Box Posted 17% Billings Growth and 106% NRR While Naming AI's Gross Margin Cost at 20 Basis Points

SaaStr (figures corroborated by Box Q2 FY27 earnings call transcript via Benzinga, 2026-08-25)·medium signalXBlueskyLinkedInCopy link

Box reported Q2 FY27 on 2026-08-25 with revenue of $321.1 million, up 9% and 11% in constant currency, billings up 17%, non-GAAP operating margin of 29.4% (up 90bps), gross margin of 81.2%, and raised full-year guidance $10 million to about $1.29 billion. Net retention improved to 106% exiting FY27, which Box attributes to Enterprise Advanced customers running governed AI workflows, legacy migrations and agent integrations. The number worth keeping is the disclosed AI cost of goods: roughly 20 basis points of gross margin, which is the first concrete figure from a mid-cap SaaS vendor on what shipping AI features actually costs at the margin line.