BOX: AI Partnerships On AWS And TCS Will Drive Long-Term Upside

Analysts have slightly lowered their price target on Box by 0.50 dollars to 36.25 dollars, citing a modestly higher discount rate and slightly lower profit margin expectations, partially offset by marginally stronger projected revenue growth.

What's in the News

• Box issued new guidance for the fourth quarter of fiscal 2026, projecting approximately 304 million dollars in revenue, up 9 percent year over year, with a GAAP operating margin of about 11 percent and GAAP EPS of roughly 0.06 dollars, including a negative impact from non cash deferred tax expenses (Corporate Guidance).
• For the full fiscal year 2026, Box expects around 1.175 billion dollars in revenue, up 8 percent year over year, with a GAAP operating margin near 7 percent and GAAP EPS of about 0.19 dollars, again reflecting a headwind from non cash deferred tax expenses (Corporate Guidance).
• Box and Amazon Web Services entered a new multi year strategic collaboration to build Box AI agents on AWS infrastructure, adding integrations with Amazon Bedrock, Amazon Nova Multimodal Embeddings, Amazon Q Developer, and making Box available in AWS Marketplace in early 2026 (Client Announcements).
• Tata Consultancy Services and Box formed a strategic partnership to deliver industry specific, AI driven content solutions for joint customers in sectors such as financial services, healthcare, manufacturing, retail, and the public sector (Client Announcements).
• Box expanded its AI first product portfolio with Box Shield Pro for AI powered content security, and introduced Box Extract and Box Automate to enable agentic data extraction and workflow automation for enterprise customers (Product Related Announcements).

Valuation Changes

• Fair Value Estimate was reduced slightly from 36.75 dollars to 36.25 dollars per share, reflecting a modestly less favorable overall valuation.
• The Discount Rate rose marginally from 8.87 percent to about 8.90 percent, implying a slightly higher perceived risk or required return.
• Revenue Growth increased modestly from roughly 10.26 percent to about 10.47 percent, indicating slightly stronger long term top line expectations.
• The Net Profit Margin edged down from approximately 12.78 percent to about 12.70 percent, signaling a small deterioration in expected profitability.
• The Future P/E declined from about 36.40 times to roughly 34.69 times forward earnings, suggesting a somewhat less demanding valuation multiple.