Key Highlights

● Fiscal second-quarter revenue rose 9 per cent year over year to $321.1 million.

● Billings rose 17 per cent year over year to $309.5 million.

● GAAP operating margin improved to 10.2 per cent from 7.0 per cent a year earlier.

● Net retention was 106 per cent, with constant-currency growth accelerating for a fifth quarter.

Box (NYSE:BOX) is a US software company whose Intelligent Content Management platform helps organisations store, secure and govern unstructured content, such as contracts, documents and media, and increasingly connects that content to artificial intelligence models and agents. Its Class A common stock trades on the New York Stock Exchange under the symbol BOX. The business sells subscriptions, so its revenue is recurring in nature, and roughly a third of sales arise outside the United States, with a meaningful share denominated in Japanese yen according to the company's earlier disclosures. That currency exposure matters because it can move reported figures independently of customer demand, a point management itself makes in each release. In its first-quarter release, dated 25 May 2026, Box said about 35 per cent of revenue came from outside the US, roughly 70 per cent of that in yen. Management has also promoted products such as Box Agent and Box Automate, which aim to apply AI to customers' stored documents; the commercial contribution of those products has not been separately quantified.

Second-Quarter Fiscal 2027 Results

Box reported second-quarter fiscal 2027 results on 25 August 2026 for the quarter ended 31 July 2026. Revenue was $321.1 million, up 9 per cent year on year, or 11 per cent in constant currency. Billings rose 17 per cent to $309.5 million, and remaining performance obligations, a measure of contracted future revenue, reached $1.7 billion, up 15 per cent. Non-GAAP operating margin was 29.4 per cent against 28.6 per cent a year earlier, while GAAP operating margin improved to 10.2 per cent from 7.0 per cent. Diluted earnings per share were $0.09 on a GAAP basis and $0.40 on a non-GAAP basis, with currency reducing each by $0.04. Net retention was 106 per cent, and operating cash flow was $70.8 million. Chief executive Aaron Levie described the results as exceptional, and the company said constant-currency revenue growth had accelerated for a fifth consecutive quarter.

Capital Return and Guidance

During the quarter Box repurchased about 2.6 million shares for roughly $66 million, leaving about $378 million of authorised capacity at quarter end. Management guidance for the third quarter, which ends on 31 October 2026, is revenue of about $329 million and non-GAAP earnings per share of about $0.39. For the full fiscal year to 31 January 2027 the company guides to revenue of about $1.290 billion, non-GAAP operating margin of about 28 per cent and non-GAAP earnings per share of about $1.54. These are management forecasts, not outcomes, and they assume a currency headwind of roughly 100 basis points for the year. Compared with the May guidance of about $1.280 billion of revenue, the revenue outlook has edged higher, although non-GAAP earnings per share guidance moved slightly lower. Cash and short-term investments at 30 April 2026 totalled about $477 million against non-current debt of $451.6 million, per the first-quarter release. These balance figures predate the July quarter end.

Currency Still Shaves Real Dollars Off Each Quarter

Box's billings and remaining performance obligations both grew faster than revenue, a sign of healthy forward demand, with chief executive Aaron Levie calling the results exceptional and citing five consecutive quarters of accelerating constant-currency growth. Currency movements shaved $0.04 off both GAAP and non-GAAP earnings per share in the quarter, and with roughly a third of revenue generated outside the US, much of it in yen, that translation effect is built into guidance that already assumes a roughly 100-basis-point currency headwind for the full year.