8x8's Platform Popularity Boosts Revenue but Lowers Margins, Wedbush Says

MT Newswires Live11-06

8x8 (EGHT) delivered a fiscal Q2 revenue beat driven by record usage of its CX platform and momentum for artificial intelligence solutions, Wedbush Securities said in a note Wednesday.

Management raised its fiscal 2026 revenue and earnings per share guidance, but trimmed gross margin guidance as it continues integrating Fuze customers and investing in AI features, Wedbush said.

Analysts attributed the lower gross margin guidance to rapid growth in the company's communications platform, which carries a lower margin.

The company expects fiscal 2026 revenue of $712 million to $726 million and an operating margin of 8.5% to 9.5%.

The firm said API messaging and AI assistant products saw strong adoption while customers using three or more 8x8 products now make up over a third of recurring revenue.

Wedbush maintained a neutral rating on 8x8 and a $3 price target.

Price: 2.16, Change: +0.39, Percent Change: +21.75

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