Box (BOX) Down 10.2% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Box (BOX). Shares have lost about 10.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Box due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

BOX Q4 Earnings Surpass Estimates, Revenues Up Y/Y

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’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’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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 91.67% due to these changes.

VGM Scores

At this time, Box has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Box belongs to the Zacks Internet - Software industry. Another stock from the same industry, MongoDB (MDB), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended January 2026.

MongoDB reported revenues of $695.07 million in the last reported quarter, representing a year-over-year change of +26.7%. EPS of $1.65 for the same period compares with $1.28 a year ago.

For the current quarter, MongoDB is expected to post earnings of $1.17 per share, indicating a change of +17% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for MongoDB. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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