Box Inc. reported second-quarter fiscal 2027 revenue of $321 million, up 9% year-over-year or 11% in constant currency, marking the fifth consecutive quarter of accelerating growth. The company also posted billings of $310 million, a 17% increase from the prior year or 16% in constant currency, driven by record second-quarter bookings.
Foreign exchange headwinds trimmed approximately 200 basis points from revenue growth. Remaining performance obligations totaled $1.7 billion at quarter-end, up 15% year-over-year or 17% in constant currency, with long-term RPO increasing 18% or 22% in constant currency. Net retention rose to 106%, up three percentage points from a year earlier, while 69% of revenue came from bundled product offerings, a six-percentage-point increase.
Enterprise customers paying at least $100,000 annually grew 10% year-over-year. Non-GAAP operating margin expanded to 29.4%, up 90 basis points despite a 100-basis-point FX headwind, while non-GAAP gross margin edged down to 81.2% due to a 30-basis-point FX impact and higher Box AI usage and public cloud infrastructure costs.
Free cash flow surged 67% to approximately $60 million, and operating cash flow rose 54% to $71 million. The company repurchased 2.6 million shares for $66.4 million during the quarter, leaving roughly $378 million in remaining buyback capacity as of July 31, 2026. Cash and equivalents totaled approximately $446 million at quarter-end.
For the third quarter ending October 31, 2026, Box expects revenue of about $329 million, representing 9% year-over-year growth or 11% in constant currency, with an estimated 170-basis-point FX headwind. Non-GAAP operating margin is projected at roughly 28.0%, with non-GAAP diluted EPS around $0.39.
Full-year fiscal 2027 guidance was raised by $10 million to approximately $1.29 billion, implying 10% reported growth or 11% in constant currency. The company maintained its non-GAAP operating margin target of about 28.0% and now projects non-GAAP diluted EPS of roughly $1.54. FX is expected to reduce revenue growth by about 100 basis points and trim GAAP and non-GAAP operating margins by 80 basis points each.
Management highlighted growth drivers including Box AI adoption, momentum in the Enterprise Advanced segment, and workflow automation, positioning the company as a secure layer between enterprise content and AI tools.
