On March 3, 2026, Box, Inc. (NYSE:BOX), a leader in Intelligent Content Management (ICM), announced its preliminary financial results for the fourth quarter and fiscal year ending January 31, 2026. The company showcased remarkable growth, driven by its innovative product offerings and strategic initiatives.

1. A Defining Year for Box

Aaron Levie, co-founder and CEO of Box, expressed optimism about the company's future. “Fiscal 2026 was a defining year for Box, as we executed on the launch of Enterprise Advanced, delivering customers our most powerful capabilities around advanced AI and intelligent workflow automation, all anchored in a secure platform,” he stated. Notably, Enterprise Advanced customers currently contribute to 10% of the company's revenue, indicating a robust demand for AI-driven solutions in enterprise content management.

Dylan Smith, co-founder and CFO, echoed Levie's sentiments, emphasizing the company's successful strategy, which significantly improved the net retention rate. “Looking ahead, we will continue to execute on our robust product roadmap and invest in strategic go-to-market initiatives, leading to accelerated revenue growth in FY27 and beyond,” Smith noted.

2. Fiscal Fourth Quarter Financial Highlights

Box's fourth quarter results demonstrated substantial growth across various key financial metrics:

Record Revenue: $305.9 million, representing a 9% increase year-over-year and an 8% increase on a constant currency basis.

Remaining Performance Obligations (RPO): Reached a record of $1.711 billion, up 17%, or 16% on a constant currency basis. This includes a short-term RPO of $913.7 million (up 12%) and a long-term RPO of $797.0 million (up 22%).

Billings: Also set a record at $419.8 million, reflecting a 5% increase, or 4% on a constant currency basis.

Gross Profit: Achieved a record GAAP gross profit of $245.0 million, equating to 80.1% of revenue, up from 79.0% the previous year. Non-GAAP gross profit reached $251.8 million, or 82.3% of revenue, up from 81.0%.

Operating Income: Box reported a GAAP operating income of $31.2 million (10.2% of revenue), up from $17.9 million (6.4% of revenue) last year. Non-GAAP operating income was $93.7 million, or 30.6% of revenue, up from 27.3%.

Earnings Per Share: GAAP diluted EPS was $0.47, including a $0.01 benefit from favorable foreign exchange rates and $0.43 from various net tax benefits. This compares to $1.12 in the prior year, which included a net tax benefit of $1.04. Non-GAAP diluted EPS was $0.49, up from $0.42.

3. Fiscal Year 2026 Financial Highlights

For the fiscal year, Box reported significant milestones:

Record Revenue: Total revenue reached $1.177 billion, an 8% increase year-over-year or 7% on a constant currency basis.

Record Billings: Box achieved $1.223 billion in billings, marking a 10% year-over-year increase, or 9% on a constant currency basis.

Gross Profit: GAAP gross profit amounted to $932.6 million (79.2% of revenue), an increase from $862.0 million (79.1%). Non-GAAP gross profit was $959.4 million, representing 81.5% of revenue, up from 81.2%.

Operating Income: The company recorded a GAAP operating income of $83.2 million (7.1% of revenue), slightly down from 7.3% the previous year. Non-GAAP operating income reached $333.6 million (28.3% of revenue), up from 27.9%.

Earnings Per Share: GAAP diluted EPS was $0.58, which included a $0.03 benefit from favorable foreign exchange rates and $0.42 from net tax benefits. This is a decrease from $1.36 in the prior year. Non-GAAP diluted EPS was $1.44, down from $1.71.

Net Cash from Operating Activities: Totaled $356.5 million, up 7%.

Non-GAAP Free Cash Flow: Reached a record $312.9 million, reflecting a 3% increase.

4. Looking Ahead

As Box embarks on fiscal year 2027, the company is well-positioned to leverage its strong financial performance and innovative product developments. The emphasis on AI and automation in content management is expected to resonate with existing and potential customers, further driving growth. Both Levie and Smith underscored their commitment to executing their strategic roadmap and enhancing market position as they move forward.

With a strong foundation laid in fiscal 2026, Box is poised for what could be another transformative year in the evolving landscape of content management.

Original press release