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CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the fourth quarter and fiscal year 2026 ended March 31, 2026.

“Fiscal 2026 marked a turning point for 8x8. We delivered four consecutive quarters of revenue growth, achieved our first GAAP-profitable full fiscal year since 2015, strengthened our balance sheet, and continued expanding our platform capabilities for an era of AI-driven customer engagement,” said Samuel Wilson, Chief Executive Officer at 8x8, Inc. “As AI reshapes enterprise communications, organizations require open, integrated platforms capable of orchestrating trusted interactions across voice, messaging, APIs, workflows, and AI-driven engagement at global scale.

“AI is changing the architecture and economics of customer engagement in real time,” Wilson continued. “The challenge is delivering interactions that are trusted, intelligent, seamless, and scalable across both human and AI-driven engagement. More than 5 billion digital interactions flowed across 8x8 communication APIs during fiscal 2026, and that scale, combined with our global communications infrastructure and open AI architecture, positions us favorably for the next generation of customer engagement. Customers do not want to be locked into yesterday’s AI model or a closed ecosystem. They want agile, open platforms that can evolve as quickly as innovation itself while helping them deliver better customer experiences, build trust, and strengthen customer loyalty. This is what we are building.”

Fiscal Year 2026 Financial Results:

Total revenue increased 3% to $735.8 million, compared to $715.1 million in fiscal 2025. Service revenue increased 3% to $715.3 million, compared to $692.9 million in fiscal 2025. GAAP operating income was $18.9 million, an increase of 25% compared to GAAP operating income of $15.2 million in fiscal 2025. Non-GAAP operating profit was $75.1 million, a decrease of 4% compared to non-GAAP operating profit of $78.4 million in fiscal 2025. GAAP net income was $1.6 million, compared to GAAP net loss of $27.2 million in fiscal 2025. Non-GAAP net income was $57.5 million, compared to non-GAAP net income of $48.3 million in fiscal 2025. Cash provided by operating activities was $55.8 million, compared to $63.6 million in fiscal 2025. Fourth Quarter Fiscal 2026 Financial Results:

Total revenue increased 5% to $185.2 million, compared to $177.0 million in the fourth quarter of fiscal 2025. Service revenue increased 5% to $180.2 million, compared to $171.6 million in the fourth quarter of fiscal 2025. GAAP gross margin was 63%, compared to 68% in the same period last year. Non-GAAP gross margin was 64%, compared to 69% in the same period last year. GAAP operating income was $3.3 million, compared to GAAP operating income of $0.4 million in the fourth quarter of fiscal 2025. Non-GAAP operating income was $19.8 million, compared to non-GAAP operating income of $17.7 million in the fourth quarter of fiscal 2025. GAAP net income was $0.1 million, compared to GAAP net loss of $5.4 million in the fourth quarter of fiscal 2025. Non-GAAP net income was $16.6 million, compared to non-GAAP net income of $11.3 million in the fourth quarter of fiscal 2025. Cash provided by operating activities was $14.4 million for the fourth quarter of fiscal 2026, compared to $5.9 million in the same period last year. Cash, cash equivalents, and restricted cash were $95.0 million on March 31, 2026, compared to $89.3 million on March 31, 2025. The cash, cash equivalents, and restricted cash balance on March 31, 2026 reflects principal payments of $30.0 million on the Term Loan during fiscal 2026. Total principal amount of debt outstanding on March 31, 2026 was $323.9 million, compared to $353.9 million at the end of fiscal 2025. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to non-GAAP measures is included in the supplemental reconciliation at the end of this release.

Recent Business Highlights:

Platform Innovation Highlights

8x8 continued to focus on closing the operational gaps that most commonly stall CX and IT teams with new capabilities added to the 8x8 Platform for CX. Recent innovations include:

8x8 AI Studio, a modern AI development environment now in early availability, lets organizations use natural language to build, test, deploy, and manage AI agents and agentic workflows natively on the 8x8 Platform on the channels they already use, without new infrastructure or additional vendors. 8x8 Integration SDK, Now Generally Available: Technology partners and customers can build, deploy, and scale CRM integrations – including homegrown and industry-specific platforms – directly into the 8x8 Platform without requiring a standard professional services engagement. New Dashboards in 8x8 Work Analytics: IT teams gain live visibility into call queues, call quality, unreturned calls, and device health, replacing static reports that surfaced problems after the fact. 8x8 Engage™, Now Generally Available: a purpose-built solution that extends CX-grade tools, AI-powered insights, and unified voice and digital engagement to customer-facing teams outside the contact center. 8x8 Focus Time Metrics: When agents handle multiple simultaneous digital interactions, supervisors have no reliable way to know where attention is going. Focus Time Metrics tracks how agents distribute focus across concurrent conversations, including duration and frequency per interaction, so supervisors can coach on actual behavior and staff appropriately for digital volume. 8x8 Silent Mobile Authentication, Now Generally Available: Verifies users in the background using carrier network intelligence via GSMA Open Gateway; no code to enter, no step to complete. Reduces login abandonment and credential exposure, and addresses vulnerabilities one-time passcodes cannot, including SIM-swap and phishing. Available globally through 8x8's carrier network. Industry Recognition

Won Gold in the User Experience (UX) - Product UX category at the 2026 New York Product Design Awards for 8x8 Engage. Recognized across five categories in the 24th Annual American Business Awards, including Gold Stevie Awards for Customer Service Team of the Year and Achievement in Management, Telecommunications. In the past three years, 8x8 has been recognized with 21 Stevie Awards. Named a Leader in the IDC MarketScape: Worldwide Communications Engagement Platform 2026 Vendor Assessment. Named a Leader in the Omdia Universe: Customer Engagement Platforms, 2026. 8x8 was named a Strong Performer in the Gartner® Peer Insights™ “Voice of the Customer” for Unified Communications as a Service. Named a Metrigy 2026 MetriStar Top Provider winner for both CCaaS and CPaaS Platforms. Chief Marketing Officer Bruno Bertini won Gold in the Noble Awards in the category of Executives & Professionals - Outstanding Chief Marketing Officer (CMO). First Quarter and Fiscal 2027 Financial Outlook

Management provides expected ranges for total revenue, service revenue, non-GAAP operating margin, non-GAAP net income per share, diluted, and cash flow from operations based on its evaluation of the current business environment. The Company emphasizes that these expectations are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.

“Our guidance reflects both the macro and geopolitical uncertainty in the current environment and a continued mix shift toward usage-based revenue, the part of our business tied to AI adoption and communications APIs, where customer demand is strongest,” said Kevin Kraus, Chief Financial Officer at 8x8, Inc. “We expect this shift to continue and we are actively working to expand gross margins within this portfolio. As the usage business scales, we believe it supports our ability to grow operating income in dollars and strengthen cash flow over time.”

First Quarter Fiscal 2027 Ending June 30, 2026

Service revenue in the range of $175 million to $180 million. Total revenue in the range of $180 million to $185 million. Non-GAAP gross margin in the range of approximately 63.5% to 64.5%. Non-GAAP operating margin in the range of approximately 8.5% to 9.5%. Interest expense of approximately $3.9 million. Cash interest of approximately $1.8 million. Non-GAAP net income per share, diluted, in the range of $0.08 to $0.09, based on a fully-diluted weighted-average share count of approximately 147 million shares. Cash flow from operations in the range of $10 million to $12 million. Fiscal Year 2027 Ending March 31, 2027

Service revenue in the range of $707 million to $727 million. Total revenue in the range of $727 million to $747 million. Non-GAAP gross margin in the range of 62.5% to 63.5%. Non-GAAP operating margin in the range of 9.0% to 10.0%. Non-GAAP net income per share, diluted, in the range of $0.33 and $0.38, based on a fully-diluted weighted-average share count of approximately 150 million shares. Cash flow from operations between $45 million and $52 million. The Company does not reconcile its forward-looking estimates of non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin or non-GAAP net income per share, basic and diluted, to the corresponding GAAP measure of GAAP net income (loss) per share due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by these metrics. For example, future hiring and employee turnover may not be reasonably predictable, stock-based compensation expense depends on variables that are largely not within the control of nor predictable by management, such as the market price of 8x8 common stock, and may also be significantly impacted by events like acquisitions, the timing and nature of which are difficult to predict with accuracy. The actual amounts of these excluded items could have a significant impact on the Company's GAAP operating margin and GAAP net income (loss) per share, basic and diluted. Accordingly, management believes that reconciliations of these forward-looking non-GAAP financial measures to their corresponding GAAP measures are not available without unreasonable effort. See the “Explanation of GAAP to Non-GAAP Reconciliation” below for the definition of non-GAAP operating margin and non-GAAP net income per share, basic and diluted.

All projections are on a non-GAAP basis. Additionally, our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we don't anticipate and may not achieve the desired outcome.

Conference Call Information:

Management will host a conference call to discuss earnings results on May 19, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call is expected to last approximately 60 minutes. Participants may:

Register to participate in the live call at https://register-conf.media-server.com/register/BIe9ccfd2c6e5440d8a50b7474cb3f76cc. Access the live webcast and replay from the Company’s investor relations events and presentations page at https://www.investors.8x8.com/news-events/events-presentations. Participants should plan to dial in or log on 10 minutes prior to the start time. The webcast will be archived on 8x8's website for a period of at least 30 days. For additional information, visit https://www.investors.8x8.com/.

About 8x8 Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience—combining Contact Center, Unified Communication, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Copyright 2026 8x8, Inc. 8x8, Engage and associated brand assets are trademarks of 8x8, Inc. All rights reserved. GARTNER and PEER INSIGHTS are registered trademarks and service marks of Gartner, Inc. and/or its affiliates. All rights reserved.

