Key Highlights

  • Box reported second-quarter fiscal 2027 Revenue of $321.1 million, up 9%, or 11% in constant currency.
  • Remaining performance obligations were $1.7 billion, up 15%, and Operating Cash Flow rose 54% to $70.8 million.
  • For fiscal 2027 the company expects revenue of about $1.290 billion, up 10%, with non-GAAP Earnings Per Share of about $1.54.

Latest results

Box Inc. (NYSE:BOX), the content management company, reported second-quarter fiscal 2027 results on 25 August 2026 for the quarter ended 31 July. The company noted that the figures are preliminary and may change when its Form 10-Q is filed.

Revenue was $321.1 million, up 9%, or 11% in constant currency. Remaining performance obligations, a measure of contracted future revenue, were $1.7 billion, up 15%, or 17% in constant currency. Billings were $309.5 million, up 17%. Short-term remaining performance obligations were $904.7 million, up 11%, and long-term obligations were $787.0 million, up 18%, so the longer-dated portion is growing faster.

Profitability and cash flow

GAAP Operating Income was $32.6 million, a Margin of 10.2%, while the non-GAAP Operating Margin was 29.4%. GAAP Diluted Earnings per Share were $0.09, compared with $0.05 a year earlier, and non-GAAP diluted earnings per share were $0.40, against $0.33. The company said each measure was reduced by $0.04 from unfavourable currency movements.

Operating cash flow was $70.8 million, up 54%, and non-GAAP free cash flow was $59.7 million, up 67%. Box repurchased 2.6 million shares for about $66 million in the quarter and had about $378 million of repurchase capacity left at 31 July 2026.

The AI platform argument

The chief executive described Box as the model-neutral platform of choice for enterprises deploying AI agents. That is a management characterisation, not a measured result. The company said it had added support for recent models from Anthropic, Google, OpenAI and Meta, together with new Model Context Protocol integrations with several platforms.

It also introduced agent guardrails, oversight of third-party agent activity, and detection of prompt injection, a type of attack on AI systems. Box Zones, its regional data-residency feature, expanded to Switzerland, Israel and Singapore.

The chief financial officer said Enterprise Advanced, a higher-tier product package, continued to be a key driver of growth, with constant-currency revenue accelerating for a fifth consecutive quarter. A net retention rate of 106% was also cited.

Outlook

For the third quarter, Box guided to revenue of about $329 million, up 9% or 11% in constant currency, with a GAAP operating margin of about 10.0% and a non-GAAP margin of about 28.0%. GAAP earnings per share are guided at about $0.12 and non-GAAP at about $0.39, on roughly 142 million diluted shares.

For fiscal 2027 as a whole, the company expects revenue of about $1.290 billion, up 10% or 11% in constant currency, a GAAP operating margin of about 9.5% and a non-GAAP margin of about 28.0%. GAAP earnings per share are guided at about $0.38 and non-GAAP at about $1.54. These are company expectations, not reported results, and they include currency headwinds. About 35% of revenue is generated outside the United States.

The 11% constant-currency growth guided for the full year matches the rate achieved in the second quarter, so the outlook assumes steady rather than faster growth.

What to watch

The next Quarterly Report will show whether constant-currency growth continues to accelerate and whether non-GAAP operating margin holds near the 28% guided. Other points include the gap between GAAP and non-GAAP profit, the pace of Buybacks against the remaining authorisation, and whether its agent-security features translate into larger customer deals and wider adoption.