8×8 has delivered its second consecutive quarter of year-over-year revenue growth, with Q2 fiscal 2026 results surpassing expectations and demonstrating that the company’s turnaround strategy is gaining real traction.
Total revenue reached $184.1 million—$4 million above guidance and marking 1.7% year-over-year growth.
More impressively, service revenue grew 2.3% year-over-year to $179.1 million, or nearly 6% when excluding legacy Fuse customers.
This performance builds on Q1’s milestone return to growth after nine quarters of decline, suggesting 8×8 has managed to put itself on the right trajectory. But what’s driving this momentum?
The Usage Revenue Shift
One of the most significant factors behind 8×8’s growth is the dramatic expansion of usage-based revenue. This now accounts for approximately 19% of service revenue, up from 13% the previous year.
The shift reflects deeper customer engagement with 8×8’s platform, particularly its communications APIs and consumption-based offerings.
As CFO Kevin Kraus explained during the earnings call, “The impact is primarily driven by volume rather than price changes.”
Higher usage signals that customers are embedding 8×8 more deeply into their operations, creating stickier relationships and more predictable growth.
The company’s CPaaS (Communications Platform as a Service) offerings deserve particular attention here. In Q1, 8×8 reported that communications API customer interactions grew more than 39% year-over-year, with messaging interactions via platforms such as WhatsApp, RCS, and Viber surging 220%.
This momentum appears to have carried into Q2, driving the substantial increase in usage-based revenue.
Strategic Partnerships Expanding Market Reach
8×8’s Q2 success also reflects the company’s efforts to extend its global footprint through strategic partnerships.
The partnership with Wavenet—described as 8×8’s first European strategic partnership of its kind—positions the company to accelerate growth in the UK and broader European markets.
Through this partnership, Wavenet delivers the 8×8 platform for CX, including 8×8 Voice for Microsoft Teams, 8×8 Unified Communications, 8×8 CPaaS solutions, and 8×8 Contact Center.
Given that CEO Samuel Wilson acknowledged the international business is growing faster than U.S. operations, this partnership couldn’t be better timed.
Equally important is the collaboration with ULAP Networks, which helps 8×8 deliver compliant, sovereign-ready connectivity in complex jurisdictions.
AI as a Platform-Wide Differentiator
One of 8×8’s biggest drivers in recent quarters has been its aggressive push into AI.
The platform’s AI capabilities span real-time agent coaching, sentiment analysis, omnichannel authentication, and multilingual smart summaries.
It also introduced multiple enhancements across its CX platform, which converges contact center, unified communications, and communications APIs into a single AI-enabled solution.
This aggressive push into AI contributed to a 75% year-over-year increase in 8×8 Intelligent Customer Assistant contracts in FY26 Q1.
Financial Discipline Supports Innovation Investment
Beyond revenue growth, 8×8’s improving profitability provides the flexibility to invest in innovation without compromising financial stability.
Operating income reached $17.3 million with a 9.4% operating margin. The company generated $8.8 million in cash flow from operations and reduced debt by another $10 million during the quarter, bringing total debt reduction to $224 million since August 2022.
Looking Ahead
8×8’s Q2 results demonstrate that its multi-pronged strategy—expanding usage, forging partnerships, and embedding AI—is working.
While two consecutive quarters of growth are encouraging, they don’t guarantee long-term success.
They do, however, suggest 8×8 has found a formula that resonates with enterprise buyers seeking integrated, AI-powered customer experience platforms.
If the company continues executing on partnerships while driving adoption of its intelligent automation tools, this turnaround story may still be in its early chapters.