Caution Concerning Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: changing industry trends; market opportunities; the potential success and impact of our investments in artificial intelligence technologies; our ability to drive increased platform and multi-product adoption; our ability to increase profitability and cash flow; our position in the market and the direction of our innovation; the expected capabilities, availability and customer reception of our products and services and our financial outlook, revenue growth, and profitability.

You should not place undue reliance on such forward-looking statements. Actual results could differ materially from those projected in forward-looking statements depending on a variety of factors, including, but not limited to: customer adoption and demand for our products may be lower than we anticipate; the impact of economic downturns on us and our customers; ongoing volatility and conflict in the political environment; general inflationary pressures; competitive dynamics of the cloud communication and collaboration markets, including voice, contact center, video, messaging, and communication application programming interfaces, as well as our competitors' use of AI, in which we compete, may change in ways we are not anticipating; third parties may assert ownership rights in our IP, which may limit or prevent our continued use of the core technologies behind our solutions; our customer churn rate may be higher than we anticipate; and our investments in new products and acquisitions may not generate the revenue or efficiencies that we expect. As a result, we could fail to meet the revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year. Our increased emphasis on profitability and cash flow generation may not be successful; and the reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we do not anticipate and may not achieve the desired outcome.

For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Explanation of GAAP to Non-GAAP Reconciliation

The Company has provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these Non-GAAP financial measures internally to understand, manage, and evaluate the business, and to make operating decisions. Management believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management also believes that some of 8x8’s investors use these Non-GAAP financial measures as an additional tool in evaluating 8x8's "core operating performance" in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at the Company’s core operating performance provides consistency in period-to-period comparisons and trends.

These Non-GAAP financial measures may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits the usefulness of these measures for comparative purposes. Management recognizes that these Non-GAAP financial measures have limitations as analytical tools, including the fact that management must exercise judgment in determining which types of items to exclude from the Non-GAAP financial information. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures". Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows:

Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue

Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of intangible assets, stock-based compensation expense and related employer payroll taxes, certain legal and regulatory costs, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, certain legal and regulatory costs, and certain severance, transition and contract exit costs.

Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin

Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company’s investors benefit from understanding these adjustments and from an alternative view of the Company’s Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends.

Non-GAAP Operating Profit and Non-GAAP Operating Margin

Non-GAAP Operating Profit excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, certain legal and regulatory costs, and certain severance, transition and contract exit costs from Operating Profit. Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance.

Non-GAAP Net Income and Adjusted EBITDA

Non-GAAP Net Income excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, certain legal and regulatory costs, certain severance, transition and contract exit costs, amortization of debt discount and issuance cost, loss on debt extinguishment, gain or loss on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other income, net from non-GAAP net income. Management believes the Company’s investors benefit from understanding these adjustments and an alternative view of our net income performance as compared to prior periods and trends.

Non-GAAP Net Income Per Share – Basic and Non-GAAP Net Income Per Share - Diluted

Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income divided by the weighted-average basic shares outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP Net Income divided by the weighted-average diluted shares outstanding. Diluted shares outstanding include the effect of potentially dilutive securities from stock-based benefit plans and convertible senior notes. These potentially dilutive securities are excluded from the computation of net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. They are added for the computation of diluted net income per share on a non-GAAP basis in periods when 8x8 has net profit on a non-GAAP basis as their inclusion provides a better indication of 8x8’s underlying business performance. Management believes the Company’s investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company’s diluted net income per share as compared to prior periods and trends.

Management evaluates and makes decisions about its business operations based on Non-GAAP financial information by excluding items management does not consider to be “core costs” or “core proceeds.” Management believes some of its investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company’s operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Transaction-related costs consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, transaction and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts. Debt amortization expenses relate to the non-cash accretion of the debt discount.

8X8, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

  Three Months Ended March 31,

Years Ended March 31,

2026

2025

2026

2025

Service revenue

$

180,175

$

171,588

$

715,259

$

692,923

Other revenue

5,071

5,455

20,493

22,147

Total revenue

185,246

177,043

735,752

715,070

Cost of service revenue

61,566

49,818

232,602

200,094

Cost of other revenue

6,627

7,173

28,101

29,704

Total cost of revenue

68,193

56,991

260,703

229,798

Gross profit

117,053

120,052

475,049

485,272

Operating expenses:

Research and development

29,510

29,950

112,983

123,211

Sales and marketing

59,872

66,844

252,404

264,461

General and administrative

24,341

22,839

90,724

82,407

Total operating expenses

113,723

119,633

456,111

470,079

Income from operations

3,330

419

18,938

15,193

Interest expense

(4,368

)

(5,153

)

(17,765

)

(28,856

)

Other income (expense), net

1,010

(200

)

2,353

(10,400

)

Income (loss) before provision for income taxes

(28

)

(4,934

)

3,526

(24,063

)

Provision (benefit) for income taxes

(134

)

467

1,878

3,149

Net income (loss)

$

106

$

(5,401

)

$

1,648

$

(27,212

)

Net income (loss) per share:

Basic

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

Diluted

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

Weighted average number of shares:

Basic

140,141

132,877

137,669

129,767

Diluted

145,399

132,877

142,629

129,767

Comprehensive income (loss)

Net income (loss)

$

106

$

(5,401

)

$

1,648

$

(27,212

)

Unrealized gain (loss) on investments in securities

—

—

—

(5

)

Foreign currency translation adjustment

(2,226

)

3,759

2,907

2,447

Comprehensive income (loss)

$

(2,120

)

$

(1,642

)

$

4,555

$

(24,770

)

8X8, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

  March 31, 2026

March 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$

93,260

$

88,050

Restricted cash

1,702

462

Accounts receivable, net

57,004

49,680

Deferred contract acquisition costs

25,193

30,935

Other current assets

32,650

34,739

Total current assets

209,809

203,866

Property and equipment, net

45,821

47,919

Operating lease, right-of-use assets

26,672

33,508

Intangible assets, net

57,589

67,949

Goodwill

276,372

271,530

Restricted cash, non-current

—

812

Deferred contract acquisition costs, non-current

34,562

44,239

Other assets, non-current

11,996

13,354

Total assets

$

662,821

$

683,177

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

36,714

$

45,773

Accrued and other liabilities

69,867

63,025

Operating lease liabilities

10,357

11,102

Deferred revenue

36,699

37,751

Term loan, current

39,218

11,593

Total current liabilities

192,855

169,244

Operating lease liabilities, non-current

39,100

49,196

Deferred revenue, non-current

181

706

Convertible senior notes, non-current

199,830

198,790

Term loan

82,431

139,581

Other liabilities, non-current

1,815

3,456

Total liabilities

516,212

560,973

Stockholders' equity:

Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of March 31, 2026 and 2025

—

—

Common stock: $0.001 par value, 300,000 shares authorized, 141,164 shares and 134,355 shares issued and outstanding at March 31, 2026 and 2025, respectively

141

134

Additional paid-in capital

1,038,745

1,018,902

Accumulated other comprehensive loss

(6,204

)

(9,111

)

Accumulated deficit

(886,073

)

(887,721

)

Total stockholders' equity

146,609

122,204

Total liabilities and stockholders' equity

$

662,821

$

683,177

8X8, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

  Years Ended March 31,

2026

2025

Cash flows from operating activities:

Net income (loss)

$

1,648

$

(27,212

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation

6,609

7,387

Amortization of intangible assets

14,203

19,104

Amortization of capitalized internal-use software costs

11,456

12,729

Amortization of debt discount and issuance costs

1,369

2,466

Amortization of deferred contract acquisition costs

33,082

37,977

Allowance for credit losses

(438

)

1,843

Operating lease expense, net of accretion

10,868

11,631

Stock-based compensation expense

20,370

39,940

Loss on debt extinguishment

147

12,325

Gain on remeasurement of warrants

(864

)

(2,225

)

Other

(185

)

(346

)

Changes in assets and liabilities:

Accounts receivable, net

(5,771

)

7,845

Deferred contract acquisition costs

(17,108

)

(23,988

)

Other current and non-current assets

(450

)

(7,617

)

Accounts payable and accrued liabilities

(17,357

)

(24,810

)

Deferred revenue

(1,793

)

(3,495

)

Net cash provided by operating activities

55,786

63,554

Cash flows from investing activities:

Purchases of property and equipment

(3,675

)

(2,401

)

Capitalized internal-use software costs

(12,302

)

(11,066

)

Purchase of cost investment

—

(771

)

Maturities of investments

—

1,048

Business combination, net of cash acquired

(4,757

)

(3,234

)

Net cash used in investing activities

(20,734

)

(16,424

)

Cash flows from financing activities:

Proceeds from issuance of common stock under employee stock plans

2,829

3,692

Repurchase of common stock

(1,848

)

—

Payments for debt issuance and amendment costs

(70

)

(1,517

)

Repayment of principal on term loan

(30,000

)

(273,000

)

Gross proceeds from term loan

—

200,000

Other financing activities

(1,351

)

(4,281

)

Net cash used in financing activities

(30,440

)

(75,106

)

Effect of exchange rate changes on cash

1,026

577

Net increase (decrease) in cash, cash equivalents and restricted cash

5,638

(27,399

)

Cash, cash equivalents and restricted cash, beginning of year

89,324

116,723

Cash, cash equivalents and restricted cash, end of year

$

94,962

$

89,324

8X8, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

  Three Months Ended

Years Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Cost of Revenue:

GAAP cost of service revenue (as a percentage of service revenue)

$

61,566

34.2

%

$

49,818

29.0

%

$

232,602

32.5

%

$

200,094

28.9

%

Amortization of acquired intangible assets

(514

)

(824

)

(2,048

)

