Box Inc. shares declined 3.7% in extended trading after the company’s full-year earnings guidance for fiscal 2027 fell short of analyst expectations, despite a strong quarterly performance.
The Redwood City-based provider of intelligent content management reported adjusted earnings per share of $0.40 for the second quarter, matching the consensus estimate. Revenue rose 9% year-over-year to $321.1 million, exceeding the $319.33 million forecast. Adjusted operating margin expanded to 29.4% from 28.6% a year earlier, while the net retention rate improved to 106%. Remaining performance obligations grew 15% to $1.7 billion, or 17% on a constant-currency basis.
For the third quarter, Box expects revenue of about $329 million, up 9% from the prior year and above the $324.5 million consensus. Adjusted EPS is projected at $0.39, in line with expectations. The company also flagged foreign exchange headwinds of roughly 170 basis points on revenue.
Full-year fiscal 2027 guidance was revised downward, with adjusted EPS set at $1.54, below the $1.58 consensus. Revenue guidance of $1.29 billion slightly exceeded the $1.279 billion estimate. Box also repurchased 2.6 million shares for approximately $66 million in the quarter, leaving $378 million remaining under its current buyback authorization.
CEO Aaron Levie highlighted the company’s momentum, citing strong adoption of its Enterprise Advanced offering and positioning as a model-neutral platform for AI-driven enterprise workflows.
