What Happened?
Shares of cloud content storage and management platform Box (NYSE: BOX) jumped 17.6% in the morning session after the company reported a "beat and raise" quarter (fiscal Q1 2026).
Box blew past analysts' sales and billings expectations, and its EPS guidance for next quarter trumped Wall Street's estimates.
Notably, the company raised full-year sales and earnings guidance off the back of the strong first quarter beat. It also called out the early success of its new Enterprise Advanced Suite, which bundles AI-powered tools for managing and automating content workflows, an area with growing enterprise interest.
Zooming out, we think this was a good print with some key areas of upside.
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What The Market Is Telling Us
Box’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Box and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 10% on the news that the company reported weak fourth quarter results: Revenue was just in line and operating profit came up short.
Looking ahead, next quarter's revenue guidance missed by a wide margin, which wasn't exactly what investors wanted to hear. There's buzz around the company's AI investments, but the results and guidance indicated it might be too soon to see meaningful returns. Overall, this quarter could have been better.
Box is up 17.7% since the beginning of the year, and at $36.88 per share, has set a new 52-week high. Investors who bought $1,000 worth of Box’s shares 5 years ago would now be looking at an investment worth $1,892.
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