Dropbox Q1 revenue rises 0.8%, beats analyst estimates

Dropbox

07/05/2026 21:15

Overview

Cloud storage provider's Q1 revenue rose 0.8% yr/yr, beating analyst expectations

Adjusted EPS for Q1 beat consensus

Company cites improved retention and core business strength as drivers of growth

Outlook

Dropbox did not provide specific financial guidance in the press release

Result Drivers

USER RETENTION - Co said improved retention in Individuals segment supported revenue growth

PRODUCT IMPROVEMENTS - Co cited funnel and product improvements in Teams as contributing to results

DASH EXPANSION - Co said it is continuing to expand Dash in Dropbox across its user base

Company press release: ID:nBw4X5H8Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$629.50 mln
$620.56 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.76
$0.70 (7 Analysts)
Q1 EPS
$0.48
Q1 Adjusted Net Income
Beat
$180.40 mln
$170.62 mln (6 Analysts)
Q1 Net Income
$114.50 mln
Q1 Gross Margin
79.70%
Q1 Adjusted EBIT Margin
40.10%
Q1 EBIT Margin
27.50%


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 $27.00, about 9.4% above its May 6 closing price of $24.69

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)