Box (BOX) saw a "good start to the year" with its Q1 results, which were backed by stronger billings, RBC Capital Markets said in a report emailed Wednesday.

The company's Q1 revenue came in "slightly above consensus with stronger billings (driven by early renewals), and better than expected guidance," RBC said.

The investment firm noted that for the fourth quarter in a row, Box's net revenue retention was stable quarter on quarter and may have already bottomed out.

However, RBC highlighted the fact that Box's management "called out a 1% lower FY26 billings guide" amid the macro uncertainty.

Meanwhile, the company's revenue outlook for the full year increased $10 million compared with the previous guidance "which was noted to be 'roughly consistent' on a constant currency basis," the firm said.

RBC increased Box's price target to $24 from $21, while keeping the company's underperform rating.

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