Box, Inc. (BOX) shares have fallen 18.9% over the past 12 months, significantly underperforming the Zacks Internet Software industry’s decline of 2.3% and the broader Zacks Computer and Technology sector’s growth of 24.7%. The company’s challenges stem from a tough macroeconomic climate and rising operational costs, which have adversely affected profitability.
For the nine months ending October 31, 2025, Box reported a flat gross margin of 81.2% and a 9.7% increase in operating expenses to $635.6 million. The company anticipates fiscal 2026 revenues of approximately $1.175 billion, reflecting an 8% year-over-year increase, while fourth-quarter revenue is expected to be around $304 million, a 9% annual growth. Non-GAAP earnings are projected at 33 cents per share for Q4, down 21.4% from the same quarter last year.
Box, which has over 2,000 customers contributing at least $100,000 annually, aims to leverage its partnerships with companies like Amazon Web Services and Google to enhance its AI offerings. The company expects a gross margin contraction of 20 basis points for fiscal 2026, alongside stable operating margins at around 28%.
