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On Wednesday, JPMorgan analyst Pinjalim Bora adjusted the price target for Box, Inc. (NYSE:BOX) stock, lowering it to $37.00 from the previous $38.00 while keeping an Overweight rating on the shares. Currently trading at $33.47 with a market capitalization of $4.81 billion, Box shares are trading close to their 52-week high of $35.74. According to InvestingPro analysis, the stock is fairly valued at current levels. The adjustment comes after Box, Inc. reported a strong end to the fiscal year, with key performance metrics surpassing both the company’s guidance and consensus expectations.
Box, Inc. experienced a solid bookings cadence and a higher volume of early renewals during the quarter. Calculated billings grew by 7% year-over-year in constant currency, an acceleration from the last quarter and above the low-single-digit guidance. The company maintains impressive gross profit margins of 78.4%, demonstrating strong operational efficiency. Remaining performance obligations (RPO) also saw a 14% year-over-year increase in constant currency, maintaining the steady growth from the previous quarter. InvestingPro data reveals the company’s overall financial health score is "GREAT," supported by strong cash flows and moderate debt levels.
Despite facing a larger incremental foreign exchange headwind, Box’s revenue was essentially in line with expectations, and pro forma earnings per share were higher than anticipated. The dollar-based net retention rate (DBNRR) remained consistent at 102% for the third consecutive quarter, while gross retention was robust at 3% for the eleventh straight quarter.
The company also highlighted strong momentum around its new Enterprise Advanced SKU, which closed several deals in the fourth quarter. This new SKU, which became generally available at the end of the quarter, has led to a 20-40% annual contract value uplift compared to Enterprise Plus deals.
Looking ahead, Box anticipates an acceleration in billings for FY26. However, the revenue guidance suggests a deceleration, aligning with street expectations, and the pro forma operating margin guidance is set lower as the company plans to invest strategically in go-to-market initiatives to leverage the upcoming AI-related opportunities.
In summary, JPMorgan views the fourth quarter as a positive end to the fiscal year for Box, Inc. The company’s new products are gaining traction, contributing to an improved bookings outlook and an expected revenue growth trajectory throughout the year. With revenue growth of 4.09% and analyst targets ranging from $21 to $42, market sentiment remains mixed. JPMorgan reaffirms its medium to long-term outlook for Box, Inc., expecting it to become a central content layer between collaboration tools and enterprise applications, while also capitalizing on generative AI to add value for its customers.For deeper insights into Box’s financial health and growth prospects, explore the comprehensive Pro Research Report available on InvestingPro, which offers detailed analysis of this and 1,400+ other US stocks.
In other recent news, Box Inc. reported its fourth-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.42, slightly above the forecast of $0.41. The company’s revenue reached $279.5 million, marginally exceeding the anticipated $279.47 million. Despite these positive results, the company’s stock experienced a decline, reflecting investor concerns beyond earnings. Looking ahead, Box anticipates revenue growth for fiscal year 2026, projecting between $1.155 billion and $1.160 billion. Analysts at Citi have adjusted their outlook on Box, reducing the stock price target from $40.00 to $39.00, while maintaining a Buy rating. The revision comes in light of Box’s mixed financial outlook, influenced by factors such as the sale of data center assets and deferred tax expenses. Citi analysts remain optimistic about Box’s strategic direction, particularly highlighting the promising start of the Enterprise Advanced Suite.
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