8x8 Q2 revenue rises beats estimates, outlook raised on increased adoption of AI solutions

Overview

• U.S. business communications platform's fiscal Q2 revenue grew 4% yr/yr, beating analyst expectations

• Company raised full-year outlook for revenue, profitability, and cash flow from operations

• Growth driven by increased adoption of AI solutions and platform enhancements

Outlook

• 8x8 raises full-year 2027 outlook for revenue, profitability, and cash flow from operations

• Company expects Q3 total revenue between $188 mln and $192 mln

• 8x8 forecasts fiscal 2027 total revenue of $750 mln to $770 mln

Result Drivers

• AI SOLUTIONS ADOPTION - Co said accelerating adoption of AI solutions, including AI Studio, contributed to revenue growth

• PLATFORM ENHANCEMENTS - Co cited recent updates to its platform, such as Customer 360 and JourneyIQ, as supporting improved customer experience and operational efficiency

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for 8x8 Inc is $3.00, about 43.9% above its November 3 closing price of $2.09

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)