8x8 (EGHT) Stock Forecast & Price Target

8x8 Inc has demonstrated a positive financial trajectory, as evidenced by a nearly 6% year-over-year growth in core service revenue, marking the fourth consecutive quarter of accelerating growth. The company's strategic shift towards usage-based offerings, now accounting for nearly 20% of service revenue compared to 13% a year ago, underscores its successful expansion in CPaaS APIs, intelligent voice automation, and AI-powered solutions, supported by a growing international revenue mix. Furthermore, 8x8's robust financial performance in Q2 2026, surpassing street estimates and guidance, alongside substantial growth in AI voice interactions and ongoing investments in R&D and market expansion, reflects its solid foundation for future growth.

8x8 Inc. has successfully reduced its debt by 40%, lowering total borrowings from $550 million to $329 million, driven by strong operating cash flow; however, this debt reduction alone does not mitigate concerns related to revenue generation and customer retention. The company faces significant challenges, including pricing pressures within the market and a failure to effectively acquire new customers for its Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) platforms, which could result in increased customer churn. Furthermore, 8x8 has revised its financial outlook downward, lowering its FY27 Gross Margin estimate from 67.1% to 66.0% and Total Revenue estimate from $730 million to $725 million, reflecting a cautious approach to growth amid these operational challenges.