8x8 2026 Q2 Earnings Profitability Surges 105.3% as Revenue Beats Estimates

The cloud communications provider reported fiscal 2026 Q2 earnings on Nov 6, 2025, with revenue rising 1.7% year-over-year to $184.09 million, surpassing analyst expectations. The company also returned to profitability, reporting a net income of $767,000—marking a 105.3% turnaround from a $14.54 million loss in the prior-year period.

Revenue

8x8’s total revenue for Q2 2026 reached $184.09 million, driven by robust performance in its service segment, which accounted for $179.09 million of the total. Additional revenue streams, including hardware and professional services, contributed $5 million, rounding out the quarter’s results. The growth was attributed to expanded market presence and adoption of AI-driven solutions.

Earnings/Net Income

The company’s profitability improved dramatically, with a net income of $767,000 in Q2 2026, a 105.3% swing from the $14.54 million net loss in the same period of 2025. Earnings per share (EPS) rose to $0.01, reversing a $0.11 loss per share a year earlier. This turnaround underscores effective cost management and operational efficiency. The EPS result reflects a strong performance, signaling improved financial health.

Price Action

Following the earnings report, 8x8’s stock price surged 7.84% during the latest trading day, 18.28% for the week, and 7.84% month-to-date. The upward momentum aligns with the company’s improved financial results and positive guidance.

Post-Earnings Price Action Review

The stock’s performance post-earnings highlights investor confidence in 8x8’s strategic direction and financial recovery. Despite a 19.5% decline year-to-date, the recent gains suggest renewed optimism. Analysts note that the company’s focus on AI integration and product-led growth could further drive long-term value.

CEO Commentary

Samuel Wilson, CEO of 8x8, emphasized progress against strategic priorities, including AI integration and expansion of product offerings. The CEO highlighted record usage of the CX platform and the launch of 8x8 Workforce Management, which is offered free to contact center customers.

Guidance

8x8 provided updated guidance for Q3 2026, with service revenue projected between $172 million and $177 million, and total revenue expected between $177 million and $182 million. For FY 2026, service revenue is forecasted to range from $692 million to $706 million, with total revenue between $712 million and $726 million.

Additional News

Recent developments include Rosenblatt Securities reiterating a “buy” rating with a $2.50 price target, while Morgan Stanley and Weiss Ratings issued mixed guidance. Institutional investors, including Bank of America and JPMorgan Chase, increased their stakes in the company, signaling confidence in its long-term potential. Additionally, 8x8’s AI-driven innovations and product launches, such as the 8x8 App Store, are positioned to enhance customer engagement and market share.

The company’s strategic focus on AI and product-led growth is expected to drive future revenue streams and operational efficiency. Analysts remain divided, with three “Buy” ratings and four “Sell” ratings, but the updated guidance and improved profitability suggest a path to sustained growth.