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.

• Enterprise Advanced customers now represent 10% of revenue, with significant traction across regulated and enterprise verticals.

• Large customer base expanded, with customers paying over $100,000 annually up 9% year-over-year to 2,090.

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

• Continued focus on applied AI use cases, workflow automation, and secure content management for enterprises.

Financial highlights

• Q4 operating margin reached 30.6% non-GAAP (GAAP 10.2%), with gross margin at 82.3% non-GAAP (GAAP 80.1%), both exceeding guidance.

• FY26 non-GAAP operating margin was 28.3%, up 50 basis points year-over-year; record free cash flow of $313 million, up 3% year-over-year.

• Q4 EPS was $0.49 non-GAAP, above guidance, benefiting from tax items; Q4 GAAP EPS was $0.47.

• Q4 billings were $420 million, up 5% year-over-year; net retention rate improved to 104%.

• Remaining performance obligations (RPO) at $1.71 billion, up 17% year-over-year.

Outlook and guidance

• FY27 revenue expected at $1.275 billion, up 8% year-over-year (9% in constant currency).

• FY27 non-GAAP operating margin projected at 28%; GAAP operating margin at 9.5%.

• FY27 non-GAAP EPS expected at $1.55; GAAP EPS at $0.45; weighted average diluted shares at 141 million.

• Q1 FY27 revenue guidance of $304 million, up 10% year-over-year; Q1 non-GAAP EPS of $0.36.

• Guidance reflects FX headwinds and continued investment in go-to-market and product innovation.