8x8 (EGHT) Stock Forecast & Price Target

8x8 Inc. demonstrated robust core growth, with service revenue, excluding Fuze-related contributions, increasing nearly 6% year-over-year, marking the fourth consecutive quarter of accelerating growth. The company's AI product revenue surged by 30% year-over-year and now accounts for a substantial portion of the service revenue, with nearly one-fifth emanating from usage-based offerings, which reflects significant advancements in CPaaS APIs and intelligent voice automation. Additionally, 8x8's successful international expansion, particularly in healthcare and regulated industries across Europe and APAC, contributed to better-than-expected total revenue figures for Q2 2026, surpassing Street estimates and reaching the high end of the company's guidance.

8x8 Inc is facing significant challenges that contribute to a negative outlook on its stock, primarily due to potential pricing pressures and difficulties in acquiring new customers within its UCaaS and CCaaS offerings. The company has revised its FY27 Gross Margin estimate downward from 67.1% to 66.0%, reflecting concerns over lower-margin, usage-based services and leading to a total revenue estimate adjustment from $730 million to $725 million. Additionally, while total debt has been reduced by 38%, the ongoing risk of increased customer churn and insufficient product innovation amid intense competition raises concerns about the company's ability to sustain market acceptance.