8x8 EGHT shares have plunged 23.4% in the trailing 12-month period, outperforming the Zacks Computer & Technology sector’s return of 27.1% and the Zacks Internet Software industry’s appreciation of 31.5%.

This global provider of cloud-based contact center as-a-service (CCaaS) and unified communications-as-a-service (UCaaS) software has underperformed its closest peers, such as Zoom Communications ZM, RingCentral RNG and Twilio TWLO, over the same timeframe. 

While TWLO and ZM shares have appreciated 52.7% and 13.9%, respectively, RNG has declined 5.7%.

EGHT Stock’s One-Year Performance

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EGHT has been suffering from challenging macroeconomic conditions and stiff competition despite the company’s expanding AI-powered portfolio.

8X8 expects third-quarter fiscal 2025 revenues between $177 million and $182 million, with service revenues in the $171-$174 million range, driven by a strong portfolio.

For fiscal 2025, 8X8 expects revenues between $714 million and $727 million, with service revenues in the $690-$701 million range.

EGHT’s Estimate Revision Shows Mixed Trend

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at 34 cents per share, unchanged over the past 30 days, but indicates a 27.66% year-over-year decline.

The consensus mark for 2025 revenues is pegged at $719.94 million, indicating a 1.2% year-over-year decrease.
 

EGHT’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 11.70%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at 41 cents per share, unchanged over the past 30 days, but indicates a 22.06% increase over fiscal 2025.

The consensus mark for fiscal 2026 revenues is pegged at $738.08 million, indicating a 2.51% year-over-year increase.

EGHT Stock is Trading at a Discount

8x8 stock is cheap, as suggested by the Value Score of B.

In terms of the forward 12-month Price/Sales, EGHT is trading at 0.48X, lower than the broader sector’s 7.03X. It is also trading at a discount compared with NICE’s 3.46X, RNG’s 1.19X and ZM’s 5.08X.

P/S Ratio (F12M)

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8x8 shares are trading above the 200-day moving average, indicating a bullish trend.

EGHT Shares Trade Above 200-Day SMA

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EGHT’s Prospects Ride on Strong AI-Powered Portfolio

EGHT’s prospects are bright, given an expanding AI-powered portfolio. In the fiscal second quarter, the company announced the availability of 8x8 Active Assessor, an expanded availability of Video Elevation capabilities for 8x8 Contact Center, and extended AI-enabled interaction summarization capabilities across the 8x8 Platform.

8x8 Active Assessor is an AI-powered housing association solution. Video Elevation capabilities for the 8x8 Contact Center now enable contact center agents to visually diagnose and resolve issues. The extended AI-enabled interaction summarization capabilities will enable contact center agents to deliver more personalized interactions and faster wrap-up times.

8x8 is investing in AI insights that assess the full CX deployment by identifying operational optimizations across both human and AI. It is integrating AI-based solutions seamlessly into its existing CX solutions. Expanding AI consulting services is a key catalyst.

Accelerating usage of AI tools is helping 8x8 win new logos, which increased as a percentage of bookings in the fiscal second quarter. The majority of its top 20 new logo deals included CCaaS solutions. Increasing customer loyalty and reduced customer churn is expected to drive top-line growth.

8x8 has doubled the number of supported languages for live web chats and expanded text-to-speech capabilities to offer support for more than 40 languages. These initiatives are expected to boost users’ efficiency, employee productivity and customer satisfaction.

Rich Partner Base to Boost EGHT’s Top Line

8x8’s expanding partner base is noteworthy. Its integration with Microsoft Teams has been a key catalyst. EGHT offers one of the broadest sets of enterprise voice integrations with Microsoft Teams. It also includes 8x8 Operator Connect and 8x8 Voice for Microsoft Teams. 8x8 currently supports more than 500,000 Teams users.

Regal.io has joined the 8x8 Technology Partner Ecosystem, which combines Regal.io's sophisticated sales dialing capabilities with 8x8’s comprehensive cloud contact center and unified communications platform.

EGHT is partnering with Descope, a drag-and-drop customer identity and access management platform. Descope’s no-code visual workflows enable businesses to help users authenticate, authorize, and add identity management into any app, preventing fraud and bot attacks.

Conclusion

8x8’s expanding AI-powered portfolio, along with a strong partner base, are major growth drivers. A cheap valuation is noteworthy. Hence, investors who already own the stock may expect the company's growth prospects to be rewarding over the long term.

8x8 currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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8x8 Inc (EGHT) : Free Stock Analysis Report

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