8x8 (EGHT) Stock Forecast & Price Target

8x8 is attractive because its mix is shifting from seat subscriptions toward higher-velocity usage revenue, supporting an 8% revenue CAGR through FY30 and expanding gross profit dollars even as gross margin resets to the low-to-mid 50% range. Recent execution reinforces that thesis: Q4 FY26 revenue was $185.2M, service revenue reached a record $180.2M, operating margin was 10.7%, and CFFO was $14.4M, marking the 21st consecutive quarter of positive cash flow. Management’s three-year framework, 18% growth in multi-product customers, 23% usage-based service revenue, and $309.4M of debt after a 43% reduction from the August 2022 peak all point to improving leverage and a stronger, more resilient platform.

8x8 is facing a muted fundamental trajectory as FY28 still implies only modest Non-GAAP EPS of $0.40 on $489M of gross profit and an $80M operating income, while FY29 is described as a “pinch year” with gross profit up only about $6M and operating income roughly flat year over year. The bearish view is reinforced by intensifying UCaaS competition, where success depends on continuously developing scalable cloud offerings to defend market acceptance in a crowded field. In addition, pricing pressure, churn risk, and difficulty converting customers to the X platform could weigh on revenue quality and limit sustained margin expansion.