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Apr 30
Box Q1 2026 Earnings Report
Box posted modest revenue growth and maintained profitability in Q1 FY26 despite a drop in net income.
Key Takeaways
Box delivered solid results for Q1 FY26 with revenue of $276.3 million and positive net income, while continuing to invest in AI innovation and strategic partnerships.
Revenue reached $276.3 million, representing 4% YoY growth.
GAAP net income dropped to $3.5 million from $11.5 million last year.
Non-GAAP EPS was $0.30, impacted by non-cash deferred tax expenses.
The company expanded AI capabilities and launched new strategic integrations, including with IBM and Google.
Box
Box
Forward Guidance
Box expects improved margins and continued growth in FY26, driven by AI innovation and global expansion, despite FX and tax headwinds.
Positive Outlook
- FY26 revenue expected to reach up to $1.17 billion
- Non-GAAP operating margin expected to remain strong at 28%
- GAAP EPS to rise to $0.16-$0.20 for the full year
- New product launches and AI integrations expected to drive growth
- Strategic partnerships with IBM and Google to expand reach
Challenges Ahead
- GAAP EPS includes a negative $0.10 impact from deferred tax expenses
- Non-GAAP EPS impacted by $0.49 in deferred tax expenses
- About one-third of revenue is subject to FX volatility, primarily Japanese Yen
- Net income guidance reflects continuing investment-related costs
- Lower free cash flow compared to the previous year