Box, Inc. Q4 FY2026 earnings call

Aaron noted strong Q4 results driven by BoxAI and Enterprise Advanced. FY26 was a defining year with Enterprise Advanced launch, reaching 10% of revenue. Examples of Enterprise Advanced customer wins were shared. Discussed the criticality of enterprise content for AI transformation. In FY27, will deliver AI agent features, enhance Box Extract, launch Box Automate, advance Box Shield, and focus on Box platform APIs. Go-to-market momentum with Enterprise Advanced, and investment in key verticals and partnerships.

In Q4, revenue was $306 million, up 9% YOY (8% constant currency). Fiscal 2026 revenue was $1.18 billion, up 8% YOY with 28% operating margin. Enterprise Advanced customers reached 10% of revenue. Q4 EPS was $0.49. Q4 gross margin was 82.3%, operating income $94 million, operating margin 30.6%. FY26 RPO was $1.7 billion, up 17% YOY. Q4 billings $420 million, up 5% YOY. Net retention rate 104% in Q4, expected 104% in Q1 and 104%-105% in FY27.

Q1 2027 revenue expected ~$304 million (10% YOY, 9% constant currency). Q1 billings growth low single digits with ~530 bps FX headwind. Q1 gross margin ~81.5%, operating margin ~27.5%, EPS ~36 cents. FY27 revenue expected ~$1.275 billion (8% YOY, 9% constant currency). FY27 billings growth roughly in line with revenue, ~100 bps FX headwind. FY27 gross margin ~81.5%, operating margin ~28%-28.5% constant currency. FY27 EPS ~$1.55/$1.58 constant currency. Annual customer conference BoxWorks shifts expenses from Q3 to Q4.

Q: Steve Enders from Citi asked about Gen AI impact on content layer.

A: Aaron discussed software rise, agents needing unstructured data, and need for shared file system.

Q: Rishi Jaluria from RBC asked about enterprise AI adoption.

A: Aaron talked about applied use cases, data extraction, and Box Automate.

Q: Dylan on Q1 billings FX headwind.

A: Explained unusual FX movement a year ago.

Q: Brian Peterson from Raymond James on linearity and geo strength.

A: Linearity positive, commercial business strong, Japan and US regions performing well.

Q: Matt Bullock from Bank of America on NRR.

A: Discussed components of NRR, pricing and net seat expansion.

Q: Lockie Shriner from DA Davidson on Enterprise Advanced adopters.

A: Talked about early adopters and non-EnterprisePlus customers.

Q: Jason Adair from William Blair on SAS narratives.

A: Addressed fear of SAS becoming back-end, seat-based models, and Box's platform role.

Q: Seth Gilbert from UBS on customer ads and margin expansion.

A: Customer ads driven by Enterprise Advanced and platform, margin expansion driven by various efficiencies and investments