8x8, Inc. Reports Strong Q3 2026 Earnings Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Should l Buy EGHT?
Source: seekingalpha
- Sustained Growth: 8x8 reported total revenue of $185 million and service revenue of $179.7 million in Q3, exceeding guidance by approximately $3 million, with year-over-year growth rates of 3.4% and 3.6%, respectively, indicating strong momentum in revenue growth.
- Innovation-Driven: Usage-based offerings grew nearly 60% year-over-year, now accounting for 21% of service revenue, primarily driven by CPaaS APIs, showcasing the company's success in adopting new technologies.
- Multiproduct Strategy: All top 20 customers are using multiple products, with most utilizing three or more, leading to increased revenue and retention, while four new strategic products saw triple-digit year-over-year growth.
- Optimistic Outlook: Management raised Q4 2026 service revenue guidance to between $173.5 million and $178.5 million, reflecting confidence in future growth despite near-term revenue headwinds from the decommissioning of the Fuze platform.
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Analyst Views on EGHT
Wall Street analysts forecast EGHT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EGHT is 2.30 USD with a low forecast of 1.50 USD and a high forecast of 3.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
1 Hold
3 Sell
Hold
Current: 1.720
Low
1.50
Averages
2.30
High
3.00
Current: 1.720
Low
1.50
Averages
2.30
High
3.00
About EGHT
8x8, Inc. is a provider of software-as-a-service solutions for contact centers, voice communications, video meetings, employee collaboration, and embeddable communication application programming interfaces (API). The Company’s communications platform solutions comprise the 8x8 XCaaS platform, which is an integrated contact center, voice communications, video, chat, and SMS solution built on one global cloud communications platform. Its integrated technology platform includes 8x8 Work, 8x8 Contact Center, 8x8 Engage and 8x8 X Series. Its 8x8 Work is an end-to-end unified communications as a service solution that delivers enterprise-grade voice services, secure video meetings, and unified messaging including direct messages, public and private team messaging rooms, and peer-to-peer short and multimedia messaging, or SMS/MMS. 8x8 Contact Center is a cloud-based contact center as-a-service solution that includes omnichannel customer engagement, advanced analytics, and other features.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
8x8, Inc. Reports Strong Q3 2026 Earnings Growth
- Sustained Growth: 8x8 reported total revenue of $185 million and service revenue of $179.7 million in Q3, exceeding guidance by approximately $3 million, with year-over-year growth rates of 3.4% and 3.6%, respectively, indicating strong momentum in revenue growth.
- Innovation-Driven: Usage-based offerings grew nearly 60% year-over-year, now accounting for 21% of service revenue, primarily driven by CPaaS APIs, showcasing the company's success in adopting new technologies.
- Multiproduct Strategy: All top 20 customers are using multiple products, with most utilizing three or more, leading to increased revenue and retention, while four new strategic products saw triple-digit year-over-year growth.
- Optimistic Outlook: Management raised Q4 2026 service revenue guidance to between $173.5 million and $178.5 million, reflecting confidence in future growth despite near-term revenue headwinds from the decommissioning of the Fuze platform.
See More
8X8 Reports Strong Q3 Earnings, Raises Guidance
- Earnings Beat: 8X8 reported a non-GAAP EPS of $0.12 for Q3, exceeding expectations by $0.03, with revenue of $185.1 million reflecting a 3.5% year-over-year increase, indicating ongoing improvements in revenue and profitability.
- Guidance Upgrade: Management has raised its revenue outlook for Q4 FY2026, projecting total revenue between $178.5 million and $183.5 million, and service revenue between $173.5 million and $178.5 million, reflecting optimism about the future business environment.
- Enhanced Profitability: The company anticipates a non-GAAP gross margin of 65% to 66% and an operating margin of 9.5% to 10% for FY2026, demonstrating its commitment to disciplined cost management and sustainable profitability.
- Strong Cash Flow: Expected cash flow from operations for FY2026 is projected to be between $42 million and $45 million, showcasing the company's robust cash generation capabilities that support future investments and growth strategies.
