Box Inc. Surpasses Q2 Earnings Expectations, Raises FY26 Guidance Amid Robust Analyst Support

Box Inc. reported Q2 earnings of $0.33 per share, exceeding expectations and posting an 8.9% revenue increase YoY to $293.99 million. The company raised its FY26 revenue guidance to $1.17-$1.18 billion, an 8% growth YoY. Analysts' average target price suggests a potential upside of 17.07% from the current trading price of $31.16, and the consensus from 10 brokerages rates the stock as "Outperform."

Box Inc. (BOX) reported its fiscal second-quarter (Q2) earnings, with net income per share of $0.33, surpassing analysts' expectations. The company also reported an 8.9% year-over-year (YoY) revenue increase, reaching $293.99 million. Box raised its full-year 2026 (FY26) revenue guidance to $1.17-$1.18 billion, reflecting an 8% YoY growth. Analysts' average target price suggests a potential upside of 17.07% from the current trading price of $31.16, with the consensus rating the stock as "Outperform" [1].

Box's Q2 earnings per share (EPS) of $0.33 were above the average estimate of $0.31 per share from five analysts surveyed by Zacks Investment Research. The company's revenue of $294 million also exceeded the average forecast of $290.5 million from three analysts. For the current quarter ending in October, Box expects its per-share earnings to range from $0.05 to $0.06. The company expects revenue in the range of $298 million to $299 million for the fiscal third quarter. Box also expects full-year earnings in the range of $1.26 to $1.28 per share, with revenue ranging from $1.17 billion to $1.18 billion [2].

The company's strong performance was driven by its Intelligent Content Management (ICM) platform, which enables enterprises to leverage AI agents to take full advantage of unstructured data. Box reported a record GAAP gross profit of $232.5 million, or 79.1% of revenue, and a record non-GAAP gross profit of $239.2 million, or 81.4% of revenue. The company also reported a GAAP operating margin of 7.0% and a non-GAAP operating margin of 28.6% [2].

Box's stock has declined nearly 1% since the beginning of the year. However, in the final minutes of trading on Tuesday, shares hit $31.33, a climb of slightly more than 9% in the last 12 months. The company's strong Q2 performance and raised FY26 revenue guidance suggest a positive outlook for Box's stock, with analysts expecting a potential upside of 17.07% from the current trading price of $31.16.

References:
[1] https://finance.yahoo.com/news/box-fiscal-q2-earnings-snapshot-201724946.html
[2] https://finance.yahoo.com/news/box-reports-second-quarter-fiscal-200500381.html