Box (BOX) Stock Forecast & Price Target

Box demonstrated significant growth in key financial metrics, with revenue from partner-led wins increasing by double digits in the third quarter and net revenue retention (NRR) improving to 104%. The company reported billings growth of 12% year-over-year in constant currency, surpassing management expectations, and also showed an impressive revenue beat of $2.6 million, contributing to a year-over-year growth acceleration. Furthermore, Box raised its FY26 revenue guidance to $1,175 million, indicating a positive trajectory with an improved outlook for sustained double-digit growth driven by strong demand for its Enterprise Advanced offerings.

The financial outlook for Box is negatively impacted by the challenge of adequately monetizing growth investments, with the possibility of disappointing revenue growth and worsening operating losses that may fail to meet projections. Additionally, the company faces inherent profitability issues with new customers, as initial acquisition and implementation costs tend to result in unprofitability during early years, with revenue distribution occurring over a protracted period. The risk of security breaches presents a further threat to demand for Box's platform, and potential financial losses could deplete cash reserves, necessitating additional financing that may dilute shareholder value.