Box Inc. Recaptures $30 Ahead of Earnings – What To Expect

All eyes in the cloud content management space are fixed on Box Inc. (NYSE: BOX), which is set to release its latest earnings report after market close. The Box Inc stock price has recaptured the $30 level in trading today, up 2.42% into the print.

The past year has been a roller coaster for holders of BOX, with shares peaking at $38.80 in June and dipping 22% from that point into today's price action.

Looking to earnings, the street is expecting EPS to have slowed Y/Y from $0.45 last year, to $0.31 per share this time around. Revenue is however expected to be moving in the right direction, up 8.34% at $298.93million at the midpoint of estimates.

The immediate technical indicators paint a cautious picture. Box's 50-day and 200-day simple moving averages, at $31.99 and $32.40 respectively, both sit comfortably above the current price, suggesting a prevailing bearish trend. This means that, statistically, recent price action has been weaker than historical averages, potentially deterring short-term investors. However, technical analysis is only one piece of the puzzle.

Recent news has been a mixed bag of positive developments and analyst equivocation. On the one hand, Box has been actively forging strategic alliances, most notably with Amazon Web Services (AWS). This multi-year collaboration aims to weave AWS's AI services deep into the Box platform, promising users enhanced capabilities for research, code generation, and workflow automation. This is a clear signal that Box is serious about leveraging AI to enhance its core offerings and attract new customers.

Furthermore, the introduction of Box Shield Pro, an AI-powered security suite, highlights the company's commitment to bolstering its content protection capabilities. Features like the AI Classification Agent and Ransomware Activity Detection are designed to address critical security concerns, a key selling point for enterprise clients increasingly wary of data breaches.

The second quarter of fiscal year 2026 saw Box exceeding expectations, reporting EPS of $0.33 against an anticipated $0.31, and revenue of $294 million, surpassing the forecasted $290.78 million. The company even raised its fiscal 2026 revenue forecast to $1.175 billion, citing growth driven by enterprise-level agreements and AI adoption. CEO Aaron Levie has emphasized the acquisition of significant new clients, including a major law firm and a Fortune 500 hotel chain, underscoring the company's success in penetrating key market segments.

However, not all analysts are singing the same tune. While Citigroup has raised its price target to $40.00 with a “buy” rating, UBS Group downgraded the stock from “buy” to “neutral,” adjusting the target price from $42.00 to $36.00. This divergence in opinion reflects the inherent uncertainty surrounding Box's future growth prospects and its ability to maintain its competitive edge in a crowded cloud storage market.

The next few days will be critical for Box, as the market digests the earnings data and recalibrates its expectations for the company's future. We can expect guidance to play a pivotal role in the direction of the stock from here.