On Tuesday, Barclays (LON:BARC) made adjustments to its expectations for 8x8 Inc . (NASDAQ:EGHT), a provider of cloud communications and customer engagement solutions. The firm's analyst lifted the price target on the stock to $2.50 from the previous $2.00 while keeping an Equal-weight rating on the shares.
The analyst's decision came after reviewing 8x8's second-quarter financial performance in 2025, which showed an encouraging quarter-over-quarter growth in Service revenue. The company's management attributed the better-than-expected results to several factors, including new enterprise customers, particularly those incorporating Contact Center as a Service (CCaaS) in their initial commitments.
Additionally, 8x8's Communications Platform as a Service (CPaaS) segment demonstrated robust performance. The company's recent product launches also contributed to the positive momentum. These developments have been pivotal in the company's ongoing success.
Despite the positive aspects, 8x8 slightly reduced its full-year 2025 revenue guidance by approximately $0.5 million at the midpoint. This revision is believed to stem from uncertainties surrounding the migration of customers from Fuze, a company 8x8 acquired to expand its cloud communication services.
Barclays also noted that 8x8 is effectively leveraging its partnership with Microsoft (NASDAQ:MSFT) Teams to enhance its Unified Communications as a Service (UCaaS) and CCaaS offerings. This strategic move is seen as a significant opportunity for 8x8 to increase its market share and drive further growth.
The adjustment in the price target reflects Barclays' recognition of these strategic initiatives and their potential impact on 8x8's financial trajectory.
In other recent news, 8x8 offered a positive Q3 revenue guidance of $177-182 million, in line with analyst expectations of $181 million. For the fiscal year 2025, the company predicts revenue between $714-727 million, closely matching the consensus estimate of $720 million.
The company also reported a 15th consecutive quarter of positive cash flow from operations, demonstrating its strengthening financial position. Over the past two years, 8x8 has managed to reduce its total debt by over $173 million, or 32%.
InvestingPro Insights
To provide additional context to Barclays' analysis of 8x8 Inc. (NASDAQ:EGHT), let's consider some real-time data and insights from InvestingPro. Despite the company's recent positive quarter-over-quarter growth in Service revenue, InvestingPro data shows that 8x8's overall revenue growth has been negative, with a -2.17% decline in the last twelve months as of Q1 2025. This aligns with the company's slight reduction in full-year 2025 revenue guidance mentioned in the article.
An InvestingPro Tip highlights that 8x8 has not been profitable over the last twelve months, which is reflected in its negative operating income of -$16.53 million for the same period. However, another InvestingPro Tip suggests that analysts predict the company will be profitable this year, potentially indicating a turnaround in financial performance.
The stock's recent performance has been volatile, with a significant 10.48% return over the last week, as noted by InvestingPro. This volatility could be attributed to the market's reaction to the company's recent financial results and strategic initiatives, such as the Microsoft Teams partnership mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for 8x8 Inc., providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.