8x8 (EGHT) Stock Forecast & Price Target

8x8 is viewed positively because its business is shifting from a seat-subscription model toward higher-margin platform usage, with management targeting an 8% total revenue CAGR through FY30 and usage rising from 25%–30% of revenue today to 35%–40% by FY30. The company’s Q4 FY26 results and FY27 guidance showed improving execution, including $185.2M of total revenue, record $180.2M service revenue, 10.7% operating margin, and 21 consecutive quarters of positive cash flow, while usage-based revenue reached 23% of service revenue and grew over 70% Y/Y. Fundamental upside is further supported by 67% growth in paid AI customers, a 9% attach rate on recurring revenue, and rapid deleveraging from $548M peak debt to $309.4M, which should expand earnings as interest expense fades.

8x8 is facing a framework in which revenue growth near 8% is being overwhelmed by a gross margin reset from 60.2% toward the low-to-mid 50% range, leaving gross profit growth in the low single digits and making FY29 the “pinch year” when operating income is roughly flat before any FY30 reacceleration. The company’s path to meaningful operating leverage is highly execution-dependent, requiring opex to fall from about 50% of revenue in FY28 to the mid-40s by FY30, even as usage revenue visibility weakens and management expects 2Q27 usage growth to decelerate to 30–35% Y/Y from about 63% in 1Q27. Competitive pressure, pricing pressure, and the risk that AI benefits are overstated or passed through in gross margin terms further support a cautious outlook, especially given that 8x8’s disclosures imply the margin glide, not adoption metrics, will determine value creation.