8x8 (EGHT) Stock Forecast & Price Target

8x8 is viewed favorably because the business is showing durable execution, with Q4 FY26 revenue of $185.2M, record service revenue of $180.2M, and 21 consecutive quarters of positive cash flow, while usage-based revenue reached 23% of service revenue and grew over 70% Y/Y. Its product mix is improving through AI Studio, 8x8 Engage, and CPaaS expansion, supported by 67% growth in paid AI customers, a 9% attach rate, and multi-product customer growth of 18% Y/Y, which suggests broadening adoption inside the installed base. The balance sheet is also strengthening as debt fell to $309.4M from the August 2022 peak of $548M, leverage dropped to 2.3x, and management continues to target zero debt, creating meaningful earnings and valuation upside from deleveraging.

8x8 is viewed negatively because its path to growth is constrained by a sharp gross-margin reset from 60.2% toward management’s low-to-mid 50% range, while revenue is only compounding near 8%, leaving gross profit growth in the low single digits and operating income dependent on roughly six points of leverage from opex reduction. The framework also highlights execution risk: operating expenses must fall from about 50% of revenue in FY28 to the mid-40s by FY30, yet the middle year looks flat and the company has only shown one quarter of meaningful efficiency gains, making sustained delivery uncertain. Beyond the margins, usage revenue is not contracted, management expects 2Q27 usage growth to decelerate to 30–35% Y/Y from about 63% in 1Q27, and competition, pricing pressure, and uneven AI disclosures raise further confidence concerns.