Box (NYSE: BOX) reported Q3 EPS of $0.31, $0.01 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $301.1 million versus the consensus estimate of $297.46 million.

• Outlook
• Approximately 40% of Box’s revenue is generated outside of the U.S., of which approximately 65% is in Japanese Yen. The following guidance includes the expected impact of FX headwinds, assuming present foreign currency exchange rates.
• As Box has become consistently profitable on a GAAP basis, the Company has released valuation allowances associated with certain deferred tax assets. Accordingly, in fiscal year 2026, Box is recognizing deferred tax expense. This non-cash expense is reflected in Box’s GAAP and non-GAAP diluted net income per share guidance for the fiscal fourth quarter and full fiscal year 2026.
• Box currently has $205 million of outstanding 0% convertible senior notes due to mature on January 15, 2026. Upon conversion, Box intends to satisfy its conversion obligation by paying the outstanding convertible debt principal with cash and delivering any conversion premium in shares of common stock. Box does not expect any meaningful dilution in connection with the settlement of these notes unless the conversion premium is above the capped call price of $35.58.
• Q4 FY26 Guidance
• Revenue is expected to be approximately $304 million, up 9% year-over-year, or 8% on a constant currency basis. This includes an expected positive impact of approximately 100 basis points due to FX.
• GAAP operating margin is expected to be approximately 11%, and non-GAAP operating margin is expected to be approximately 30%. This includes an expected positive impact of 20 basis points due to FX.
• GAAP net income per share attributable to common stockholders is expected to be approximately $0.06. GAAP EPS guidance includes an expected negative impact of $0.08, which includes a positive impact of $0.01 from favorable exchange rates and a negative impact of $0.09 from the recognition of non-cash deferred tax expenses.
• Non-GAAP diluted net income per share attributable to common stockholders is expected to be approximately $0.33. Non-GAAP EPS guidance includes an expected negative impact of $0.18, which includes a positive impact of $0.01 from favorable exchange rates and a negative impact of $0.19 from the recognition of non-cash deferred tax expenses, as compared to a negative impact of $0.01 in the prior year.
• Weighted-average diluted shares outstanding are expected to be approximately 147 million.
• Full Year FY26 Guidance
• Full year FY26 guidance below assumes a neutral impact from foreign exchange rates, assuming present foreign currency exchange rates.
• Revenue is expected to be approximately $1.175 billion, up 8% year-over-year. This includes an expected positive impact of approximately 70 basis points due to FX.
• GAAP operating margin is expected to be approximately 7%, and non-GAAP operating margin is expected to be approximately 28%. This includes an expected positive impact of approximately 10 basis points due to FX.
• GAAP net income per share attributable to common stockholders is expected to be approximately $0.19. GAAP EPS guidance includes an expected negative impact of $0.19, which includes a positive impact of $0.02 from favorable exchange rates and a negative impact of $0.21 from the recognition of non-cash deferred tax expenses.
• Non-GAAP diluted net income per share attributable to common stockholders is expected to be approximately $1.28. Non-GAAP EPS guidance includes an expected negative impact of $0.59, which includes a positive impact of $0.02 from favorable exchange rates and a negative impact of $0.61 from the recognition of non-cash deferred tax expenses, as compared to a negative impact of $0.04 in the prior year.
• Weighted-average diluted shares outstanding are expected to be approximately 149 million.

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