8x8 (EGHT) Stock Forecast & Price Target

8x8 Inc. reported core service revenue growth of nearly 6% year-over-year, signaling the fourth consecutive quarter of accelerating growth, particularly when excluding Fuze-related revenue. The company's significant gains in AI product revenue, which grew 30% year-over-year, along with the increase in usage-based revenue—now comprising 21% of service revenue—highlight robust demand for its technology offerings, including CPaaS APIs and AI-powered solutions. Additionally, the acceleration of international expansion, particularly in healthcare and regulated industries, combined with a strong performance that exceeded Q2 2026 revenue estimates, reinforces the positive outlook for 8x8's future financial performance.

8x8 Inc has seen a significant reduction in debt, decreasing from $550 million to $329 million, bolstered by steady operating cash flow; however, the company faces substantial challenges, including pricing pressures that could impact its profitability. The failure to successfully acquire new customers for its unified communications and contact center services may contribute to increased customer churn, particularly if the integration of customers onto the X platform is inadequate. Additionally, the company's gross margin estimate for FY27 has been lowered from 67.1% to 66.0%, resulting in a revenue estimate reduction from $730 million to $725 million, reflecting a cautious outlook on growth in consumption-based pricing.