8x8 2026 Q1 Earnings 62.5% Earnings Improvement

8x8 reported mixed results for Q1 2026, showing year-over-year revenue growth but continued losses. The company narrowed its net loss by 62.5% to $0.03 per share and reduced overall losses by 58.1%. However, the stock underperformed in the 30 days following the earnings release, delivering a -51.52% return, far below the 62.69% benchmark. The firm raised full-year service revenue guidance, signaling confidence in long-term growth.

Revenue
Total revenue for 8x8 grew by 2.0% to $176.31 million in Q1 2026 compared to the prior year, driven primarily by service revenue. Service revenue, the company’s core segment, accounted for the majority of the top-line growth, reaching $176.31 million. Additional revenue from other segments, such as non-service offerings, contributed $5.05 million, bringing total revenue to $181.36 million.

Earnings/Net Income
Earnings improved significantly, with 8x8 narrowing its net loss to $-4.32 million in Q1 2026, a 58.1% reduction from $-10.29 million in the same period a year ago. On a per-share basis, the company reduced its loss by 62.5%, reporting a loss of $0.03 per share versus $0.08 in Q1 2025. While the improvement in net income is positive, the company remains unprofitable and must continue to drive efficiency and growth.

Price Action
The stock price of 8x8 (EGHT) experienced mixed performance in the short term. It rose 5.71% during the latest trading day but fell 4.64% over the most recent full trading week and 14.35% month-to-date, highlighting volatility in investor sentiment.

Post-Earnings Price Action Review
The post-earnings investment strategy—buying 8x8 shares following its Q1 2026 earnings report and holding for 30 days—underperformed significantly. Over the past three years, the strategy generated a return of -51.52%, far below the 62.69% benchmark. The excess return of -114.21% and a CAGR of -23.68% indicate substantial underperformance. Despite a maximum drawdown of 0.00%, suggesting no further decline during the holding period, the initial losses were considerable, signaling a poor return for investors.

CEO Commentary
Samuel Wilson, CEO of 8x8, highlighted the company’s return to year-over-year service and total revenue growth in Q1 2026, crediting the integrated CX platform and alignment with customer engagement trends. He emphasized expanded product adoption and consumption-based revenue acceleration. Wilson also underscored the company’s commitment to long-term shareholder value and its strategic focus on AI implementation and platform innovation. He expressed confidence in 8x8’s position to lead in the future of intelligent, integrated, and voice-powered customer experience.

Guidance
For Q2 2026, 8x8 expects service revenue between $170 million and $175 million and total revenue between $175 million and $180 million. Non-GAAP gross margin is forecasted to range between 66.0% and 68.0%, with non-GAAP operating margin between 8.0% and 9.0%. The company anticipates cash flow from operations between $3 million and $5 million and non-GAAP net income per share, diluted, of $0.06 to $0.08. For the full fiscal year 2026, 8x8 projects service revenue of $685 million to $700 million, total revenue of $706 million to $720 million, and non-GAAP net income per share, diluted, of $0.28 to $0.33.

Additional News
On August 7, 2025, 8x8 updated its FY 2026 earnings guidance, reflecting optimism in its long-term revenue trajectory and operational efficiency. While no immediate details on M&A activity, executive changes, or capital return programs were disclosed, the firm’s strategic direction remains centered on enhancing its integrated CX platform and expanding AI-driven solutions. The company continues to align with evolving customer engagement trends, emphasizing innovation and long-term value creation for shareholders.