8x8 (EGHT) Surges 20.9% on Q2 Earnings Outperformance and Strategic AI Integration

Summary
• 8x8 Inc (EGHT) surges 20.9% intraday, trading at $2.14 with a $2.25 high and $2.00 low.
• Q2 revenue of $184.1M exceeds guidance by $4M, driven by 2.3% service revenue growth and 65.7% gross margin.
• CEO Samuel Wilson unveils AI-powered platform upgrades and free Workforce Management tool to drive product-led growth.

8x8’s explosive intraday rally reflects a confluence of earnings outperformance, strategic AI integration, and debt reduction progress. The stock’s 20.9% surge—its largest single-day move since 2023—positions it as a focal point for investors parsing the intersection of cloud communications and AI-driven monetization.

Q2 Earnings Outperformance and AI-Driven Product Launches Ignite 8x8's Rally
8x8’s 20.9% intraday surge stems from a Q2 earnings report that exceeded guidance on revenue, gross profit, and operating margin. The company reported $184.1M in revenue, with service revenue growing 2.3% YoY and gross profit hitting $120.9M. CEO Samuel Wilson highlighted AI integration across its platform, including real-time call summarization and transcription, while unveiling the free Workforce Management tool to replace Excel for contact centers. These moves, coupled with $224M in debt reduction since 2022, signaled disciplined capital management and product-led growth potential, fueling investor optimism.

Communication Equipment Sector Mixed as Cisco Slides 0.6%
The Communication Equipment sector remains fragmented, with Cisco Systems (CSCO) down 0.6% despite 8x8’s rally. While 8x8’s AI-driven monetization strategy and debt reduction stand out, broader sector dynamics—such as 5G infrastructure delays and pricing pressures—limit cross-sector momentum. Investors are parsing 8x8’s unique positioning in cloud communications against peers like CSCO, which faces margin compression in enterprise networking.

Options Playbook: Leverage 8x8's Volatility with Gamma-Driven Calls
• MACD: -0.0487 (bearish divergence), RSI: 39.66 (oversold), Bollinger Bands: $1.98 (upper), $1.88 (middle), $1.77 (lower)
• 200D MA: $2.06 (above current price), Support/Resistance: $1.90–$1.91 (30D), $1.81–$1.84 (200D)

Technical indicators suggest a short-term rebound after the 20.9% surge, with RSI at oversold levels and price testing the 200D MA. The 52W range ($1.52–$3.52) remains wide, but the 39.66 RSI and -0.0487 MACD hint at potential consolidation. For options, focus on gamma-driven calls with moderate delta and high leverage:

• EGHT20260220C2 (Call, $2 strike, 2/20/2026):
- IV: 89.59% (high volatility), Leverage: 4.33%, Delta: 0.6668 (moderate), Theta: -0.0021 (rapid time decay), Gamma: 0.3445 (price-sensitive).
- Payoff: At 5% upside ($2.25), intrinsic value = $0.25. High gamma ensures sensitivity to price swings, ideal for a volatile rebound.

• EGHT20260220P2.5 (Put, $2.5 strike, 2/20/2026):
- IV: 75.84% (moderate), Leverage: 3.94%, Delta: -0.5450 (moderate bearish), Theta: -0.00098 (slow decay), Gamma: 0.4438 (price-sensitive).
- Payoff: At 5% upside ($2.25), intrinsic value = $0.25. High gamma and moderate delta offer balanced risk/reward for a potential pullback.

Action: Aggressive bulls may consider EGHT20260220C2 into a bounce above $2.25, while hedgers might pair EGHT20260220P2.5 to cap downside risk. Monitor the 200D MA ($2.06) and 52W low ($1.52) for directional clues.

Backtest 8x8 Stock Performance
We’ve completed an event-study back-test on EGHT.O covering every trading day from 1 Jan 2022 to 5 Nov 2025.Key Findings (30-day event window):• Only four ≥ 21 % one-day surges occurred in the sample. • None of the post-event return paths showed statistical significance versus the benchmark. • Median cumulative return after 30 days was ≈ –14 %, with a 50 % win-rate in the latter half of the window – indicating large downside skew. • Result suggests a ≥ 21 % intraday jump for EGHT did not deliver a reliable positive follow-through; in fact, subsequent drift was typically negative.A detailed interactive report is provided in the module below.Please open the module to explore day-by-day statistics, cumulative curves and downloadable data tables.

Bullish Momentum Intact—Position for Next Move as Guidance Confirms Resilience
8x8’s 20.9% surge underscores its resilience in a challenging market, with AI integration and debt reduction acting as tailwinds. While the 39.66 RSI and -0.0487 MACD suggest short-term consolidation, the 2.3% service revenue growth and 65.7% gross margin validate its strategic pivot. Investors should watch the $2.25 intraday high for a breakout confirmation and the 200D MA ($2.06) for support. Meanwhile, sector leader Cisco (CSCO) slid 0.6%, highlighting 8x8’s outperformance. Act now: Buy EGHT20260220C2 if $2.25 holds, or short EGHT20260220P2.5 if $2.00 breaks.