Shares of Box Inc. (BOX) plummeted 7.8% in pre-market trading on Wednesday, as the cloud storage company faced pressure from multiple fronts.
The company reported its earnings for the quarter ended January 31, meeting analysts' expectations for adjusted earnings but warning that a stronger dollar would weigh on its profitability for the upcoming fiscal year 2026. Box forecast fiscal 2026 adjusted earnings of $1.13 to $1.17 per share, falling short of analysts' expectations of $1.83 per share due to currency headwinds.
Furthermore, broader macroeconomic and geopolitical uncertainties are raising concerns about consumer demand and business sentiment. According to Box's management, heightened volatility in the economic and geopolitical environments has negatively impacted customer traffic, potentially hindering the company's growth prospects in the near term.