8x8 Q4 revenue rises driven by AI and communications APIs

8x8

19/05/2026 21:17

Overview

Business communications platform's Q4 revenue rose 5% yr/yr, beating analyst expectations

Company achieved GAAP profitability for the quarter and full fiscal year

Q4 usage-based revenue grew more than 70% yr/yr, driven by AI and communications APIs

Outlook

8x8 sees Q1 service revenue between $175 mln and $180 mln

Company expects FY27 total revenue of $727 mln to $747 mln

8x8 says outlook reflects macro and geopolitical uncertainty and shift toward usage-based revenue

Result Drivers

USAGE-BASED REVENUE - Co said Q4 usage-based revenue grew more than 70% yr/yr, driven by demand for AI and communications APIs

PLATFORM INNOVATION - Co cited introduction of native agentic AI capabilities, launch of 8x8 Engage, and expanded analytics tools as supporting results

REVENUE MIX SHIFT - Management said results reflect a continued shift toward usage-based revenue tied to AI adoption and communications APIs

Company press release: ID:nBw8kw7WZa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$185.24 mln
$181.12 mln (3 Analysts)
Q4 Net Income
$106,000
Q4 Adjusted Operating Income
Beat
$19.76 mln
$15.70 mln (2 Analysts)
Q4 Operating Income
$3.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 $2.00, about 16.3% below its May 18 closing price of $2.39

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

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.)