(7,176

)

Stock-based compensation expense and related employer payroll taxes

(377

)

(759

)

(1,852

)

(4,454

)

Legal and regulatory costs

—

—

—

55

Severance, transition and contract exit costs

(824

)

(81

)

(1,875

)

(655

)

Non-GAAP cost of service revenue (as a percentage of service revenue)

$

59,851

33.2

%

$

48,154

28.1

%

$

226,827

31.7

%

$

187,864

27.1

%

GAAP service revenue margin (as a percentage of service revenue)

$

118,609

65.8

%

$

121,770

71.0

%

$

482,657

67.5

%

$

492,829

71.1

%

Non-GAAP service revenue margin (as a percentage of service revenue)

$

120,324

66.8

%

$

123,434

71.9

%

$

488,432

68.3

%

$

505,059

72.9

%

GAAP cost of other revenue (as a percentage of other revenue)

$

6,627

130.7

%

$

7,173

131.5

%

$

28,101

137.1

%

$

29,704

134.1

%

Stock-based compensation expense and related employer payroll taxes

(79

)

(218

)

(397

)

(1,213

)

Legal and regulatory costs

—

—

—

62

Severance, transition and contract exit costs

(88

)

(195

)

(1,533

)

(581

)

Non-GAAP cost of other revenue (as a percentage of other revenue)

$

6,460

127.4

%

$

6,760

123.9

%

$

26,171

127.7

%

$

27,972

126.3

%

GAAP other revenue margin (as a percentage of other revenue)

$

(1,556

)

(30.7

)%

$

(1,718

)

(31.5

)%

$

(7,608

)

(37.1

)%

$

(7,557

)

(34.1

)%

Non-GAAP other revenue margin (as a percentage of other revenue)

$

(1,389

)

(27.4

)%

$

(1,305

)

(23.9

)%

$

(5,678

)

(27.7

)%

$

(5,825

)

(26.3

)%

GAAP gross margin (as a percentage of total revenue)

$

117,053

63.2

%

$

120,052

67.8

%

$

475,049

64.6

%

$

485,272

67.9

%

Non-GAAP gross margin (as a percentage of total revenue)

$

118,935

64.2

%

$

122,129

69.0

%

$

482,754

65.6

%

$

499,234

69.8

%

Operating Profit:

GAAP income from operations (as a percentage of total revenue)

$

3,330

1.8

%

$

419

0.2

%

$

18,938

2.6

%

$

15,193

2.1

%

Amortization of acquired intangible assets

3,616

3,808

14,203

19,104

Stock-based compensation expense and related employer payroll taxes

4,903

8,615

22,037

41,822

Transaction-related costs

3,249

541

3,445

1,101

Legal and regulatory costs(1)

648

102

3,127

(9,365

)

Severance, transition and contract exit costs

4,018

4,226

13,330

10,592

Non-GAAP operating profit (as a percentage of total revenue)

$

19,764

10.7

%

$

17,711

10.0

%

$

75,080

10.2

%

$

78,447

11.0

%

Net Income (Loss):

GAAP net income (loss) (as a percentage of total revenue)

$

106

0.1

%

$

(5,401

)

(3.1

)%

$

1,648

0.2

%

$

(27,212

)

(3.8

)%

Amortization of acquired intangible assets

3,616

3,808

14,203

19,104

Stock-based compensation expense and related employer payroll taxes

4,903

8,615

22,037

41,822

Transaction-related costs

3,249

541

3,445

1,101

Legal and regulatory costs(1)

648

102

3,127

(9,365

)

Severance, transition and contract exit costs

4,018

4,226

13,330

10,592

Amortization of debt discount and issuance cost

310

321

1,369

2,466

Loss on debt extinguishment

—

113

147

12,325

Gain on warrants remeasurement

(261

)

(1,028

)

(864

)

(2,225

)

Other income

—

—

(926

)

(348

)

Income tax expense effects, net (2)

—

—

—

—

Non-GAAP net income (as a percentage of total revenue)

$

16,589

9.0

%

$

11,297

6.4

%

$

57,516

7.8

%

$

48,260

6.7

%

Interest expense(3, 4)

4,058

4,832

17,322

26,390

Provision (benefit) for income taxes

(134

)

467

1,878

3,149

Depreciation

1,529

1,765

6,609

7,387

Amortization of capitalized internal-use software costs

2,852

2,748

11,456

12,729

Other expense (income), net

(749

)

1,115

(1,636

)

648

Adjusted EBITDA (as a percentage of total revenue)

$

24,145

13.0

%

$

22,224

12.6

%

$

93,145

12.7

%

$

98,563

13.8

%

Shares used in computing net income (loss) per share amounts:

Basic

140,141

132,877

137,669

129,767

Diluted

145,399

138,678

142,629

133,654

GAAP net income (loss) per share - Basic

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

GAAP net income (loss) per share - Diluted

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

Non-GAAP net income per share - Basic

$

0.12

$

0.09

$

0.42

$

0.37

Non-GAAP net income per share - Diluted

$

0.11

$

0.08

$

0.40

$

0.36

More News From 8x8, Inc.

8x8 (EGHT - Free Report) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +57.14%. A quarter ago, it was expected that this telecommunications services company would post earnings of $0.09 per share when it actually produced earnings of $0.12, delivering a surprise of +33.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

8x8, which belongs to the Zacks Internet - Software industry, posted revenues of $185.25 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.36%. This compares to year-ago revenues of $177.04 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

8x8 shares have added about 21.3% since the beginning of the year versus the S&P 500's gain of 8.1%.

What's Next for 8x8?While 8x8 has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for 8x8 was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $182.05 million in revenues for the coming quarter and $0.35 on $739.3 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, KANZHUN LIMITED Sponsored ADR (BZ - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 20.

This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +4.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

KANZHUN LIMITED Sponsored ADR's revenues are expected to be $302.37 million, up 14.1% from the year-ago quarter.

8x8, Inc. (EGHT) Q4 2026 Earnings Call Transcript

Annual awards recognize channel partners who drove the strongest revenue growth, new customer wins, and year-over-year performance in fiscal year 2026

CAMPBELL, Calif.--(BUSINESS WIRE)--The partners who earned 8x8's top channel honors this year did it the same way: new customers, real growth, and measurable results. 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, named its 2026 Partner Award winners across nine categories spanning contact center, unified communications, CPaaS, distribution, and technology partnerships. The awards recognize partners who drove the strongest revenue growth, net-new customer acquisition, and year-over-year performance during the fiscal year ended March 31, 2026.

The 8x8 Partner Awards are selected annually based on data weighted across total bookings, year-over-year growth rate, and net-new customer acquisitions. Winners are recognized across North America, EMEA, and ANZ.

"Our partners are at the heart of everything we do at 8x8, and this year's award winners represent the very best of what's possible when we go to market together,” said Emily Masterton, Global Head of Channel Sales at 8x8, Inc. “These are the teams who leaned in, pushed hard, and delivered real results for our joint customers. I'm incredibly proud to recognise them, and even more excited about what we're going to build together next."

2026 Award Winners

Agent Partner of the Year

North America: Optus EMEA: Softcat Resell Partner of the Year

North America: Spectrotel EMEA: Wavenet Partner of the Year - ANZ

Arrow Voice and Data Contact Center Partner of the Year

North America: UPSTACK EMEA: Wavenet Partner of the Year - 8x8 Consumption Model

Callmetrics Technology Solutions Distributor of the Year

North America: Intelisys EMEA: Avant Distributor of the Year

North America: Scansource EMEA: Nuvola Growth Partner of the Year

North America: Forge Technology Providers EMEA: Croft ANZ: Ignite Growth Technology Solution Distributor of the Year

AppDirect CX Excellence Technology Solution Distributor of the Year

Telarus Global Technology Partner of the Year

Capacity (formerly Creovai) Reseller Partner of the Year - CPaaS

Fazpass Rising Star Partner of the Year - CPaaS

One Depot The 8x8 Partner Program gives resellers, distributors, agents, and technology partners the tools, training, and support to build and grow a communications practice around the 8x8 Platform for CX. Partners access dedicated channel support, co-marketing resources, and a portfolio that spans contact center, unified communications, and CPaaS, allowing them to address a broad range of customer needs from a single platform. For more information on becoming an 8x8 partner, visit https://www.8x8.com/partners.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved.

More News From 8x8, Inc.

New Solution Combines Multi-Channel Reach, AI-Powered Orchestration, and Complete Audit Trail to Close the Enterprise Communication Gap for the 70% of Workers Without a Desk

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, has introduced 8x8 Resolve, a mobile-first critical communications and incident management solution purpose-built to reach deskless and distributed workers. The solution addresses a persistent gap that many traditional enterprise communication tools have struggled to solve: reliably notifying, tracking, and coordinating the warehouse staff, retail associates, field technicians, and healthcare aides who, according to a report from The Josh Bersin Company, make up an estimated 70% of the global workforce and who are typically the last to know when something goes wrong.

8x8 Resolve delivers alerts simultaneously across SMS, voice, WhatsApp, and the 8x8 Work mobile app, with no corporate email address, device, or app login required. When a critical event occurs, the solution is designed to automatically escalate across channels until each recipient acknowledges. Every event automatically generates a detailed, exportable communication log, giving incident responders, crisis management teams, HR, BCDR, compliance, and every stakeholder involved a complete, auditable record of every interaction. And when the dust settles, that same log becomes an invaluable resource for post-incident review and operational improvement.

The gap most tools miss

When a critical event strikes, a system outage, a safety incident, a building evacuation, most operations and incident managers discover that their communication stack fails them at exactly the wrong moment. Email rarely reaches the floor. Most messaging apps are built for desk workers. Manual call trees break down under pressure. Consumer WhatsApp groups offer limited audit trail capability and limited corporate oversight.

