8x8 (EGHT) Stock Forecast & Price Target

8x8 Inc has demonstrated a positive trajectory in its financial performance, with core service revenue excluding Fuze-related contributions experiencing nearly 6% year-over-year growth, marking the fourth consecutive quarter of accelerating growth. The company has successfully increased its share of service revenue from usage-based offerings to nearly 20%, driven by burgeoning demand for CPaaS APIs and AI-powered solutions, while international expansion has outpaced domestic growth, particularly in key sectors such as healthcare and regulated industries. Furthermore, 8x8's strong financial positioning facilitated share buybacks and selective acquisitions, alongside ongoing investments in research and development, thereby enhancing its operational capabilities and market reach.

8x8 Inc has successfully reduced its total debt by 40% since August 2022, lowering borrowings from $550 million to $329 million, primarily through sustained operating cash flow. However, the company faces significant challenges, including potential pricing pressures in the market and a failure to effectively attract new customers to its unified communications and contact center solutions, leading to increased churn. Additionally, 8x8's FY27 gross margin estimate has been lowered from 67.1% to 66.0%, which has resulted in a revised total revenue forecast decrease from $730 million to $725 million, indicating a more cautious outlook on its near-term growth.