| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 48.2x | 17.8x | Bottom tier | |
Growth | 50 | 15.9% | 7.1% | Around median | |
Quality | 98 | 39.8% | 4.5% | Top tier | |
Safety | 69 | 0.5x | 2.6x | Top tier | |
Capital Return | 86 | — | 2.12% | Top tier | |
Momentum | 84 | 2.2% | 2.9% | Top tier | |
Sentiment | 41 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Box provides a platform for managing, storing, securing, and connecting unstructured enterprise content to workflows, including contracts, records, research files, and operational documents. Its revenue model relies on seat licenses and enterprise plans such as Enterprise Advanced, alongside Box AI units and platform API usage; customers on integrated plans accounted for 69% of revenue in the second quarter of fiscal 2027, up from 63% a year earlier.
Revenue for the second quarter of fiscal 2027 was approximately $321 million, up 9% year over year and 11% in constant currency. Adjusted operating profit was $95 million, with an operating margin of 29.4% and year-over-year expansion of 90 basis points, while adjusted gross margin was 81.2% and adjusted earnings per share were $0.40, exceeding the company's guidance of $0.39.
Forward revenue indicators showed stronger momentum than reported revenue growth; billings rose 17% to $310 million, and remaining performance obligations increased 15% to $1.7 billion, with Box expecting to recognize approximately 55% of them during the twelve months following the end of the quarter. Net retention also improved to 106% from 103% a year earlier, while the annual customer churn rate remained at 3% and the number of customers paying at least $100,000 annually grew by 10%.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates BOX as a “Buy,” with an average price target of $37.25 and a wide range of $26 to $50. The average target exceeds the 52-week high of $36.16, reflecting a positive assessment of the momentum in Enterprise Advanced and Box AI. Conversely, the low target of $26 and the wide gap between the ends of the range indicate meaningful concerns about declining gross margin, the expected slowdown in billings, and the costs of AI workloads.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue reached $321 million, up 9% year over year and 11% in constant currency, while adjusted earnings per share reached $0.40 versus guidance of $0.39. Billings rose 17% to $310 million, and remaining performance obligations grew 15% to $1.7 billion. Management attributed the performance to record bookings for the quarter, adoption of Enterprise Advanced, and increased use of Box AI.
Box sells additional AI units and aims to monetize platform API usage volume, alongside upgrading customers to Enterprise Advanced. In the second quarter of fiscal 2027, customers on integrated plans accounted for 69% of revenue, compared with 63% a year earlier. Management said consumption of AI units is growing from a low base and that most activity comes from existing customers but is driving larger expansion deals.
The rate means that spending by the existing customer base increased overall after accounting for expansion, contraction, and customer churn. The rate reached 106% in the second quarter of fiscal 2027, exceeding guidance of 105% and rising from 103% a year earlier, while the annual customer churn rate remained at 3%. Box identified seat expansion, higher pricing per seat, and the strength of Enterprise Advanced as the main drivers, and expects to end fiscal 2027 at 106%.
Box expects revenue of approximately $1.29 billion in fiscal 2027, after raising guidance by $10 million, equivalent to year-over-year growth of 10% and 11% in constant currency. It expects an adjusted gross margin of approximately 80.5%, an adjusted operating margin of approximately 28%, and adjusted earnings per share of approximately $1.54. For the third quarter of fiscal 2027, the company expects revenue of approximately $329 million and adjusted earnings per share of $0.39.
Long-running agent workloads and the processing of millions of documents increase token consumption and computing capacity requirements, raising customer cost sensitivity and putting pressure on the cost of delivering the service. Box also said that limitations in certain components of public cloud providers' infrastructure affected expected efficiency projects during fiscal 2027. This is reflected in the expected decline in adjusted gross margin from 81.2% in the second quarter to approximately 80.5% in the third quarter and approximately 80% in the fourth quarter of fiscal 2027.
Box repurchased 2.6 million shares for approximately $66 million during the second quarter of fiscal 2027. As of July 31, 2026, approximately $378 million remained available under the existing repurchase program. The company expects a weighted average diluted share count of 141 million in fiscal 2027, compared with 149 million shares in the previous year.