The workers most affected, those without a company-issued device or corporate identity in IT systems, are effectively unreachable through standard enterprise tools. 8x8 Resolve is designed specifically to reach these corporate digital orphans.

"We’ve spent decades over-tooling the C-suite while leaving the frontline to rot in a mess of manual call trees and ignored emails. In a world of infinite noise, messaging is one of the most effective things that actually moves the needle. By the time an email is read, the crisis has already evolved," said Dave Michels, Principal Analyst and Founder at TalkingPointz. "8x8 Resolve stops treating the deskless workforce like an afterthought, using the channels they actually check, SMS, and WhatsApp, to turn chaotic disruptions into orchestrated, audited responses."

How 8x8 Resolve works

8x8 Resolve covers the full incident lifecycle: detection, notification, acknowledgment, escalation, and resolution, in a single solution.

Broad employee reach: Alerts can go simultaneously across SMS, voice, WhatsApp, and the 8x8 Work mobile app. Workers without a corporate email address, company device, or app login can be reached on the phone they already carry. Automated escalation: When a message goes unread, 8x8 Resolve is designed to cascade to the next channel until acknowledgment is confirmed. Set it up once: Workflows trigger automatically via webhook or schedule, and recipient lists stay current through native sync with Microsoft Entra ID, Google Workspace, Okta, and Workday, no manual maintenance required. Employees as incident sensors: Conversational AI lets employees report incidents via SMS or WhatsApp. Structured data is captured without a separate app, form, or training. Exportable communication log: Every event automatically captures a full record of who was notified, on which channel, and when they responded, giving incident responders, crisis management teams, HR, BCDR, and compliance stakeholders a ready-made audit trail that eliminates post-incident reconstruction and supports operational review. Built for resilience: 8x8 Resolve operates independently of corporate email and is designed to remain available when other primary systems go down. Who it’s for

8x8 Resolve is built for incident and operations managers, IT leaders, and business continuity, safety, and compliance teams at mid-market and enterprise organizations, across healthcare, retail, education, utilities, logistics, and manufacturing. In regulated industries, documented notification trails aren't optional, and many current tools may not fully meet that requirement. “Despite an increase in enterprise risk management (ERM) ownership of business continuity management (BCM), rising from 23% in 2020 to 29% in 2025, an alarming 62% of heads of ERM admit that their current BCM plans fail to adequately prepare their organizations for potential disruptions," according to the Gartner® 2025 Resource Guide to Effective Business Continuity Management report1.

"Too many critical events still end with someone asking who got the message and who didn't,” said Hunter Middleton, Chief Product Officer at 8x8, Inc. “8x8 Resolve answers that question before it's asked. It is designed to reach every employee on whatever channel they are reachable on, escalates automatically until acknowledgment is confirmed, and produces a complete record of every step. From first alert to confirmed resolution, in one platform. For businesses with distributed or deskless workforces, that's the difference between managing an incident and being managed by one."

Availability

8x8 Resolve is available now for select 8x8 customers. Organizations that have struggled to reach deskless workers during a critical event or that face compliance obligations around documented emergency notification, are encouraged to reach out to their account manager or visit https://www.8x8.com/products/resolve.

8x8, Inc. is committed to the responsible use of artificial intelligence and the protection of customer data. The 8x8 Platform for CX is developed and operated in accordance with established security standards, applicable compliance frameworks, and internal governance policies, including privacy-by-design principles that safeguard personal data on the 8x8 platform. Full details are available at trust.8x8.com.

[1] Gartner Resource Guide to Effective Business Continuity Management, Enterprise Risk Management Research Team, 11 September 2025. GARTNER is a trademark of Gartner, Inc. and/or its affiliates.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the expected capabilities and availability of 8x8 Resolve. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. For a discussion of these risks and uncertainties, please refer to 8x8’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 8x8 assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

Copyright 2026 8x8, Inc. 8x8, 8x8 Resolve, 8x8 Work, and 8x8 Platform for CX and associated brand assets are trademarks or registered trademarks of 8x8, Inc. All rights reserved.

All third-party trademarks are the property of their respective owners.

More News From 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, introduced 8x8 Pulse, a conversational intelligence solution built on a different architectural premise: that intelligence should live where conversations happen, not in another layer of integrations bolted on top. 8x8 Pulse turns the conversations a business already generates into a working source of truth teams can act on, from the executive suite to the account manager. It runs on 8x8's native conversational data foundation, which ingests, governs, structures, and contextualizes business conversations so they can be trusted and used safely at enterprise scale.

Most of what a business actually knows about its customers and its operations lives in conversations the CRM and other traditional systems of record were not primarily designed to capture. What gets said in those conversations, and in the internal exchanges around them, carries the commitments, risks, and signals that influence decisions every day. That information has historically stayed scattered across recordings, transcripts, inboxes, and tickets, and the tools built to surface it tend to add integration overhead rather than serve it.

Inside many organizations, the CRO is managing forecast confidence on the basis of what someone remembered to log. The customer success leader is running Monday's team meeting largely on gut feel. The product leader is reconstructing the roadmap by stitching together voice-of-customer one chat thread at a time. The account manager is hunting for context before calls that may already exist somewhere in the system. Relationship context walks out the door when an account owner leaves.

8x8's conversational data foundation is built to change that pattern. It captures the conversations a business already has, including sales calls, customer success reviews, support escalations, executive briefings, partner check-ins, emails, internal chats, and support tickets, and pairs that signal with telemetry, CRM data, and financial context from across the business. Communication data flows natively from the 8x8 ecosystem and beyond, with governance, audit, and rights management built into the foundation itself. Answers trace back to the source conversations they came from, and identity is resolved across the systems a business already runs. 8x8 Pulse uses that foundation to surface the actual substance of what customers are saying, from product feedback to competitive intelligence to renewal signal, ready to be put to work. Anyone, from the CRO to the account manager, can ask in natural language and see exactly which conversation the answer came from.

“You don't search your own memory, the right thing just surfaces when you need it,” said Hunter Middleton, Chief Product Officer at 8x8, Inc. “Companies never had that. They had recordings nobody replays and knowledge that might walk out the door. 8x8 Pulse gives organizations a more human kind of memory: shared, in context, and traceable to the source. We can do this because we were there when the conversation happened, the calls, the meetings, the contact center interactions. We capture it at the source, governed from the first word. Every new conversation connects to the ones before it, the way memories link in your head. You can't bolt that on. You have to be there."

8x8 Pulse meets users in the way that fits their workflow. As a standalone solution, it serves as a dedicated workspace for leaders mining patterns across their business. As an assistant inside Salesforce, the Chrome browser, and 8x8 Work, it brings the same insight into the tools customers already use. As an email digest, it notifies users when key signals surface.

The gap 8x8 Pulse is built to close is measurable. According to Metrigy's Customer Experience Optimization: 2025-26 research study, not having or acting on customer feedback leads to a decline in customer service. At companies with worsening customer service, 32.1% of CX leaders admit they're not doing anything at all or not enough with customer feedback, even as analytics capabilities rank among the top transformation priorities for more than half of companies surveyed.

"CX leaders have more data than ever and less ability to act on it than they need," said Beth Schultz, VP of Research and Principal Analyst at Metrigy. "Complex layered architecture is a problem. With every additional intelligence layer comes integration lag, and by the time the signal surfaces, the conversation is often over. Placing the intelligence where the conversation is, as 8x8 does with Pulse, means fewer handoffs between interaction and insight. That makes for a meaningful architectural difference."

Availability

8x8 Pulse is in early availability for select 8x8 customers. For more details, contact an Account Manager or Customer Success Manager.

8x8, Inc. is committed to the responsible use of artificial intelligence and the protection of customer data. The 8x8 Platform for CX is developed and operated in accordance with established security standards, applicable compliance frameworks, and internal governance policies, including privacy-by-design principles that safeguard personal data on the 8x8 platform. Full details are available at trust.8x8.com.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the expected capabilities and availability of 8x8 Pulse, including anticipated customer benefits, the expected benefits of the conversational data foundation, and future product expansions. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. For a discussion of these risks and uncertainties, please refer to 8x8’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 8x8 assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

Copyright 2026 8x8, Inc. 8x8, 8x8 Pulse, and associated brand assets are trademarks or registered trademarks of 8x8, Inc. All rights reserved. All third-party trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260603379786/en/

Competing against Google, Adobe, and JBL, The Power of You claimed the top AI prize by leading with people over product

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT) won Gold in the AI category at The Drum Awards for Marketing Americas for its "The Power of You" brand campaign. The award was presented June 4, 2026, and marks the eighth industry recognition for the campaign since its August 2025 launch – and one of the highest honors in global marketing. 8x8 won the Gold in a category that included finalists Google, JBL, Adobe, and others.

Prior recognitions include Platinum honors from the Pinnacle Marketing & Comms Award, AVA Digital Awards, and MarCom Award, along with Gold, Winner, and Award of Distinction recognitions across the Muse Creative Awards, Hermes Creative Awards, IAC Awards, and Communicator Awards.

In a category where many vendors lead with product features and AI roadmaps, the IT leaders, contact center managers, and CX professionals actually accountable for outcomes had never been the protagonist. The Power of You is 8x8’s answer to that gap, putting real 8x8 customers at the center, using cinematic visuals and generative AI production to bring their work to life at a scale that wasn't previously possible in B2B marketing.

In December 2025, The Power of You reached its clearest proof point. 8x8 brought Genelle Chamberlain, a Service Desk Manager at PrimeSource and Dimora Brands, to Times Square, where her film ran on one of the world's largest screens in front of approximately 220,000 daily visitors. Her husband was there. Members from her Brooklyn office came out to watch. She cried tears of joy.

