8x8 Raises Fiscal 2027 Outlook After Record Quarter

The Tip Desk · November 4, 2026 · 4 min read

Second-quarter revenue reached a record $192.0 million as the company lifted its full-year fiscal 2027 revenue, profitability and cash-flow ranges.

8x8, Inc. (EGHT), a global business communications platform provider, reported record total revenue of $192.0 million for the second quarter of fiscal 2027 ended September 30, 2026, up 4% from $184.1 million a year earlier, and said second-quarter results exceeded its guidance ranges for revenue, cash flow from operations and non-GAAP operating margin.

The year-over-year pace slowed from the 5% increase to $190.2 million in the first quarter of fiscal 2027. Service revenue, the bulk of the business, rose 5% to $187.8 million, matching the prior quarter’s 5% year-over-year rate. Chief Executive Officer Samuel Wilson said the company delivered its sixth consecutive quarter of year-over-year revenue growth and that the second-quarter outperformance led to a higher full-year outlook for revenue, profitability and operating cash flow.

GAAP gross margin was 60%, compared with 65% a year earlier. Non-GAAP gross margin was 60%, versus 66%. GAAP operating income was $6.9 million, up from $5.3 million a year earlier. Non-GAAP operating income was $20.7 million, compared with $17.3 million. GAAP net income was $3.4 million, or $0.02 a share, versus $0.8 million, or $0.01 a share, a year earlier. Non-GAAP net income was $17.6 million, or $0.12 a share, versus $13.1 million, or $0.09 a share.

The company recorded a $2.9 million impairment of long-lived assets related to partially ceasing use of its headquarters in the three months ended September 30, 2026. Cash provided by operating activities was $13.1 million, up from $8.8 million a year earlier. Cash, cash equivalents and restricted cash were $102.6 million on September 30, 2026. Total principal amount of debt outstanding was $309.4 million.

Management said it continues to execute against a financial model designed to support long-term value creation, with a focus on generating cash and allocating capital with discipline. Chief Financial Officer Kevin Kraus said the increased full-year outlook incorporates second-quarter outperformance and a measured view of the second half of fiscal 2027 as the revenue mix continues to evolve. In early October, the company repaid another $12.5 million of term loan principal, reducing remaining term-loan principal to $95.0 million. Kraus said consistent cash generation and progress in reducing debt support efforts to refinance ahead of the August 2027 term loan maturity.

For the third quarter of fiscal 2027 ending December 31, 2026, 8x8 expects total revenue of $188 million to $192 million and service revenue of $184 million to $188 million. Non-GAAP gross margin is expected in the range of 58.0% to 60.0%, and non-GAAP operating margin in the range of 8.0% to 10.0%. Contractual interest expense is expected at approximately $3.7 million, with cash interest payments of approximately $1.7 million. Non-GAAP net income is expected at $0.08 to $0.09 a share, diluted, based on a fully-diluted weighted-average share count of approximately 150 million shares. Cash flow from operations is expected in the range of $11 million to $13 million.

For fiscal 2027 ending March 31, 2027, the company now expects total revenue of $750 million to $770 million and service revenue of $732 million to $752 million. Non-GAAP gross margin is expected in the range of 59.7% to 60.2%, and non-GAAP operating margin in the range of 9.1% to 10.1%. Non-GAAP net income is expected at $0.36 to $0.40 a share, diluted, on the same approximately 150 million share count. Cash flow from operations is expected in the range of $49 million to $54 million.

Wilson said AI is increasing the value of the conversations the company already powers and that the global voice network, unified platform and native AI development environment position 8x8 to capture that opportunity. The company said adoption of AI solutions continues to accelerate as customers use AI Studio to build AI-based customer-experience solutions. Recent platform updates included Customer 360 in Agent Workspace, AI Studio agents across voice, SMS, WhatsApp, 8x8 Work and web, JourneyIQ on the 8x8 App Store, an 8x8 for Salesforce Chrome Extension, Call as Company, RCS Business Messaging in Singapore through Singtel, and Microsoft certification for session border controller technology for Direct Routing and Operator Connect.