Box, Inc.

Q1 revenue was $306 million, up 11% year over year and 10% in constant currency. Q1 EPS was $0.37 versus guidance of $0.36. Gross margin was 81.5%, up 100 basis points year over year. Operating income was $85 million and operating margin was 27.7%, up 240 basis points year over year, or 28.1% in constant currency. Billings were $255 million, up 5% year over year or 13% in constant currency, and RPO was $1.6 billion, up 12% year over year or 16% in constant currency. Free cash flow was a record $128 million, and cash from operations was $140 million. For Q2, Box guided to revenue of approximately $319 million, gross margin of 81% to 81.5%, operating margin of about 28.5%, and EPS of approximately $0.39. For FY27, Box raised revenue guidance by $5 million to approximately $1.28 billion, expects billings growth roughly in line with revenue growth, gross margin of 81% to 81.5%, operating margin of approximately 28%, and EPS of approximately $1.56, or $1.64 in constant currency.

Aaron Levie framed the quarter as proof that Box is becoming the platform for secure enterprise content in an AI-agent world. He emphasized that customers want to connect AI to unstructured data, and said Box is building the security, governance, APIs, and workflow automation needed to make that possible. His tone was upbeat and strategic, with repeated references to a large, still-early opportunity and strong momentum from Enterprise Advanced, Box Agent, Box Extract, and Box Automate.

Dylan Smith highlighted record Q1 bookings, fourth straight quarter of accelerating revenue growth, and a return to double-digit growth for the first time since fiscal 2023. He pointed to the core financial metrics: revenue of $306 million, gross margin of 81.5%, operating margin of 27.7%, EPS of $0.37, record free cash flow of $128 million, and operating cash flow of $140 million. He also noted RPO of $1.6 billion, net retention of 105%, and active capital return, including $114 million spent repurchasing 4.8 million shares, with about $445 million of buyback capacity remaining as of April 30, 2026.

Analysts focused on how quickly agentic AI is translating into usage and revenue, what is driving the better net retention, whether AI credits and MCP access can become meaningful growth drivers, and whether Box should invest more aggressively. Management said adoption is still early, but extraction, automation, API usage, and AI unit consumption are already contributing, while Enterprise Advanced is the main driver of the 105% net retention rate. They also said the guide raise mainly reflects momentum already visible plus additional pipeline and that billings strength was driven by bookings rather than early renewals or unusual payment behavior.