Box Inc (NYSE:BOX) shares climbed on Tuesday following the company’s release of fiscal second-quarter results that surpassed market expectations, coupled with an upward revision of its annual revenue guidance. Investors responded positively, signaling confidence in Box’s AI-focused content platform strategy.
Shares rose nearly 3% in premarket trading Wednesday after Box reported adjusted earnings per share of $0.33 on $294 million in revenue, both exceeding Wall Street estimates. Revenue increased 9% from a year earlier, or 7% on a constant currency basis, surpassing analysts’ forecasts of $290.78 million. CFO Dylan Smith attributed the results to growing demand for the company’s AI solutions: “We delivered a strong second quarter with operating results above our guidance and double-digit short-term RPO growth.”
Box’s remaining performance obligations (RPO) reached $1.5 billion, up 16% year-over-year. Short-term RPO rose 12% to $812 million, while long-term RPO climbed 21% to $664 million, underscoring the company’s robust sales pipeline and enterprise adoption.
The company also reported record non-GAAP gross profit of $239.2 million, representing 81.4% of revenue, and non-GAAP operating income of $84 million, slightly improving from last year. Operating efficiency remained steady, with a non-GAAP operating margin of 28.6%, up from 28.4%.
“Another solid quarter of top-line outperformance was aided by strong bookings momentum from Advanced adoption,” noted analysts at Morgan Stanley.
Bank of America analysts added, “another quarter of strong execution and Enterprise Advanced (EA) adoption is supportive of a positive re-rate as it further validates the EA bull case.” The bank maintained its Buy rating and $40 price target.
CEO Aaron Levie emphasized Box’s strategic position at the intersection of content and AI: “In the second quarter, we continued to see strong momentum with Enterprise Advanced, which delivers intelligent workflow automation, advanced AI, powerful AI agents and secure content management in one plan.”
For the third quarter, Box projected revenue between $298 million and $299 million and adjusted EPS of $0.31–$0.32, broadly in line with expectations. The guidance anticipates 8% year-over-year revenue growth while accounting for foreign exchange headwinds affecting EPS.
Box also raised its full-year FY26 revenue forecast by 0.4% to $1.17–$1.175 billion, slightly above the consensus estimate of $1.168 billion. The non-GAAP EPS guidance remains $1.26–$1.28, assuming minimal FX impact. The company highlighted strong international performance, particularly in Japan, which accounts for 65% of its overseas revenue. Operating margin guidance stayed flat at 28%.
“While FY26 margins remain unchanged and limit positive estimate revisions, investors likely give Box credit for a conservative FY26 revenue guidance,” Morgan Stanley analysts commented.
Alongside financials, Box spotlighted several product updates and partnerships, including AI integrations with OpenAI’s GPT-5, support for AWS Bedrock AgentCore, and expanded collaboration with Salesforce. Executives said these initiatives reinforce Box’s strategy to embed more intelligent features into its platform and drive long-term enterprise adoption.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.