See More
8X8 Scheduled to Announce Q3 Earnings on February 3
- Earnings Announcement Schedule: 8X8 is set to release its Q3 earnings on February 3 after market close, with consensus EPS estimate at $0.09, reflecting an 18.2% year-over-year decline, and revenue estimate at $179.75 million, indicating a 0.5% year-over-year increase, which could influence investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, 8X8 has exceeded EPS estimates 88% of the time and revenue estimates 50% of the time, indicating a level of stability in profitability that may positively impact stock prices.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen four upward revisions with no downward adjustments, and revenue estimates have also experienced four upward revisions, reflecting analysts' optimistic outlook on the company's future performance, potentially attracting more investor interest.
- Market Reaction Analysis: Following the Q2 earnings report, 8X8's stock surged, and although analysts' views remain largely neutral, the market's positive response to its expansion in the Asia-Pacific region may be further validated in the upcoming earnings report.
See More
8x8 Launches Global Secure Pay Solution to Enhance Payment Efficiency
- Enhanced Payment Efficiency: The 8x8 Secure Pay solution accelerates collection processes and reduces manual workloads through automation and conversational AI, thereby improving customer experience and lowering operational costs.
- Global Availability: This solution is now available worldwide, supporting various industries including retail, utilities, transportation, manufacturing, and financial services, catering to diverse customer payment needs.
- Flexible Payment Options: With secure payment links, digital wallets, and IVR payment flows, 8x8 Secure Pay enables customers to complete payments quickly and securely, significantly increasing payment completion rates.
- Automation Driving Revenue: The proactive outreach engine from 8x8 sends secure payment reminders across multiple channels, reducing agent workloads and allowing teams to focus on complex or high-value interactions.
See More
Activist Investors Target Signet Jewelers, Natural Gas Services, and Other Stocks
- Increased Holdings: There has been a notable rise in the holdings of various assets, indicating a shift in investment strategies among market participants.
- Market Implications: This increase in holdings may suggest growing confidence in certain sectors or assets, potentially influencing market trends and investor behavior.
- Sector Focus: Specific sectors are seeing more significant increases in holdings, which could reflect changing economic conditions or investor sentiment.
- Future Outlook: Analysts are monitoring these trends closely to assess their potential impact on future market performance and investment opportunities.
See More
8x8 Acquires Maven Lab to Accelerate Customer Experience Transformation
- Strategic Acquisition: 8x8, Inc. has acquired Singapore-based Maven Lab to accelerate its strategy of delivering end-to-end customer engagement in the Asia-Pacific region, enhancing secure, high-volume communication capabilities for enterprise and public sector organizations.
- Platform Integration: Maven Lab's cloud-based customer engagement and messaging platform, Moobidesk, will integrate with 8x8's communication and automation capabilities, providing a more scalable and unified customer experience platform that enhances enterprise messaging performance.
- Market Impact: Maven Lab's solutions are trusted by regional organizations in healthcare, media, and transport, handling millions of customer engagements annually, and are expected to improve communication efficiency and security through 8x8's global scale and compliance.
- Technological Upgrade: This acquisition will enable 8x8 to offer smarter automation and omnichannel communication experiences, helping organizations across the Asia-Pacific region launch customer journeys faster and improve communication reliability and consistency.
See More
8x8, Inc. Reports Strong Q3 2026 Earnings Growth
- Sustained Growth: 8x8 reported total revenue of $185 million and service revenue of $179.7 million in Q3, exceeding guidance by approximately $3 million, with year-over-year growth rates of 3.4% and 3.6%, respectively, indicating strong momentum in revenue growth.
- Innovation-Driven: Usage-based offerings grew nearly 60% year-over-year, now accounting for 21% of service revenue, primarily driven by CPaaS APIs, showcasing the company's success in adopting new technologies.
- Multiproduct Strategy: All top 20 customers are using multiple products, with most utilizing three or more, leading to increased revenue and retention, while four new strategic products saw triple-digit year-over-year growth.
- Optimistic Outlook: Management raised Q4 2026 service revenue guidance to between $173.5 million and $178.5 million, reflecting confidence in future growth despite near-term revenue headwinds from the decommissioning of the Fuze platform.
