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    BOX
    Earnings call· Apr 2026(Q1 FY27)

    BOX Q1 FY27 earnings call BOX

    May 26, 2026 Source

    Executive summary

    Box Q1 FY27 — Double-Digit Revenue Growth Driven by Enterprise Advanced and AI Solutions

    Box delivered a strong Q1 FY27, achieving double-digit revenue growth for the first time in over three years, fueled by robust adoption of its Enterprise Advanced suite and AI-powered solutions. The company exceeded guidance across key financial metrics, demonstrating accelerating top-line momentum and expanding profitability. Management highlighted the increasing demand for its intelligent content management platform as enterprises seek to securely integrate AI agents with unstructured data, driving continued investment in product innovation and strategic partnerships.

    Highlights

    5

    • Revenue grew 11% year-over-year (10% in constant currency) to $306 million, marking the first double-digit growth rate in over 12 quarters.

    • Billings increased 5% year-over-year (13% in constant currency) to $255 million, exceeding expectations due to strong Q1 bookings.

    • Operating margin expanded to 27.7% (28.1% in constant currency), surpassing guidance of 27.5%.

    • Net retention rate improved to 105%, above guidance of 104% and up from 102% in the prior year period.

    • Diluted EPS reached $0.37, exceeding guidance of $0.36, and free cash flow hit a record $128 million.

    Concerns

    5

    • Q1 billings absorbed an FX headwind that was 260 basis points greater than prior expectations.

    • Q2 revenue guidance includes an expected FX headwind of approximately 170 basis points.

    • Q2 EPS guidance includes an expected FX headwind of approximately $0.03.

    • Full-year FY27 revenue guidance includes an expected FX headwind of approximately 90 basis points, 30 basis points higher than prior expectations.

    • Full-year FY27 billings guidance includes an expected FX headwind of approximately 150 basis points, 50 basis points higher than prior expectations.

    Guidance & targets

    11
    CategoryTargetConfidence
    Q2 FY27 Revenue
    ~$319M
    high materiality
    High
    Q2 FY27 Billings growth
    low double digits
    medium materiality
    High
    Q2 FY27 Gross margin
    81%-81.5%
    medium materiality
    High
    Q2 FY27 Operating margin
    ~28.5%
    high materiality
    High
    Q2 FY27 EPS
    ~$0.39
    high materiality
    High
    FY27 Revenue
    ~$1.28B
    high materiality
    High
    FY27 Billings growth
    roughly in line with revenue growth
    medium materiality
    High
    FY27 Gross margin
    81%-81.5%
    medium materiality
    High
    FY27 Operating margin
    ~28%
    high materiality
    High
    FY27 EPS
    ~$1.56
    high materiality
    High
    FY27 Weighted average diluted shares
    ~139M
    medium materiality
    High

    Operational metrics

    17
    Non-GAAP gross margin
    81.5%up 100 bps YoY
    Q1 FY27
    Non-GAAP operating margin
    27.7%up 240 bps YoY
    Q1 FY27

    Exceeded guidance of 27.5%.

    Cash and investments balance
    $479M
    Q1 FY27

    As of end of Q1 FY27.

    Share repurchase amount executed
    $114M
    Q1 FY27
    Remaining buyback capacity
    $445M
    as of April 30, 2026

    Under current share repurchase plan.

    Customers paying at least $100K annually growth
    11%YoY
    Q1 FY27
    Annualized full churn rate
    3%
    Q1 FY27

    Remained at 3%.

    Enterprise Advanced price premium
    30-40%
    Q1 FY27

    Over Enterprise Plus.

    Q1 Billings FX headwind vs prior expectations
    260 bps
    Q1 FY27

    Greater than prior expectations.

    Q2 Revenue FX headwind
    170 bps
    Q2 FY27

    Expected.

    Q2 Billings FX tailwind
    140 bps
    Q2 FY27

    Expected.

    Q2 EPS FX headwind
    $0.03
    Q2 FY27

    Expected.

    FY27 Revenue FX headwind vs prior expectations
    30 bps
    FY27

    Higher than prior expectations, total expected FX headwind 90 bps.

    FY27 Billings FX headwind vs prior expectations
    50 bps
    FY27

    Higher than prior expectations, total expected FX headwind 150 bps.

    FY27 Revenue increase vs prior guidance (CC)
    $8.5M
    FY27

    Adjusting for currency movements.

    FY27 EPS increase vs prior expectations (CC)
    $0.06
    FY27

    When normalizing for currency movements.

    FY27 Diluted shares reduction vs prior expectations
    2M
    FY27

    Industry KPIs

    8
    MetricValueDetails
    Revenue growth$306MUSD
    Rpo current rpo$1.6BUSD
    Bookings billings$255MUSD
    Customer account count11%%
    Multi product platform attach67%%
    Operating FCF margin rule of 4027.7%%
    Ai product adoption monetizationRamping up
    Net revenue net dollar retention105%%

    Orderbook & backlog

    2
    Remaining Performance Obligations (RPO)$1.6BQ1 FY27 end

    up 12% YoY (16% CC)

    Approximately 55% expected to be recognized over the next 12 months.

    Short-term RPOup 8% YoY (12% CC)Q1 FY27 end

    Product announcements

    4
    ProductTypeDetails
    Box Agentlaunch
    Box Automatelaunch
    MCP app supportexpansion
    AI Model Partnershipsupdate

    Deals & partnerships

    4
    AWS and OpenAIStrategic partnership for agentic document workflows

    Box was named as a partner with both organizations in AWS's official announcement on bringing OpenAI as a model partner.