"This is another strong signal that what we're building at 8x8 is genuinely unique,” said Bruno Bertini, Chief Marketing Officer at 8x8, Inc. “Our brand is built on a real purpose. Putting the spotlight on the leaders who actually do the work, and using modern AI to tell their stories through cinematic scenes. The Power of You is the connective tissue of our strategy. It connects our customers, our partners, our employees, and our analysts around a brand that's actively supporting our company’s transformation and growth."

The campaign was developed in partnership with the creative agency Optimism BH. More can be found at 8x8.com/thepowerofyou.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved.

More News From 8x8, Inc.

AI-Powered Automatic Quality Evaluations Extend 8x8’s Integrated Workforce Engagement Management Strategy Across the 8x8 Platform for CX

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, has seen nearly 3x growth in its workforce management customer base since its early availability announcement of 8x8 Workforce Management (WFM), offered at no additional cost. As organizations replace fragmented, bolt-on workforce tools with capabilities built directly into the 8x8 Platform for CX, the momentum reflects a broader shift in how contact center leaders are thinking about workforce management.

With AI interactions growing triple digits year-over-year, according to 8x8’s Q4 FY26 data, contact centers are increasingly choosing the 8x8 Platform for CX not just to handle customer interactions, but to manage, develop, and optimize the teams behind them — driving adoption of 8x8 WFM, available at no additional cost to 8x8 Contact Center customers, and the newly launched automatic evaluations for 8x8 Quality Management.

"Standalone WFM tools were built for the largest, most complex contact centers in the world – and that left organizations with the hundred-seat operations on the sidelines, making do with spreadsheets and gut instinct,” said Hunter Middleton, Chief Product Officer at 8x8, Inc. “That's the gap we're closing. When workforce management is embedded directly in the platform contact center teams are already running, there's no six-figure implementation project, no IT backlog, no second vendor to manage. The hundred-seat contact center has always deserved enterprise-grade WFM — they just never had a version built for them, until now."

WFM adoption hits nearly 3x growth, driven by supervisor self-activation

Between November 2025 and the end of Q4 FY26, 8x8 WFM customer growth across the 8x8 installed base has increased by more than 170%, with adoption concentrated in deployments of 101–250 and 250+ agents. Unlike legacy WFM tools that require months of implementation, IT involvement, and upfront investment, 8x8 WFM can be activated by contact center supervisors themselves typically in minutes, with no IT admin required, and with instant access to up to 12 months of data.

The operational impact is immediate: supervisors gain real-time visibility into staffing gaps and demand patterns, enabling closer alignment between agent schedules and customer volume, reduced wait times, and more time spent coaching rather than firefighting. What once required coordination across IT, operations, and finance teams can now be done independently by the people closest to the customer experience.

For organizations implementing 8x8 WFM, feedback in early evaluation reflects that directly.

“Prior to 8x8 Workforce Management implementation our supervisors were relying on spreadsheets and guesses on how to schedule their staff,” said Genelle Chamberlain, IT Manager at PrimeSource and Dimora Brands. “Oftentimes calls would come in with no one available to answer. But now leaders gain the insight to forecast demand, optimize schedules, and ensure every shift has the right amount of coverage. Call abandonment has dropped and customer satisfaction has soared. The agents don't feel overwhelmed and frustrated and we are staffed to the needs of the business.” “As we pilot the 8x8 WFM tool, we are excited about several promising features,” said Hunain Kalim, Process Support Lead at Oxford University Press. “By feeding directly from live 8x8 queues and contacts, it has the potential to streamline the entire resource planning process across hundreds of queues and multiple teams.” AI-powered quality management: from sampling to 100% coverage

Extending the WFM momentum, 8x8 has also launched 8x8 Quality Management with automatic evaluations, which automatically scores 100% of eligible interactions using AI, complementing manual processes that typically review only a small fraction of calls. Every score is grounded in the actual call transcript, with answer-reference mapping that cites directly from the conversation, giving agents clear visibility into how evaluations were reached and making coaching conversations more objective and productive.

Because 8x8 Quality Management is built on the same unified data foundation as the broader 8x8 Platform for CX, quality insights are connected to the full customer journey, not isolated in a standalone tool. With this in mind, 8x8 Quality Management with automatic evaluations not only saves time by removing unnecessary manual evaluations but also provides a scalable, unified data foundation where insights previously kept siloed can be used for other applications, like smarter routing, in the future.

"The barrier to WFM adoption for SMBs has never been awareness – it's been cost and complexity,” said Layne Haaksma, Senior Research Analyst at Metrigy. “By including core WFM at no charge while offering advanced AI-driven capabilities as optional add-ons, 8x8 creates a natural growth path that aligns with how SMBs actually buy. Our research backs it up: 58.3% of SMBs expect automated scheduling and forecasting to come standard with their platform according to Metrigy’s Workforce Engagement Management 2025-26 global research study. The market was already moving in this direction; 8x8 is leading the charge for its customers."

Together, 8x8 WFM and 8x8 Quality Management represent core components of an integrated Workforce Engagement Management (WEM) strategy that organizations can activate within their existing 8x8 Contact Center subscription without new vendors, complex integrations or IT-led projects typically required for standalone WEM tools.

To learn more, visit 8x8.com/solutions/optimize-your-workforce or explore the 8x8 WFM product tour.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the continued growth and adoption of 8x8 Workforce Management (WFM); the expected capabilities, availability, and benefits of 8x8 Quality Management with automatic evaluations and other AI-powered features; anticipated customer benefits and deployment outcomes; the advantages of an integrated Workforce Engagement Management (WEM) strategy delivered on the 8x8 Platform for CX; and 8x8’s strategic plans for further developing and integrating workforce, quality, and AI capabilities. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by these statements. For a discussion of these risks and uncertainties, please refer to 8x8’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 8x8 assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved.

More News From 8x8, Inc.

8x8 AI Studio Delivers Wave of New Capabilities as Platform Expansion Accelerates 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, continues its rapid expansion of 8x8 AI Studio capabilities since its launch earlier this year, including the addition of multi-LLM model selection, one-click system connectors, voice-driven agent building, and IVR conversion. With its most recent addition, live simultaneous voice translation, 8x8 AI Studio now lets agents and customers speak their own language in real time, across 13 languages, without switching channels, adding interpreters, or interrupting the conversation. It’s now in early availability for customers.

The experience is designed to be immediate and unobtrusive. When a customer speaks in French, Spanish, or Japanese, for example, the agent hears the customer's original voice softened beneath a real-time AI-generated translation in their own language — no lag, no relay interpreter, no separate call. The same works in reverse. Both parties speak naturally and the conversation simply works.

When a customer contacts support in a language the agent doesn't speak, the typical outcomes are a transfer, a callback, or a dropped interaction. Live translation in 8x8 AI Studio changes that. The agent stays on the call, the customer doesn't repeat themselves, and the interaction resolves instead of escalating.

Live translation runs directly within the 8x8 AI Studio voice agent and advisor experience — with no third-party interpretation service to connect and no workflow changes required. Translation is handled automatically when a language mismatch is detected. The full interaction — original speech and translated output — is captured in the call record and the live advisor interface. Supervisors reviewing sessions see both, so quality assurance does not depend on guesswork about what was said.

Live translation builds on the AI model improvements already in 8x8 AI Studio — specifically the more accurate transcription of accented and non-native speech introduced with the recent addition of OpenAI's GPT-Realtime-2. That accuracy is what makes the experience more reliable across languages, not just common ones.

Since launch, 8x8 AI Studio has delivered several capabilities that change how organizations build, deploy, and run AI agents in production, such as:

Every agent runs on the right model for the job across both voice and text channels, because Claude, Gemini, Grok, and ChatGPT are all selectable per agent with no platform change required to switch. Agents take action inside the systems customers already run, with one-click connectors to HubSpot, Slack, Stripe, Atlassian, Twilio, GitHub, Asana, Figma, Intercom, Dropbox, and ClickUp available out of the box, no integration project required. Businesses move off legacy phone-tree IVRs without rebuilding from scratch, because the Builder reads existing 8x8 auto-attendants and converts them into AI Studio call flows it can then improve. Agents are built and edited by speaking instead of typing, because the Builder transcribes push-to-talk dictation, cleans up filler and self-corrections, and drops the text in for review before anything is sent. Customers reach an agent right on the website by voice or text, can share an image when words are not enough, and get connected to a live agent the moment they need one, all from a single embeddable widget. “I’ve spent much of my life living abroad, and I know from experience how isolating a language barrier can be,” said Emil Ivov, VP of Product for Video Platform and Services at 8x8, Inc. “As an international student in France, even simple tasks like contacting a service provider or calling customer support could feel overwhelming. Those challenges still affect millions of people every day. With real-time translation in 8x8 AI Studio, we’re helping organizations communicate with customers in their preferred language, making support more accessible, more natural, and more human.”

Live voice translation in 8x8 AI Studio is available now for customers in early availability. For more information, visit docs.8x8.studio or contact your 8x8 account team.

8x8, Inc. is committed to the responsible use of artificial intelligence and the protection of customer data. The 8x8 Platform for CX is developed and operated in accordance with established security standards, applicable compliance frameworks, and internal governance policies, including privacy-by-design principles that safeguard personal data on the 8x8 platform. Full details are available at trust.8x8.com.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the expected capabilities and availability of real-time AI translation features on the 8x8 Platform for CX, anticipated customer benefits and deployment outcomes across 13 languages, the advantages of multi-LLM AI architecture and integrations with HubSpot, Slack, and Stripe, and expected enhancements to customer experience and contact center performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. For a discussion of these risks and uncertainties, please refer to 8x8's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 8x8 assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611971199/en/

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Toronto, Bank of Nova Scotia (BNS - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 4.04%. The bank is paying out a dividend of $0.79 per share at the moment, with a dividend yield of 4.13% compared to the Banks - Foreign industry's yield of 2.76% and the S&P 500's yield of 1.43%.