See More
8X8 Reports Strong Q3 Earnings, Raises Guidance
- Earnings Beat: 8X8 reported a non-GAAP EPS of $0.12 for Q3, exceeding expectations by $0.03, with revenue of $185.1 million reflecting a 3.5% year-over-year increase, indicating ongoing improvements in revenue and profitability.
- Guidance Upgrade: Management has raised its revenue outlook for Q4 FY2026, projecting total revenue between $178.5 million and $183.5 million, and service revenue between $173.5 million and $178.5 million, reflecting optimism about the future business environment.
- Enhanced Profitability: The company anticipates a non-GAAP gross margin of 65% to 66% and an operating margin of 9.5% to 10% for FY2026, demonstrating its commitment to disciplined cost management and sustainable profitability.
- Strong Cash Flow: Expected cash flow from operations for FY2026 is projected to be between $42 million and $45 million, showcasing the company's robust cash generation capabilities that support future investments and growth strategies.
See More
8X8 Scheduled to Announce Q3 Earnings on February 3
- Earnings Announcement Schedule: 8X8 is set to release its Q3 earnings on February 3 after market close, with consensus EPS estimate at $0.09, reflecting an 18.2% year-over-year decline, and revenue estimate at $179.75 million, indicating a 0.5% year-over-year increase, which could influence investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, 8X8 has exceeded EPS estimates 88% of the time and revenue estimates 50% of the time, indicating a level of stability in profitability that may positively impact stock prices.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen four upward revisions with no downward adjustments, and revenue estimates have also experienced four upward revisions, reflecting analysts' optimistic outlook on the company's future performance, potentially attracting more investor interest.
- Market Reaction Analysis: Following the Q2 earnings report, 8X8's stock surged, and although analysts' views remain largely neutral, the market's positive response to its expansion in the Asia-Pacific region may be further validated in the upcoming earnings report.
See More
8x8 Launches Global Secure Pay Solution to Enhance Payment Efficiency
- Enhanced Payment Efficiency: The 8x8 Secure Pay solution accelerates collection processes and reduces manual workloads through automation and conversational AI, thereby improving customer experience and lowering operational costs.
- Global Availability: This solution is now available worldwide, supporting various industries including retail, utilities, transportation, manufacturing, and financial services, catering to diverse customer payment needs.
- Flexible Payment Options: With secure payment links, digital wallets, and IVR payment flows, 8x8 Secure Pay enables customers to complete payments quickly and securely, significantly increasing payment completion rates.
- Automation Driving Revenue: The proactive outreach engine from 8x8 sends secure payment reminders across multiple channels, reducing agent workloads and allowing teams to focus on complex or high-value interactions.
See More
Activist Investors Target Signet Jewelers, Natural Gas Services, and Other Stocks
- Increased Holdings: There has been a notable rise in the holdings of various assets, indicating a shift in investment strategies among market participants.
- Market Implications: This increase in holdings may suggest growing confidence in certain sectors or assets, potentially influencing market trends and investor behavior.
- Sector Focus: Specific sectors are seeing more significant increases in holdings, which could reflect changing economic conditions or investor sentiment.
- Future Outlook: Analysts are monitoring these trends closely to assess their potential impact on future market performance and investment opportunities.
See More
8x8 Acquires Maven Lab to Accelerate Customer Experience Transformation
- Strategic Acquisition: 8x8, Inc. has acquired Singapore-based Maven Lab to accelerate its strategy of delivering end-to-end customer engagement in the Asia-Pacific region, enhancing secure, high-volume communication capabilities for enterprise and public sector organizations.
- Platform Integration: Maven Lab's cloud-based customer engagement and messaging platform, Moobidesk, will integrate with 8x8's communication and automation capabilities, providing a more scalable and unified customer experience platform that enhances enterprise messaging performance.
- Market Impact: Maven Lab's solutions are trusted by regional organizations in healthcare, media, and transport, handling millions of customer engagements annually, and are expected to improve communication efficiency and security through 8x8's global scale and compliance.
- Technological Upgrade: This acquisition will enable 8x8 to offer smarter automation and omnichannel communication experiences, helping organizations across the Asia-Pacific region launch customer journeys faster and improve communication reliability and consistency.
See More
