Box chief financial officer Dylan Smith said the company delivered its fifth consecutive quarter of accelerating revenue growth at Citi's 2026 Global TMT Conference on September 9, attributing the momentum to uptake of its premium product tier and growing AI workflows among enterprise customers.
Enterprise Advanced, introduced roughly 18 months before the conference, is delivering a 30% to 40% price-per-user uplift and serves as the primary growth driver, Smith said. Customers who have adopted the tier show stronger net retention than those who have not. Box estimates its average customer footprint has about six times the current seat expansion opportunity, creating room for further uptake.
More than a dozen Fortune 500 companies now use Box wall-to-wall, Smith noted. The company also flagged a significant legacy displacement opportunity, particularly against incumbents such as OpenText, as customers move workloads and free up dollars for additional Box investment.
On AI, Smith described customer behavior around an "extract plus automate" framework: software pulls structured data and metadata from unstructured content—for use cases including contract lifecycle management, loan origination and client onboarding—and then automates downstream workflows such as compliance routing, task assignment and customer notifications. Box tracks token consumption through its AI Units framework regardless of whether agents are built internally or by third parties, including providers such as OpenAI and Anthropic.
Remaining performance obligation grew 14% on a constant-currency basis, ahead of revenue growth. Box maintained its medium-term revenue growth guidance of 10% to 15%, currently sitting at the lower end with room to move higher over time. Consumption revenue, currently about 5% of total, is expected to exceed 10% over three to five years.
Operating margin expanded more than one percentage point in the current year, with a medium-term target of high single-digit to 10 percentage points of expansion. Gross profit margin was 79.55%, according to InvestingPro data. Gross margin headwinds from public cloud provider capacity constraints and AI-related costs are expected to persist through 2025 before easing as hardware supply and newer infrastructure improve.
Box closed a regular session at $34.49, up 0.54%, and rose to $34.64 in after-hours trading. The stock has delivered a 35.6% return over the previous six months and trades within a 52-week range of $21.34 to $36.34. Market capitalization stands at $4.71 billion, with last-twelve-months revenue of $1.23 billion and a free cash flow yield of 8%.
