Box stock surged Wednesday after the cloud-based content management company's fiscal first quarter earnings and sales beat expectations. The company also raised its sales outlook for the rest of its fiscal year and said its seeing momentum for AI applications built into its software tools.
The Redwood City, Calif.-based Box said late Tuesday that it earned an adjusted 30 cents per share on sales of $276 million for its April-ended quarter. Analysts polled by FactSet projected Box would post adjusted earnings of 26 cents per share on sales of $275 million.
Adjusted earnings declined 23% while sales increased 4%. The earnings included a negative impact of 12 cents per share from the recognition of "noncash deferred tax expenses," Box said.
For the current July-ending quarter, Box guided for sales of $290.5 million at the midpoint of its range. That beat the $284 million in sales analysts were previously projecting, according to FactSet. Box also raised its fiscal year sales guidance to $1.168 billion at the midpoint of its range, compared to a previous $1.158 billion the company gave in March. The company's fiscal year ends with January 2026.
The quarterly sales guidance includes a boost from foreign-exchange of about 2.2%. Box collects a third of its revenue outside the U.S., the company noted, about 65% of which is in Japanese Yen.
But the software company also said AI is helping boost its products. Chief Executive Aaron Levie said in a news release that AI is "revolutionizing work and business."
Box earlier this month revealed an AI Agents tools it said could be used for "search, Deep Research, and enhanced data extraction" within Box's storage and collaboration tools.
On the stock market today, Box stock gained 17% to close at 36.85. That marked a record high close for the stock, according to MarketSurge.
Box Stock: Analyst Sees AI Momentum
Founded in 2005, Box says its data-sharing tools are used by 68% of the Fortune 500.
Box's overall billings grew 27% year-over-year to $242.3 million in the April-ended quarter. The company earlier this year rolled out an "Enterprise Advanced" subscription plan that offers a range of AI tools along with its content management software.
Analysts with William Blair reiterated an outperform call for Box stock after its Q1 report Tuesday.
"We believe that the momentum behind Box AI/Enterprise Advanced should be a meaningful growth catalyst as the company positions itself to capitalize on customer demand for AI-driven intelligent content management and workflow automation," William Blair analyst Jason Ader wrote to clients.
Box stock gained 25% last year, helped by the company's AI push and a rally late in 2024. With Wednesday's rally, shares for Box are ahead about 47% compared to 12 months ago.
Coming into the report, Box stock had a weak IBD Composite Rating of 62 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Box's IBD Relative Strength Rating was 69 out of 99.
