8x8 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 8x8 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 8x8'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 8x8'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 8x8 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, 8x8 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
8x8's Q2 success also reflects the company's efforts to extend its global footprint through strategic partnerships.
The partnership with Wavenet—described as 8x8'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 8x8 platform for CX, including 8x8 Voice for Microsoft Teams, 8x8 Unified Communications, 8x8 CPaaS solutions, and 8x8 Contact Center.
