Box earnings setup ‘tricky’ on stronger dollar, says JPMorgan

JPMorgan expects Box (BOX) to deliver a “consistent quarter” on a constant currency basis, with some indication of growth stabilizing or inverting higher on a constant currency basis as it enters a period of easier comps in the second of its fiscal year. However, the recent strengthening of the U.S. dollar “creates a difficult setup” for currency with respect to formulating guidance, the analyst tells investors in a research note. As such, JPMorgan thinks the current consensus estimate in dollars for fiscal 2026 “likely presents a high bar for Box to clear.” With the stock up 38% year-to-date, this creates a “slightly tricky setup through the quarter,” contends the firm. However, medium to long term, JPMorgan believes the thesis remains intact as it sees Box positioning itself as the unifying content layer between collaboration tools as well as enterprise applications. It keeps an Overweight rating on the shares.