Box (BOX) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue reached $306 million, up 9% year-over-year, and FY26 revenue was $1.18 billion, up 8%, driven by strong demand for AI, Suites, and Enterprise Advanced offerings, which now account for 10% of revenue.

• Large customer base expanded, with customers paying over $100,000 annually up 9% year-over-year to 2,090, and significant traction across regulated and commercial verticals.

• Launched new AI-powered products, including Box Extract, Box Shield Pro, and Box AI Agents, and expanded partnerships with leading AI model providers.

• Continued focus on intelligent workflow automation, secure content management, and platform extensibility for AI agents.

• Strong customer wins and expansions across diverse industries, including financial services, healthcare, legal, life sciences, media, public sector, and retail.

Financial highlights

• Q4 operating margin reached 30.6% (non-GAAP), with gross margin at 82.3%; FY26 non-GAAP operating margin was 28.6%, up 330 basis points year-over-year.

• Q4 EPS was $0.49 (non-GAAP), above guidance, benefiting from tax items; FY26 non-GAAP EPS was $1.44.

• Q4 billings were $420 million, up 5% year-over-year; RPO at $1.71 billion, up 17% year-over-year.

• Free cash flow in Q4 was $98 million; FY26 free cash flow was $313 million, up 3% year-over-year.

• Ended Q4 with $480 million in cash and equivalents; repurchased 9.7 million shares in FY26 for $293 million.

Outlook and guidance

• FY27 revenue expected at $1.275 billion, up 8% year-over-year (9% in constant currency); Q1 FY27 revenue guidance is $304 million, up 10% year-over-year.

• FY27 non-GAAP operating margin projected at 28%; Q1 FY27 non-GAAP operating margin expected at 27.5%.

• FY27 non-GAAP EPS guidance is $1.55; Q1 FY27 non-GAAP EPS expected at $0.36.

• Net retention rate expected to remain at 104%-105% through FY27.

• FX headwinds anticipated, especially in Q1, due to prior year USD/JPY movements.