Box Inc. (BOX) released its third-quarter earnings report Tuesday, and while the numbers looked decent on the surface, Wall Street wasn't thrilled with what's coming next. The stock slumped in extended trading after the company issued fiscal 2026 earnings guidance that fell short of analyst expectations.

Breaking Down the Numbers

Box reported quarterly earnings of 31 cents per share, matching the analyst consensus estimate. That's actually a 31% decline from the 45 cents per share the company earned in the same quarter last year. On the revenue front, things looked better. The company posted $301.1 million in quarterly sales, beating the $299.1 million analyst estimate by about 0.7%. That represents solid year-over-year growth of roughly 9% from $275.9 million.

The Silver Linings

Box highlighted several positive developments from the quarter. The company announced a new $150 million expansion of its stock repurchase program, signaling confidence in its own prospects. Remaining performance obligations hit $1.5 billion, climbing 18% overall and 19% on a constant currency basis. Short-term RPO reached $837 million (up 14%), while long-term RPO grew to $680 million (up 25%). Billings came in at $296 million, up 12% both as reported and on a constant currency basis.

"Our strong third quarter performance proves how quickly enterprises are embracing Box as their AI-powered Intelligent Content Management platform," said Aaron Levie, co-founder and CEO of Box.

What Spooked Investors

The problem wasn't the quarter just completed—it was the outlook. Box expects fiscal 2026 EPS to come in at more than $1.28, falling short of the $1.31 analyst estimate. On the revenue side, the company projected more than $1.18 billion, which lines up with the $1.18 billion consensus but apparently didn't offer much upside surprise.

According to market data, BOX stock fell 4.5% to $28.80 in Tuesday's extended trading session.