Looking at dividend growth, the company's current annualized dividend of $3.16 is up 2.9% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BNS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.05 per share, with earnings expected to increase 19.57% from the year ago period.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BNS is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Bank of Nova Scotia (BNS - Free Report) , which belongs to the Zacks Banks - Foreign industry.

This bank has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.37%.

For the last reported quarter, Bank of Nova Scotia came out with earnings of $1.48 per share versus the Zacks Consensus Estimate of $1.42 per share, representing a surprise of 4.23%. For the previous quarter, the company was expected to post earnings of $1.33 per share and it actually produced earnings of $1.39 per share, delivering a surprise of 4.51%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Bank of Nova Scotia. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Bank of Nova Scotia has an Earnings ESP of +2.32% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on May 27, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Toronto, Bank of Nova Scotia (BNS - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 7.79%. The bank is currently shelling out a dividend of $0.79 per share, with a dividend yield of 3.98%. This compares to the Banks - Foreign industry's yield of 2.8% and the S&P 500's yield of 1.42%.

Looking at dividend growth, the company's current annualized dividend of $3.16 is up 2.9% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BNS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.03 per share, with earnings expected to increase 19.17% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BNS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended April 30, 2026 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise noted. Our complete Second Quarter 2026 Report to Shareholders, including our unaudited interim financial statements for the period ended April 30, 2026, can also be found on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov. Supplementary Financial Information is also available, together with the Second Quarter 2026 Report to Shareholders on the Investor Relations page at www.scotiabank.com.

Second Quarter 2026 Highlights on a Reported Basis
(versus Q2 2025)

Second Quarter 2026 Highlights on an Adjusted Basis(1)
(versus Q2 2025)

Net income of $2,632 million, compared to $2,032 million Earnings per share (diluted) of $2.00, compared to $1.48 Return on equity(2) (ROE) of 13.1%, compared to 10.1% Net income of $2,652 million, compared to $2,072 million Earnings per share (diluted) of $2.02, compared to $1.52 Return on equity of 13.2%, compared to 10.4% , /CNW/ - The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) reported second quarter net income of $2,632 million compared to $2,032 million in the same period last year. Diluted earnings per share (EPS) were $2.00, compared to $1.48 in the same period a year ago.

Adjusted net income(1) for the second quarter was $2,652 million and adjusted diluted EPS(1) was $2.02, up from $1.52 last year. Adjusted return on equity(1) was 13.2% compared to 10.4% a year ago.

"The Bank delivered another strong quarter as we continue to execute on our strategy, with strong revenue growth coupled with expanding margins and another quarter of positive operating leverage," said Scott Thomson, President and CEO of Scotiabank. "The Bank remains on track to achieve its financial objectives for fiscal 2026 and its 14%+ ROE objective in fiscal 2027. Our focus on evolving our business mix drove strong fee income and wealth management revenues, along with sequential Canadian commercial and small business loan growth."

Canadian Banking generated earnings of $935 million, up 53% compared to the prior year, driven by double-digit pre-tax, pre-provision earnings(3) growth and lower performing provision for credit losses. The business grew day-to-day and savings deposits and delivered another quarter of solid positive operating leverage, in line with its strategic objectives.

International Banking generated earnings of $736 million, up 3% year-over-year, driven by continued margin expansion and positive operating leverage as the business maintains its focus on expense discipline. ROE remained stable at 16%.

Global Wealth Management delivered earnings of $476 million, up 19% year-over year driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income. The business continued to deliver strong retail mutual fund sales through our branches, while assets under management(2) grew 18% year-over-year to $450 billion.

Global Banking and Markets reported earnings of $457 million, up 11% year-over-year. Results were driven by strong performance in our capital markets business, partly offset by higher expenses to support future business growth.

The Bank reported a Common Equity Tier 1 (CET1) capital ratio(4) of 13.3% and declared a dividend of $1.14, representing a 4% increase.

______________________________________

(1)

Refer to Non-GAAP Measures section starting on page 5.

(2)

Refer to page 57 of the Management's Discussion & Analysis in the Bank's Second Quarter 2026 Report to Shareholders, available on www.sedarplus.ca, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(3)

Pre-tax, pre-provision (PTPP) earnings are calculated as revenue net of non-interest expenses. This is a non-GAAP measure. PTPP earnings do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions. The Bank uses PTPP earnings to assess its ability to generate earnings growth excluding the impact of credit losses and income taxes. The Bank believes that certain non-GAAP measures provide readers with a better understanding of how management assesses performance.

(4)

The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline - Capital Adequacy Requirements.

Financial Highlights

Reported Results

For the three months ended

For the six months ended

April 30

January 31

April 30

April 30

April 30

(Unaudited) ($ millions)

2026

2026

2025

2026

2025

Operating results

Net interest income

$

5,521

$

5,582

$

5,270

$

11,103

$

10,443

Non-interest income

4,316

4,064

3,810

8,380

8,009

Total revenue

$

9,837

$

9,646

$

9,080

$

19,483

$

18,452

Provision for credit losses

1,217

1,176

1,398

2,393

2,560

Non-interest expenses

5,189

5,299

5,110

10,488

11,601

Income tax expense

799

872

540

1,671

1,266

Net income

$

2,632

$

2,299

$

2,032

$

4,931

$

3,025

Net income attributable to non-controlling interests in subsidiaries

37

12

56

49

(98)

Net income attributable to equity holders of the Bank

$

2,595

$

2,287

$

1,976

$

4,882

$

3,123

Preferred shareholders and other equity instrument holders

127

132

135

259

257

Common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Earnings per common share (in dollars)

Basic

$

2.01

$

1.75

$

1.48

$

3.75

$

2.30

Diluted

$

2.00

$

1.73

$

1.48

$

3.73

$

2.15

Business Segment Review

Canadian Banking

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $935 million compared to $613 million, an increase of 53%. The increase was driven primarily by higher revenues and lower provision for credit losses on performing loans, partly offset by higher non-interest expenses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $935 million compared to $960 million, a decrease of 3%. The decrease was driven primarily by lower net interest income impacted by three fewer days in the quarter.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,895 million compared to $1,526 million, an increase of 24%. The increase was driven primarily by higher revenues and lower provision for credit losses on performing loans, partly offset by higher non-interest expenses.

International Banking

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $701 million compared to $676 million, an increase of $25 million or 4%. The increase was driven primarily by lower non-interest expenses, lower income taxes and the positive impact of foreign currency translation. This was partly offset by lower net interest income, lower non-interest income and higher provision for credit losses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $701 million compared to $717 million, a decrease of $16 million or 2%. The decrease was driven primarily by higher provision for credit losses, lower net interest income and lower non-interest income. This was partly offset by lower non-interest expenses and lower income taxes.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,418 million compared to $1,327 million, an increase of $91 million or 7%. The increase was driven primarily by lower non-interest expenses, lower provision for credit losses and the positive impact of foreign currency translation. This was partly offset by lower net interest income and lower non-interest income.  

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures starting on page 5). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Ratios are on a reported basis.

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $701 million compared to $691 million, an increase of $10 million or 1%. The increase was driven primarily by lower non-interest expenses and lower income taxes. This was partly offset by lower net interest income, lower non-interest income and higher provision for credit losses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $701 million compared to $718 million, a decrease of $17 million or 2%. The decrease was driven primarily by lower net-interest income, lower non-interest income and higher provision for credit losses. This was partly offset by lower non-interest expenses and lower income taxes.  

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,418 million compared to $1,373 million, an increase of $45 million or 3%. The increase was driven primarily by lower non-interest expenses and lower provision for credit losses, partly offset by lower net interest income and lower non-interest income.

Global Wealth Management

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $474 million compared to $399 million, an increase of 19%. The increase was driven primarily by higher mutual fund fees, brokerage revenues and net interest income across the Canadian wealth business.  This was partly offset by higher volume-related non-interest expenses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $474 million compared to $481 million, a decrease of 2%. The decrease was driven primarily by lower mutual fund fees and brokerage revenues due to the impact of three fewer days in the quarter, partly offset by lower non-interest expenses.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $955 million compared to $806 million, an increase of 18%. The increase was driven primarily by higher mutual fund fees, brokerage revenues, and net interest income reflecting strong volume growth in deposits and loans as well as improved margins, partly offset by higher volume-related non-interest expenses.

Global Banking and Markets

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $457 million compared to $413 million, an increase of $44 million or 11%. The increase was driven primarily by higher non-interest income and higher net interest income. This was partly offset by higher non-interest expenses and the negative impact of foreign currency translation.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $457 million compared to $545 million, a decrease of $88 million or 16%. The decrease was driven primarily by lower non-interest income and lower net interest income, partly offset by lower non-interest expenses and lower provision for credit losses.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,002 million compared to $930 million, an increase of $72 million or 8%. The increase was driven primarily by higher non-interest income, higher net interest income and lower income tax expense. This was partly offset by higher non-interest expenses, higher provision for credit losses, and the negative impact of foreign currency translation.

