Dropbox beats Q4 revenue, adjusted EPS expectations

Dropbox

19/02/2026 21:14

Overview

Cloud storage provider's Q4 revenue beat analyst expectations despite a 1.1% yr/yr decline

Adjusted EPS for Q4 beat analyst expectations

Company repurchased 14.4 mln shares for $414.6 mln during the quarter

Outlook

Dropbox plans to drive engagement and adoption of Dash in 2026

Company focuses on strengthening core FSS foundation and accelerating Dash

Result Drivers

FORMSWIFT IMPACT - Revenue declined 1.1% yr/yr, but excluding FormSwift, revenue grew 0.4%

DATACENTER REFRESH - Decrease in gross margin due to increased depreciation from datacenter refresh cycle

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$636.20 mln
$628.90 mln (7 Analysts)
Q4 Adjusted EPS
Beat
$0.68
$0.67 (7 Analysts)
Q4 EPS
$0.43
Q4 Adjusted Net Income
Slight Beat*
$173.90 mln
$172.66 mln (6 Analysts)
Q4 Net Income
$108.70 mln
Q4 Gross Margin
79.20%
Q4 Adjusted EBIT Margin
38.20%
Q4 EBIT Margin
25.50%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Dropbox Inc is $29.00, about 17.5% above its February 18 closing price of $24.68

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw5pFDZKa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)