    Claude for Legal SolutionsKey partner for enterprise content management across legal solutions

    Box was highlighted as a key partner, building on its previous inclusion in the Claude for Financial Services launch.

    VersaFile (partner) and EMEA automotive, engineering and industrials conglomerateExpanded relationship and upgrade to Enterprise Advanced

    Customer upgraded from Business Plus to Enterprise Advanced, added seats, and purchased additional AI units for extract-driven workflows (invoice management, contract life cycle management, e-signature consolidation). This was a partner-led win driven by prebuilt SAP-oriented integrations.

    Slalom (partner) and North American consumer finance companyMulti-thousand-seat Enterprise Advanced deployment

    Customer selected Box as part of a larger digital transformation project anchored on Salesforce Financial Services Cloud, replacing fragmented legacy document management systems, e-signature, and doc generation tools.

    Risks & headwinds

    4
    Foreign currency exchange rate headwindsQ1 FY27, Q2 FY27, FY27

    Q1 billings FX headwind 260 bps greater than prior expectations; Q2 revenue FX headwind ~170 bps; Q2 EPS FX headwind ~$0.03; FY27 revenue FX headwind ~90 bps (30 bps higher than prior); FY27 billings FX headwind ~150 bps (50 bps higher than prior).

    Mitigation: Company is driving efficiencies across the business to offset FX headwinds and maintaining constant currency growth targets.

    Legacy fragmented or on-premises content management infrastructureOngoing

    Discussed_not_quantified

    Mitigation: Box's intelligent content management platform helps organizations move away from fragmented systems towards a unified, secure content layer, enabling full value from AI.

    Securely connecting AI agents to unstructured dataOngoing

    Discussed_not_quantified

    Mitigation: Box provides a platform for securely managing unstructured data for AI agents, offering enterprise-grade security, governance, and permission controls, and building more granular access controls for external agents.

    Malicious use of data or rogue agentsOngoing

    Discussed_not_quantified

    Mitigation: Box is building on its leadership in content security with more granular access controls, safeguards around sensitive data, improved visibility into concerning agent activity, and agent guardrails.

    What to watch in Q2 FY27

    5

    AI unit monetization ramp-up

    next quarter
    CurrentRamping up, early phases
    TargetContinued growth and more significant impact on revenue

    Why it matters

    AI unit consumption is a new growth lever for Box, and its acceleration will indicate the success of AI product adoption and monetization.

    Still, again, the early phases, but seeing good momentum with a lot of the heavy workload use cases like Box Extract that drives pretty heavy AI unit consumption from customers.

    Q&A highlights

    6

    How is Agentic AI adoption translating to customer usage of Box, especially among sophisticated customers, and what are the key use cases?

    Aaron Levie stated that Agentic AI adoption is still early but shows significant upside. Key use cases include the document extraction agent, which is a 'killer app,' and Box Automate for advanced content workflows like client onboarding and RFP processes. He noted increased platform usage via Box APIs for external agents and ramping AI unit monetization, all contributing to Enterprise Advanced revenue momentum.

    “Some of the biggest use cases that we're seeing so far, things like our document extraction agent has absolutely kind of become a killer app for us within enterprises that have large amounts of contracts or invoices or financial documents.”

    asked by Steven Enders · answered by Aaron Levie

    2 min read5 chapters

    Detailed Narrative

    01

    Enterprise Advanced Driving Growth and Value

    Box's Enterprise Advanced suite is a key driver of accelerated growth, demonstrating strong customer adoption and a net retention rate higher than the overall company average of 105%. This premium offering commands a 30-40% price premium over Enterprise Plus, reflecting the recognized value of its intelligent workflow capabilities, including Box Agent, Box Extract, and Box Automate. The suite is central to Box's strategy of enabling enterprises to securely manage unstructured data for AI agents and automate critical workflows.

    02

    AI Innovation and Platform Strategy

    Box is positioning itself as the intelligent content management platform for the 'agentic era,' where AI agents interact with enterprise data. The company announced the general availability of Box Agent, a unified AI engine for content search, analysis, and generation, and Box Automate, a workflow automation solution. Box is also expanding MCP app support and deepening partnerships with leading AI model providers and platforms like OpenAI, Claude, and Gemini, emphasizing choice and flexibility for customers.

    03

    Security and Governance for AI Agents

    As AI agents become major users of enterprise data, Box is enhancing its leadership in content security and governance. The company is developing more granular access controls, safeguards for sensitive data, and improved visibility into agent activity to prevent malicious use or rogue agents. Box aims to serve as a neutral layer, allowing customers to optimize costs and performance by swapping different AI models and harnesses based on workload requirements, providing a strategic advantage in token budgeting.

    04

    Go-to-Market Expansion and Strategic Partnerships

    Box is focused on expanding its go-to-market efforts through a vertical strategy, targeting industries like financial services, life sciences, and legal, to deliver tailored AI solutions. The company is also strengthening its partner ecosystem, collaborating with frontier AI labs, system integrators, and hyperscalers. Recent highlights include being named a partner with AWS and OpenAI for agentic document workflows and being featured in Claude's legal and financial services announcements, leading to partner-led Enterprise Advanced wins.

    05

    Disciplined Capital Allocation

    Box continues its disciplined capital allocation strategy, having expanded its share repurchase program by $500 million. In Q1 FY27, the company repurchased 4.8 million shares for approximately $114 million, with $445 million remaining under the current authorization. This strategy aims to reduce total shares outstanding and enhance long-term shareholder value, complementing the company's focus on accelerating revenue growth and expanding profitability.

    AI-generated summary of the company’s earnings call. Not investment advice.