Box Inc. Roars into Q1 FY26 with 4% Revenue Growth: Unlocking Enterprise Potential through AI-Driven Workflows
May 27, 2025 - Palo Alto, CA - Box Inc., a leader in cloud content management and collaboration, has reported strong financials for its first quarter of fiscal year 2026. The company's Q1 FY26 earnings call revealed impressive growth across key metrics, with revenue increasing by 4% year-over-year to $ and a significant jump in Remaining Performance Obligations (RPO) by 21%.
The growth can be attributed to the company's focus on delivering innovative solutions that meet the evolving needs of its customers. Box AI, a key driver of this growth, has seen strong adoption among enterprises looking to transform their AI-driven workflows around content. As Aaron Levie, Co-Founder and CEO, pointed out during the earnings call, "We had a strong start to FY '26 with results reflecting continued growth in customer demand for Box AI."
One of the notable examples of this momentum is a leading university hospital that upgraded to Box's Enterprise Advanced plan. The hospital aimed to make Box its single source of truth while unlocking value through box apps and AI-driven metadata extraction. Another example is an investment advisory firm that upgraded to Enterprise Advanced to expand their use of diverse AI models through the Box AI studio.
The demand for Box's enterprise-grade solutions is also reflected in the company's operating margins, which stood at 25.3% in Q1 FY26. This represents a significant improvement over guidance and demonstrates the company's ability to deliver profitability even as it invests in growth initiatives.
Aaron Levie emphasized that there is a fundamental shift happening in what business will look like in an AI-first world. "In the first quarter, I had the opportunity to meet with well over 100 customers, and it's incredibly clear that there is a fundamental shift in what business will look like in an AI-first world."
As Box continues to grow its presence in the market, it remains committed to delivering innovative solutions that unlock enterprise potential through AI-driven workflows. With its strong financial performance and growing customer base, the company is well-positioned for continued success.
