Box, Inc., a leading Intelligent Content Management (ICM) platform, reported its first-quarter fiscal 2026 earnings, revealing a stable growth trajectory. The company achieved revenue of $276 million, an increase of 4% year-over-year, or 5% in constant currency. Remaining Performance Obligations (RPO) reached $1.469 billion, marking a 21% rise year-over-year, or 17% on a constant currency basis.

In the latest quarter, billings rose significantly by 27% to $242 million, or 17% in constant currency. This strong performance included a positive impact from early renewals accounting for approximately 400 basis points growth. The company also reported gross profit of $215.6 million, yielding a gross margin of 78%, and a non-GAAP gross margin of 80.5%, reflecting a slight year-over-year improvement.

Box’s operating income for the quarter was $6.3 million, representing a GAAP operating margin of 2.3%. The non-GAAP operating margin stood at 25.3%, slightly down from 26.6% in the previous year. Non-GAAP earnings per share (EPS) were reported at $0.30, outperforming expectations by $0.04. This figure includes a negative impact of $0.12 from non-cash deferred tax expenses and a positive foreign exchange impact of $0.01.

The company generated free cash flow of $118 million and cash flow from operations of $127 million, slightly down from the previous year’s results. At the end of the first quarter, Box had approximately $792 million in cash, cash equivalents, restricted cash, and short-term investments.

Looking ahead, Box provided guidance for its second quarter of fiscal 2026, forecasting revenue between $290 million and $291 million, translating to approximately 8% year-over-year growth at the high end. The company anticipates gross margins of around 81% for Q2, alongside non-GAAP operating margins projected at 28%.

For the entirety of fiscal 2026, Box expects revenues in the range of $1.165 billion to $1.170 billion, reflecting a 7% year-over-year increase. The guidance includes an anticipated billings growth of approximately 9% for the fiscal year, bolstered by favorable foreign exchange impacts.

Overall, Box continues to experience robust growth, driven primarily by demand for its AI capabilities and increased upselling of its Enterprise Advanced solution. The company’s ongoing investments reflect confidence in its strategic direction as AI integration becomes central to its offerings.