Other

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $28 million compared to a loss of $125 million, an increase of $153 million. Included in prior year non-interest expenses is an impairment loss of $26 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted net income attributable to equity holders was $35 million compared to a loss of $80 million, an increase of $115 million. The increase was due primarily to higher non-interest income from investment gains and higher revenue from associated corporations primarily related to the KeyCorp investment, as well as higher net interest income due to lower funding costs.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $28 million compared to a loss of $416 million, an increase of $444 million. Included in prior quarter non-interest income is a loss of $423 million recognized upon the completion of the sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted net income attributable to equity holders was $35 million compared to a loss of $41 million, an increase of $76 million. The increase was due primarily to higher non-interest income from investment gains and higher net interest income due to lower funding costs, partly offset by higher non-interest expenses.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net loss attributable to equity holders was $388 million compared to a loss of $1,466 million. Included in current year non-interest income is a loss of $423 million recognized upon the completion of the sale of the banking operations in Colombia, Costa Rica and Panama. Included in prior year non-interest expenses is an impairment loss of $1,388 million related to the announced sale of these operations. Adjusted net loss attributable to equity holders was $6 million compared to a loss of $257 million last year. The lower loss was driven primarily by higher net interest income due to lower funding costs, higher non-interest income from investment gains and higher revenue from associated corporations, primarily related to the KeyCorp investment. This was partly offset by higher non-interest expenses.

Credit risk

Provision for credit losses

Q2 2026 vs Q2 2025

The provision for credit losses was $1,217 million compared to $1,398 million, a decrease of $181 million. The provision for credit losses ratio decreased by nine basis point to 66 basis points.

The provision for credit losses on performing loans was $88 million compared to $346 million, a decrease of $258 million. The provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio. Last year, the Bank substantially increased its provision for credit losses on performing loans to reflect the uncertainty related to U.S. tariffs due to the deterioration in macroeconomic indicators, mainly impacting the Canadian retail and commercial portfolios.

The provision for credit losses on impaired loans was $1,129 million compared to $1,052 million, an increase of $77 million. The provision for credit losses ratio on impaired loans was 61 basis points, an increase of four basis points. The increase was due primarily to higher formations in Canadian Banking and in the International corporate portfolios, mainly related to one account.

Q2 2026 vs Q1 2026

The provision for credit losses was $1,217 million compared to $1,176 million, an increase of $41 million. The provision for credit losses ratio increased by five basis points to 66 basis points.

The provision for credit losses on performing loans was $88 million compared to $73 million, an increase of $15 million. The provision this quarter was due primarily to the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio.

The provision for credit losses on impaired loans was $1,129 million compared to $1,103 million, an increase of $26 million. The provision for credit losses ratio on impaired loans was 61 basis points, an increase of three basis points. The increase was due primarily to higher formations in the International corporate portfolio.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

The provision for credit losses was $2,393 million compared to $2,560 million. The provision for credit losses ratio decreased by five basis points to 63 basis points.

Provision for credit losses on performing loans was $161 million, compared to $444 million. The provision this period was driven by credit migration in the Canadian and International portfolios, as well as retail portfolio growth mainly in Chile and Mexico. This was partly offset by a more favourable macroeconomic outlook impacting the International commercial portfolio. The prior period reflected the impact of the uncertainty related to U.S. tariffs, mainly impacting Canadian Banking.

The provision for credit losses on impaired loans was $2,232 million compared to $2,116 million, an increase of $116 million. The provision for credit losses ratio on impaired loans was 59 basis points, an increase of three basis points. The increase in provision this year was due to higher formations in Canadian Banking and corporate portfolios.

Allowance for credit losses

The total allowance for credit losses as at April 30, 2026 was $7,344 million compared to $7,185 million in the prior quarter. The allowance for credit losses ratio was 96 basis points, an increase of two basis points. The allowance for credit losses for loans was $7,150 million compared to $7,002 million in the prior quarter, an increase of $148 million. The increase in allowance for impaired loans was due primarily to higher provisions in the International corporate portfolio, due mainly to one account. This was partly offset by the impact of foreign currency translation of $65 million.

The allowance for credit losses on performing loans was higher at $4,742 million compared to $4,715 million last quarter. The allowance for performing loans ratio was 64 basis points, unchanged from last quarter. The increase was due primarily to the unfavourable macroeconomic outlook in Canadian Banking portfolios, as well as credit migration in the International commercial portfolio. This was partly offset by the impact of foreign currency translation of $38 million.

The allowance for credit losses on impaired loans was higher at $2,408 million compared to $2,287 million last quarter. The allowance for impaired loans ratio was 32 basis points, an increase of two basis points. The increase was due primarily to higher provisions in the International corporate portfolio, due mainly to one account. This was partly offset by the impact of foreign currency translation of $27 million.

Impaired loans

Gross impaired loans as at April 30, 2026 were $7,608 million compared to $7,248 million last quarter.  The increase was due primarily to new formations in the International corporate portfolio, due mainly to one account, partly offset by the impact of foreign currency translation. The gross impaired loan ratio increased four basis points to 99 basis points.

Net impaired loans in Canadian Banking were $1,860 million, an increase of $100 million from last quarter, due primarily to higher commercial formations. Net impaired loans in International Banking were $3,079 million, an increase of $157 million from last quarter, due mainly to one account. Net impaired loans in Global Banking and Markets were $187 million, a decrease of $34 million from last quarter due to write-offs. Net impaired loans in Global Wealth Management were $74 million, an increase of $16 million from last quarter. Net impaired loans as a percentage of loans and acceptances increased three basis points to 0.68%.

Capital Ratios

The Bank's CET1 capital ratio(1) was 13.3% as at April 30, 2026, unchanged from the prior quarter. The favourable impact of earnings less dividends and organic reduction in RWA were largely offset by RWA increases from model and methodology updates, unfavourable changes in accumulated other comprehensive income, and share repurchases. 

The Bank's Tier 1 capital(1) and Total capital ratios(1) were 15.4% and 17% respectively, as at April 30, 2026, unchanged from the prior quarter, as both Tier 1 and Tier 2 capital, and RWA were in line with the prior quarter.

The Leverage ratio(1) was 4.3% as at April 30, 2026, a decrease of 10 basis points from prior quarter, primarily from higher leverage exposures.

As at April 30, 2026, the CET1, Tier 1, Total capital, and Leverage ratios were well above OSFI's minimum capital ratios. The TLAC(1) and TLAC Leverage ratios(1) were 28.6% and 8% respectively, well above OSFI's minimum requirements.

______________________________________

(1)

The regulatory ratios and measures are calculated in accordance with the Office of the Superintendent of Financial Institutions (OSFI) Guidelines on Capital Adequacy Requirements, Total Loss Absorbing Capacity and Leverage Requirements.

Non-GAAP Measures 

The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP, do not have standardized meanings and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that non-GAAP measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures and ratios are used throughout this report and defined below.

Adjusted results and diluted earnings per share

The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance.

Reconciliation of reported and adjusted results

For the three months ended

For the six months ended

April 30

January 31

April 30

April 30

April 30

($ millions)

2026

2026

2025

2026

2025

Reported Results

Net interest income

$

5,521

$

5,582

$

5,270

$

11,103

$

10,443

Non-interest income

4,316

4,064

3,810

8,380

8,009

Total revenue

9,837

9,646

9,080

19,483

18,452

Provision for credit losses

1,217

1,176

1,398

2,393

2,560

Non-interest expenses

5,189

5,299

5,110

10,488

11,601

Income before taxes

3,431

3,171

2,572

6,602

4,291

Income tax expense

799

872

540

1,671

1,266

Net income

$

2,632

$

2,299

$

2,032

$

4,931

$

3,025

Net income attributable to non-controlling interests in subsidiaries (NCI)

37

12

56

49

(98)

Net income attributable to equity holders

2,595

2,287

1,976

4,882

3,123

Net income attributable to preferred shareholders and other equity

instrument holders

127

132

135

259

257

Net income attributable to common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Adjustments

Adjusting items impacting non-interest income and total revenue (Pre-tax)

(a) Divestitures and wind-down of operations

$

–

$

423

$

9

$

423

$

9

(b) Amortization of acquisition-related intangible assets

8

8

9

16

9

Total non-interest income and total revenue adjusting items (Pre-tax)

8

431

18

439

18

Adjusting items impacting non-interest expenses (Pre-tax)

(a) Divestitures and wind-down of operations

–

11

26

11

1,388

(b) Amortization of acquisition-related intangible assets

18

15

17

33

35

Total non-interest expense adjusting items (Pre-tax)

18

26

43

44

1,423

Total impact of adjusting items on net income before taxes

26

457

61

483

1,441

Impact of adjusting items on income tax expense

(a) Divestitures and wind-down of operations

–

(57)

(15)

(57)

(22)

(b) Amortization of acquisition-related intangible assets

(6)

(4)

(6)

(10)

(10)

Total impact of adjusting items on income tax expense

(6)

(61)

(21)

(67)

(32)

Total impact of adjusting items on net income

$

20

$

396

$

40

$

416

$

1,409

Impact of adjusting items on NCI

–

(10)

16

(10)

(175)

Total impact of adjusting items on net income attributable to equity

holders

$

20

$

386

$

56

$

406

$

1,234

Adjusted Results

Net interest income

$

5,521

$

5,582

$

5,270

$

11,103

$

10,443

Non-interest income

4,324

4,495

3,828

8,819

8,027

Total revenue

9,845

10,077

9,098

19,922

18,470

Provision for credit losses

1,217

1,176

1,398

2,393

2,560

Non-interest expenses

5,171

5,273

5,067

10,444

10,178

Income before taxes

3,457

3,628

2,633

7,085

5,732

Income tax expense

805

933

561

1,738

1,298

Net income

$

2,652

$

2,695

$

2,072

$

5,347

$

4,434

Net income attributable to NCI

37

22

40

59

77

Net income attributable to equity holders

2,615

2,673

2,032

5,288

4,357

Net income attributable to preferred shareholders and other equity

instrument holders

127

132

135

259

257

Net income attributable to common shareholders

$

2,488

$

2,541

$

1,897

$

5,029

$

4,100

The Bank's quarterly financial results were adjusted for the following items. These amounts were recorded in the Other operating segment, unless otherwise noted.

a)        Divestitures and wind-down of operations

In Q1 2026, the Bank recognized a loss of $434 million ($377 million after-tax) upon the completion of the sale of its banking operations in Colombia, Costa Rica and Panama. The loss primarily represents the release of cumulative foreign currency translation losses, inclusive of hedges. In the prior fiscal year, the Bank recognized a total impairment loss of $1,422 million in non-interest expense and a credit of $45 million in non-interest income (collectively $1,342 million after-tax), of which $1,362 million ($1,355 million after-tax) was recognized in Q1 2025, as the operations that were a part of this transaction were designated as held for sale. The changes subsequent to Q1 2025 represented changes in the carrying value of net assets being sold and fair value of shares received less costs to sell, as well as changes in foreign currency. For further details, please refer to Note 19 of the condensed interim consolidated financial statements in the Q2 2026 Quarterly Report to Shareholders.

