 times the next 12-month earnings, reflecting investor confidence in the company's growth trajectory [1].

Despite strong Q2 results, Box faces challenges such as foreign currency exchange rate impacts and a non-cash deferred tax expense headwind of $0.58 in FY26, affecting non-GAAP EPS. The company anticipates a lower operating margin for Q3 due to the timing of its annual customer conference and other expenses. However, Box remains optimistic about its long-term prospects and continues to invest in AI capabilities to stay competitive in the enterprise content management market.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX4BD3B8:0-content-cloud-firm-box-q2-revenue-beats-estimates/
[2] https://www.morningstar.com/news/business-wire/20250825146596/box-reports-second-quarter-fiscal-2026-financial-results
[3] https://www.ainvest.com/news/box-box-q2-2026-performance-surpasses-expectations-9-revenue-growth-2508/