Why 8x8 Stock is Skyrocketing Today
Key Points
Management's fourth-quarter guidance came in well above Wall Street's forecasts.
Despite the big jump, 8x8 trades at just 6.8 times forward earnings.
- 10 stocks we like better than 8x8 ›
8x8 (NASDAQ: EGHT) is having a fantastic day. Following a great earnings report, the cloud-based communication specialist's stock peaked with a 54.8% gain near 11 a.m. ET. It's a welcome jump, too. 8x8's shares are now trading at prices not seen since March 2025.
8x8's earnings blew past expectations
In the third quarter of fiscal year 2026, 8x8's revenue rose 3.4% year over year to $185 million. Adjusted earnings increased from $0.11 to $0.12 per diluted share. Your average analyst firm would have settled for earnings near $0.09 per share on sales in the neighborhood of $180 million. Management also issued fourth-quarter guidance that is significantly above the current Street view.
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The business momentum looks real
8x8 reported strong demand for its full suite of business communications services, and all customers from the 2021 Fuze acquisition have been moved to the core 8x8 platform. Fixed subscription fees have been replaced by usage-based fees -- the more you use 8x8's products, the more you pay -- and clients are embracing the company's voice-driven artificial intelligence (AI) tools.
This business is firing on all cylinders right now, making last year's sell-off look overdone. And it's not too late to take advantage of the recent market discounts, even after Wednesday's lofty jump. The stock trades at just 6.8 times forward earnings estimates and 8.2 times reported free cash flow.
I'm not saying you should load up on this rarely discussed digital communications stock, but 8x8 deserves a second look from both growth investors and value hounds.
Should you buy stock in 8x8 right now?
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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