Box (BOX) Stock Forecast & Price Target

Box has demonstrated significant revenue strength, highlighted by double-digit growth in partner-led wins and a notable improvement in net revenue retention (NRR), which rose to 104%, underscoring strong demand for its Enterprise Advanced offering. The company's gross billings growth accelerated to 12% year-over-year in constant currency, exceeding earlier expectations and indicating robust market traction fueled by strategic go-to-market investments. Furthermore, Box raised its fiscal year 2026 revenue guidance to $1,175 million, reflecting a positive outlook with sustained growth momentum and substantial long-term customer commitments as evidenced by a remarkable 19% year-over-year increase in remaining performance obligations (RPO).

The analysis presents a negative outlook on Box's stock based on several fundamental issues, primarily centered around its revenue growth potential and profitability concerns. Management's challenges in monetizing growth investments, alongside the possibility of an overly optimistic market opportunity, could lead to disappointing revenue growth and exacerbate operating losses and cash flow issues. Additionally, substantial upfront costs associated with acquiring and implementing new customers may hinder profitability in the early years, while the threat of security breaches could further reduce demand for Box's platform amid a competitive landscape.