Box shares seen undervalued despite strong Q1 results and raised 2027 outlook amid AI market shifts.

Box reported better-than-expected Q1 results and raised its full-year revenue growth guidance to 9% year-over-year, signaling strong sales momentum. The company expects a pro forma EPS of $1.56 and a 28% operating margin for fiscal year 2027. Despite concerns about AI-driven SaaS disruption, Box's core file storage and collaboration services remain essential for enterprise IT, supporting its value proposition. The stock trades at relatively low multiples, suggesting it may be undervalued amid the current AI-focused market concentration on semiconductor stocks.