Highlights

  • Second quarter fiscal 2027 revenue rose 9% to $321.1 million, with GAAP net income of $19.2 million.
  • Remaining performance obligations reached $1.7 billion, up 15%, and billings grew 17% to $309.5 million.
  • Box repurchased 7.4 million shares for $180.7 million in six months, leaving about $378 million of authorization.
  • Management raised fiscal 2027 revenue guidance by $10 million to about $1.29 billion and expects non-GAAP EPS near $1.54.

Box (NYSE:BOX) shares were trading near their 52-week high at USD 42.20 on October 21, 2026, up 1.07%. The intelligent content management provider launched agent security and governance tools in July, extended its Redwood City headquarters lease on August 21, and reported fiscal second quarter results in late August with a higher full-year revenue outlook.

Based in Redwood City, California, Box was incorporated in Washington in April 2005 and reincorporated in Delaware in March 2008. It describes its Intelligent Content Management platform as a secure system for managing cloud content across its lifecycle, with Box AI built in, sold by subscription under contracts of one to three years or more. The company reports a single segment, and its fiscal year ends January 31.

Revenue Up 9% With Billings and Backlog Growing

Revenue for the three months ended July 31, 2026 was $321.1 million, compared with $294.0 million a year earlier, a gain of 9%, or 11% in constant currency. Gross margin held at 79.1%. GAAP operating income rose to $32.6 million, a 10.2% margin, from $20.6 million and 7.0%. Net income was $19.2 million against $13.4 million, and diluted earnings per share attributable to common stockholders were $0.09 versus $0.05. Over six months, revenue reached $627.1 million and net income $36.9 million.

Billings grew 17% to $309.5 million, helped by about one point of currency. Remaining performance obligations were $1.7 billion, up 15%, or 17% in constant currency. Short-term obligations were $904.7 million and long-term obligations $787.0 million, and about 53% of the total is expected to be recognized within 12 months. On the call, management cited a net retention rate of 106%, Suites customers at 69% of revenue, and non-GAAP operating margin of 29.4%.

The company expanded Box Zones to 10 regions in June and announced general availability of Box Agent and Box Automate. It cautioned that tariffs, a stronger dollar against the Japanese yen, reduced federal spending and geopolitical conflicts could bring customer churn and slower sales cycles.

Cash Flow, Buybacks, Convertible Notes and the Lease

Operating cash flow was $70.8 million for the quarter, up 54%, and $211.0 million for six months. Non-GAAP free cash flow was $59.7 million for the quarter, up 67%, and $187.5 million for six months. Cash, restricted cash and short-term investments totaled $445.6 million.

Box repurchased 2.6 million shares for $66.4 million during the quarter and 7.4 million shares for $180.7 million over six months. Roughly $378 million remained available under the plan. Debt consists of $460.0 million of 1.50% convertible senior notes due September 15, 2029, with a conversion price of about $43.46 per share, and nothing was drawn on its $75.0 million revolving facility. Its $500 million of Series A Convertible Preferred Stock carries rights that rank ahead of common stockholders.

On August 21, Box amended its headquarters lease, extending the term to June 30, 2040 and cutting rentable space from 283,062 to 242,935 square feet from July 1, 2028. Base rent through 2040 is expected to total about $283.3 million.

Third Quarter and Fiscal 2027 Outlook

Management raised its guidance on the August 25 call. For the third quarter of fiscal 2027, it expects revenue near $329 million, roughly 9% growth or 11% in constant currency, non-GAAP operating margin near 28% and non-GAAP EPS near $0.39. For the year ending January 31, 2027, revenue is now expected near $1.29 billion, up from the prior view by $10 million, which equals 10% growth or 11% in constant currency.

Full-year non-GAAP operating margin is still expected near 28%, and non-GAAP EPS near $1.54, including an estimated $0.09 currency headwind. Non-GAAP gross margin is seen near 80.5% for the year, with the fourth quarter near 80%, reflecting limited access to certain infrastructure components at public cloud providers. Management said second-half spending will lean toward the fourth quarter because of BoxWorks in early November and the lease extension. These are company estimates.