8x8 (EGHT) Stock Forecast & Price Target

8x8 is viewed favorably because its core subscription and usage model is showing improving demand, with Q4 FY26 total revenue of $185.2M and service revenue of $180.2M both above guidance, while core service revenue grew about 8% Y/Y and usage-based revenue rose over 70% Y/Y to 23% of service revenue. The outlook is further supported by AI-led adoption and cross-sell momentum, including 67% growth in paid AI customers, 9% recurring-revenue attach, AI-customer NRR above 100%, and 18% Y/Y growth in multi-product customers, all of which suggest broadening platform penetration rather than isolated deal wins. Profitability and balance-sheet progress also strengthen the thesis, as operating margin reached 10.7%, CFFO was $14.4M for a 21st consecutive positive-cash-flow quarter, and debt has been reduced to $309.4M, leaving more room for deleveraging and earnings leverage as revenue compounds.

8x8 is facing a weak fundamental setup because FY28 implies only modest earnings progression, with Non-GAAP gross margin falling to 60.2%, gross profit of $489M, and operating income of just $80M at a 9.9% margin. The AI narrative is not yet convincing, as the 14x deal-size metric likely reflects customer mix rather than AI-driven expansion, while the ~10% uplift on AI-inclusive deals is self-selected and lacks cohort-level proof. Visibility also looks poor because usage revenue is not contracted, 2Q27 usage growth is expected to slow to 30–35% Y/Y from ~63% in 1Q27, and intensified UCaaS competition and pricing pressure threaten customer acquisition and retention.