- Revenue Growth: FY 2026 revenue reached $1.18 billion, up 8% year-over-year, with Q4 revenue of $306 million, a 9% YoY increase.
- Enterprise Advanced Momentum: 10% of revenue now comes from Enterprise Advanced, with pricing uplifts of 30–40% over Enterprise Plus driving growth.
- Operating Margin Expansion: FY 2026 operating margins hit 28%, up 50 basis points YoY, with Q1 2027 guidance at 27.5% (220 bps improvement YoY).
- Free Cash Flow Strength: Q4 free cash flow was $98 million, up 7% YoY, and FY 2026 free cash flow totaled $313 million, a 3% increase.
- AI-Driven Innovation: Box plans to launch next-gen AI agents in FY 2027, enhancing Box Automate and Box Extract for advanced content workflows and unstructured data processing.
Enterprise Advanced Driving Growth
Enterprise Advanced customers have reached 10% of revenue, and the company is excited about the early traction and continued momentum. The pricing uplift for Enterprise Advanced is expected to remain around 30-40% relative to Enterprise Plus, with the overall contract value increase driven by the monetization of platform components and new use cases. As Aaron Levie, Box Co-Founder and CEO, noted, "Nearly every enterprise leader is looking to transform how their company operates with AI, and they quickly find that for AI agents to be effective in a workflow, they need critical context about their business."
AI Adoption and Innovation
The company is seeing strong adoption of applied AI use cases, particularly in regulated industries, and expects this trend to continue. Box is innovating and delivering more value to customers, with improvements in AI models and agentic abilities. Customers are becoming more comfortable automating content workflows as these models improve, and Box is seeing a trajectory of increased adoption.
Valuation and Outlook
With a P/E Ratio of 37.21 and P/S Ratio of 3.21, the market is pricing in significant growth expectations for Box. Analysts estimate next year's revenue growth at 8.5%. The company's strong financial performance, driven by the success of Enterprise Advanced and growth in AI adoption, positions it well for continued growth. The expected operating margin improvement, driven by efficiencies in sales and marketing and R&D, will likely contribute to further growth.
Margin Expansion and Investment
The company can improve operating margin with incremental improvement in constant currency. The investment phase is expected to take shape next year, with efficiencies in sales and marketing and R&D that can percolate through to drive margin expansion. The opportunities and efficiencies being driven, including the use of AI, will help achieve the next several points of growth.