8x8 (EGHT) Stock Forecast & Price Target

8x8 Inc has demonstrated robust core service revenue growth of nearly 6% year-over-year, marking the fourth consecutive quarter of accelerating expansion, while usage-based offerings have surged to represent nearly one-fifth of service revenue, up from 13% a year prior. The company's international presence is also strengthening, with significant growth in various sectors across Europe and APAC, coupled with better-than-expected total and service revenues that exceeded street estimates. Furthermore, 8x8's ability to deleverage debt has afforded management the flexibility to engage in share buybacks, pursue strategic acquisitions, and continue investing in research and development, reinforcing their competitive position in high-value markets.

8x8 Inc has reduced its total debt by 40% since August 2022, decreasing borrowings from $550 million to $329 million, primarily attributed to sustained operating cash flow; however, this reduction may not adequately address the underlying challenges the company faces. The company's outlook is further plagued by pricing pressures within the competitive market for unified communications and contact center services, which can negatively impact profitability. Additionally, a failure to successfully integrate new customers onto its X platform may lead to increased customer churn, thereby intensifying the risks associated with the company's projected revenue decline, as evidenced by a revised FY27 revenue estimate decrease from $730 million to $725 million.