8x8, Inc. (EGHT) AI Stock Analysis
EGHT AI stock analysis summary
AI Research8x8, Inc. (EGHT) is a cloud provider of unified communications, contact center, and CPaaS solutions. In FY2026, the company generated revenue of $735.8M and returned to profitability with net income of $1.6M, while free cash flow reached $52.0M. However, total debt stands at $357.5M against cash and short-term investments of $90.6M as of June 30, 2026.
- Market cap
- $280.2M
- Revenue (TTM)
- $744.6M
- P/E
- 48.5x fwd 15.8x
- 1Y return
- 4.9% S&P 500 16.8%
- Avg. target
- $2.58 33.2% vs last close
Bull case
- The company achieved positive net income of $1.6M in FY2026 after reporting net losses of -$27.2M in FY2025 and -$175.4M in FY2022.
- Free cash flow reached $52.0M in FY2026, demonstrating consistent cash conversion despite modest top-line growth.
- Analysts maintain a mean price target of $2.58, representing 33.2% potential upside from the last closing price of $1.94.
Bear case
- Total debt stands at $357.5M against cash and short-term investments of $90.6M, resulting in a high debt-to-equity ratio of 2.42.
- The stock has lost 91.9% over the past 5 years while the S&P 500 gained 83.0% over the same period.
- Diluted share count increased by 25.1% over the past 5 years, diluting existing shareholders.
What 8x8 does
8x8, Inc. provides cloud-based Software-as-a-Service solutions encompassing voice, video, chat, contact center, and enterprise application programmable interface services. Its primary product is 8x8 Work, an integrated platform offering enterprise voice connected to the public switched telephone network, video meetings, and unified messaging. The company also delivers 8x8 Contact Center for multi-channel customer interactions and 8x8 CPaaS, which allows developers to embed real-time communications into applications. Operating globally from Campbell, California, 8x8 serves small and mid-size businesses, mid-market enterprises, and government agencies through direct sales, digital marketing, conferences, and lead generation channels.
Growth and profitability
Revenue expanded at a 5-year CAGR of 6.7% from FY2021 to FY2026, reaching $735.8M in FY2026 after a 1.9% decline to $715.1M in FY2025. Gross margin contracted from 69.1% in FY2024 to 64.6% in FY2026. Operating margin improved from -24.2% in FY2022 to 2.6% in FY2026, enabling net income to turn positive at $1.6M compared to -$175.4M in FY2022. For the latest quarter ended June 30, 2026, quarterly revenue grew 4.9% year-over-year while quarterly earnings surged 83.4%. Trailing twelve month revenue reached $744.6M with a profit margin of 0.6% and diluted EPS of $0.04.
Balance sheet and cash flow
As of June 30, 2026, 8x8 held $90.6M in cash and short-term investments against total debt of $357.5M, leaving net debt at $266.9M. The debt-to-equity ratio was 2.42, and the current ratio stood at 1.05. Operating cash flow reached $55.7M in FY2026, supporting free cash flow of $52.0M. During FY2026, capital expenditures were $3.7M and share buybacks totaled $1.8M, while the share count rose 25.1% over five years.
Valuation and performance
At a last close of $1.94 on October 16, 2026, 8x8 has a market capitalization of $280.2M and an enterprise value of $598.4M. Its trailing P/E of 48.5x is above the median of its US-listed Technology peers of 28.1x, but its forward P/E of 15.8x sits below the peer median of 18.8x. The stock trades at an EV/EBITDA of 10.5x versus the peer median of 16.6x, and a price-to-sales of 0.4x versus 2.8x. Over the past year, EGHT returned 4.9%, trailing the S&P 500 return of 16.8%.
What analysts expect
Wall Street coverage consists of 2 Strong Buy ratings and 1 Strong Sell rating. The mean price target of $2.58 implies an upside of 33.2% from the last close of $1.94. For the current fiscal year ending March 31, 2027, consensus estimates project revenue of $755.8M and EPS of $0.35, reflecting an EPS drop of 11.7%. The company has beaten EPS expectations in each of the last 4 quarters, with next earnings scheduled for November 3, 2026.
Key risks and what to watch
- A net debt burden of $266.9M poses refinancing and liquidity risks given the cash balance of $90.6M.
- Gross margin declined from 69.1% in FY2024 to 64.6% in FY2026, signaling potential cost pressure.
- Consensus estimates project an EPS decline of 11.7% to $0.35 for the fiscal year ending March 31, 2027.
- With a beta of 1.85, the stock exhibits high volatility compared to the broader market.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this EGHT AI stock analysis
This page is an AI-written research summary of 8x8, Inc. (EGHT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: EGHT income statement, EGHT balance sheet, EGHT key metrics, EGHT analyst forecast, EGHT chart. See the EGHT stock overview for the latest quote and news.
EGHT AI stock analysis FAQ
Does 8x8 pay a dividend?
No, 8x8 does not pay a dividend. In FY2026, the company deployed cash toward $1.8M in share buybacks and $3.7M in capital expenditures.
When does 8x8 report its next earnings?
8x8 is scheduled to report its next earnings on November 3, 2026. The company has beaten EPS estimates in each of the prior 4 quarters.
How much debt does 8x8 have?
As of June 30, 2026, 8x8 carried $357.5M in total debt and $90.6M in cash and short-term investments, resulting in net debt of $266.9M and a debt-to-equity ratio of 2.42.
What is the consensus price target for EGHT?
Analysts have a mean price target of $2.58 for EGHT, which indicates a 33.2% premium over its last closing price of $1.94.