Box Stock Surges on Revenue Upgrade and AI Partnerships

Box Inc.'s stock rose 3.2% as the company upgraded its 2026 revenue forecast to $1.175 billion, driven by a doubling of enterprise-level agreements and increased AI adoption. CEO Aaron Levie cited 9% revenue growth and significant new clients, including a major law firm and a Fortune 500 hotel chain. Box also announced partnerships with OpenAI and Salesforce to bolster its AI ecosystem.

Box Inc. (NYSE: BOX) reported a strong second quarter, with the company upgrading its 2026 revenue forecast to $1.175 billion, an increase of $5 million from its previous guidance. The upgrade was driven by a doubling of enterprise-level agreements and increased adoption of AI capabilities. The stock price rose by 3.2% following the announcement.

Revenue for the second quarter was $294 million, representing a 9% year-over-year increase. The company also reported a 16% increase in remaining performance obligations (RPO), reaching $1.5 billion. The operating margin for the quarter was 28.6%, and earnings per share (EPS) were $0.33, $0.02 above the high end of the company's guidance.

CEO Aaron Levie highlighted the strong performance, stating, "We are incredibly excited about the opportunity ahead of us." He cited 9% revenue growth and significant new clients, including a major law firm and a Fortune 500 hotel chain, leveraging Box’s AI capabilities for workflow automation and data extraction. The company also announced partnerships with OpenAI and Salesforce to bolster its AI ecosystem.

The company's gross margin for the quarter was 81.4%, and free cash flow was $36 million. Box repurchased 1.2 million shares for approximately $40 million. The company's net retention rate improved to 103% from 102% in the first quarter.

However, the company faces challenges with foreign currency exchange rates and a non-cash deferred tax expense headwind of $0.58 in FY26, affecting non-GAAP EPS. The operating margin guidance for Q3 is expected to be lower than the previous year due to the timing of the annual customer conference and other expenses.

Despite the challenges, the company remains confident in its AI-driven growth strategy. The company expects Q3 revenue to be in the range of $298 million to $299 million, representing approximately 8% year-over-year growth. The company also expects Q3 billings to grow by approximately 10%, with a gross margin of approximately 81% and non-GAAP operating margin at approximately 28%.

References:
[1] https://ca.finance.yahoo.com/news/box-inc-box-q2-2026-070456581.html
[2] https://seekingalpha.com/news/4489359-box-raises-fy-2026-revenue-guidance-to-1_175b-as-enterprise-advanced-deals-double-and-ai