In Q2 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in non-interest income – other upon closing.

b)       Amortization of acquisition-related intangible assets

These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. The costs are recorded in non-interest expenses – depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments, and non-interest income – net income from investments in associated corporations for the Other operating segment.

Reconciliation of reported and adjusted diluted earnings per share

For the three months ended

For the six months ended

April 30

January 31

April 30

April 30

April 30

($ millions)

2026

2026

2025

2026

2025

Reported Results

Net income attributable to common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Dilutive impact of share-based payment options and others

–

(9)

–

(9)

(180)

Net income attributable to common shareholders (diluted)

$

2,468

$

2,146

$

1,841

$

4,614

$

2,686

Weighted average number of diluted common shares outstanding (millions)

1,232

1,238

1,246

1,236

1,250

Diluted earnings per common share (in dollars)

$

2.00

$

1.73

$

1.48

$

3.73

$

2.15

Adjusted Results

Net income attributable to common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Impact of adjusting items on net income attributable to common

     shareholders(1)

20

386

56

406

1,234

Adjusted net income attributable to common shareholders

$

2,488

$

2,541

$

1,897

$

5,029

$

4,100

Dilutive impact of share-based payment options and others

–

1

1

1

(6)

Adjusted net income attributable to common shareholders (diluted)

$

2,488

$

2,542

$

1,898

$

5,030

$

4,094

Weighted average number of diluted common shares outstanding (millions)

1,232

1,238

1,250

1,236

1,250

Adjusted diluted earnings per common share (in dollars)

$

2.02

$

2.05

$

1.52

$

4.07

$

3.28

Impact of adjustments on diluted earnings per share (in dollars)

$

0.02

$

0.32

$

0.04

$

0.34

$

1.13

(1) Refer to table on page 6.

Reconciliation of reported and adjusted results by business line 

For the three months ended April 30, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

935

$

736

$

476

$

457

$

28

$

2,632

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

35

2

–

–

37

Reported net income attributable to equity holders

935

701

474

457

28

2,595

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

127

127

Reported net income attributable to common shareholders

$

935

$

701

$

474

$

457

$

(99)

$

2,468

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

8

8

Adjusting items impacting non-interest expenses (Pre-tax)

Amortization of acquisition-related intangible assets

–

9

9

–

–

18

Total non-interest expenses adjustments (Pre-tax)

–

9

9

–

–

18

Total impact of adjusting items on net income before taxes

–

9

9

–

8

26

Total impact of adjusting items on income tax expense

–

(2)

(3)

–

(1)

(6)

Total impact of adjusting items on net income

–

7

6

–

7

20

Impact of adjusting items on NCI

–

–

–

–

–

–

Total impact of adjusting items on net income attributable

to equity holders

–

7

6

–

7

20

Adjusted net income (loss)

$

935

$

743

$

482

$

457

$

35

$

2,652

Adjusted net income attributable to equity holders

$

935

$

708

$

480

$

457

$

35

$

2,615

Adjusted net income attributable to common shareholders

$

935

$

708

$

480

$

457

$

(92)

$

2,488

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

For the three months ended January 31, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

960

$

737

$

484

$

544

$

(426)

$

2,299

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

20

3

(1)

(10)

12

Reported net income attributable to equity holders

960

717

481

545

(416)

2,287

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

132

132

Reported net income attributable to common shareholders

$

960

$

717

$

481

$

545

$

(548)

$

2,155

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

423

423

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

431

431

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

11

11

Amortization of acquisition-related intangible assets

–

6

9

–

–

15

Total non-interest expenses adjustments (Pre-tax)

–

6

9

–

11

26

Total impact of adjusting items on net income before taxes

–

6

9

–

442

457

Total impact of adjusting items on income tax expense

–

(2)

(2)

–

(57)

(61)

Total impact of adjusting items on net income

–

4

7

–

385

396

Impact of adjusting items on NCI

–

–

–

–

(10)

(10)

Total impact of adjusting items on net income attributable

to equity holders

–

4

7

–

375

386

Adjusted net income (loss)

$

960

$

741

$

491

$

544

$

(41)

$

2,695

Adjusted net income attributable to equity holders

$

960

$

721

$

488

$

545

$

(41)

$

2,673

Adjusted net income attributable to common shareholders

$

960

$

721

$

488

$

545

$

(173)

$

2,541

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

For the three months ended April 30, 2025(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

613

$

714

$

401

$

412

$

(108)

$

2,032

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

38

2

(1)

17

56

Reported net income attributable to equity holders

613

676

399

413

(125)

1,976

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

135

135

Reported net income attributable to common shareholders

$

613

$

676

$

399

$

413

$

(260)

$

1,841

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

9

9

Amortization of acquisition-related intangible assets

–

–

–

–

9

9

Total non-interest income adjustments (Pre-tax)

–

–

–

–

18

18

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

26

26

Amortization of acquisition-related intangible assets

1

7

9

–

–

17

Total non-interest expenses adjustments (Pre-tax)

1

7

9

–

26

43

Total impact of adjusting items on net income before taxes

1

7

9

–

44

61

Impact of adjusting items on income tax expense

(1)

(2)

(3)

–

(15)

(21)

Total impact of adjusting items on net income

–

5

6

–

29

40

Impact of adjusting items on NCI

–

–

–

–

16

16

Total impact of adjusting items on net income attributable

to equity holders

–

5

6

–

45

56

Adjusted net income (loss)

$

613

$

719

$

407

$

412

$

(79)

$

2,072

Adjusted net income attributable to equity holders

$

613

$

681

$

405

$

413

$

(80)

$

2,032

Adjusted net income attributable to common shareholders

$

613

$

681

$

405

$

413

$

(215)

$

1,897

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders

For the six months ended April 30, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

1,895

$

1,473

$

960

$

1,001

$

(398)

$

4,931

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

55

5

(1)

(10)

49

Reported net income attributable to equity holders

1,895

1,418

955

1,002

(388)

4,882

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

259

259

Reported net income attributable to common shareholders

$

1,895

$

1,418

$

955

$

1,002

$

(647)

$

4,623

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

423

423

Amortization of acquisition-related intangible assets

–

–

–

–

16

16

Total non-interest income adjustments (Pre-tax)

–

–

–

–

439

439

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

11

11

Amortization of acquisition-related intangible assets

–

15

18

–

–

33

Total non-interest expenses adjustments (Pre-tax)

–

15

18

–

11

44

Total impact of adjusting items on net income before taxes

–

15

18

–

450

483

Impact of adjusting items on income tax expense

–

(4)

(5)

–

(58)

(67)

Total impact of adjusting items on net income

–

11

13

–

392

416

Impact of adjusting items on NCI

–

–

–

–

(10)

(10)

Total impact of adjusting items on net income attributable

to equity holders

–

11

13

–

382

406

Adjusted net income (loss)

$

1,895

$

1,484

$

973

$

1,001

$

(6)

$

5,347

Adjusted net income attributable to equity holders

$

1,895

$

1,429

$

968

$

1,002

$

(6)

$

5,288

Adjusted net income attributable to common shareholders

$

1,895

$

1,429

$

968

$

1,002

$

(265)

$

5,029

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

For the six months ended April 30, 2025(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

1,526

$

1,400

$

810

$

929

$

(1,640)

$

3,025

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

73

4

(1)

(174)

(98)

Reported net income attributable to equity holders

1,526

1,327

806

930

(1,466)

3,123

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

257

257

Reported net income attributable to common shareholders

$

1,526

$

1,327

$

806

$

930

$

(1,723)

$

2,866

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

9

9

Amortization of acquisition-related intangible assets

–

–

–

–

9

9

Total non-interest income adjustments (Pre-tax)

–

–

–

–

18

18

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

1,388

1,388

Amortization of acquisition-related intangible assets

2

15

18

–

–

35

Total non-interest expenses adjustments (Pre-tax)

2

15

18

–

1,388

1,423

Total impact of adjusting items on net income before taxes   

2

15

18

–

1,406

1,441

Impact of adjusting items on income tax expense

(1)

(4)

(5)

–

(22)

(32)

Total impact of adjusting items on net income

1

11

13

–

1,384

1,409

Impact of adjusting items on NCI

–

–

–

–

(175)

(175)

Total impact of adjusting items on net income attributable

to equity holders

1

11

13

–

1,209

1,234

Adjusted net income (loss)

$

1,527

$

1,411

$

823

$

929

$

(256)

$

4,434

Adjusted net income attributable to equity holders

$

1,527

$

1,338

$

819

$

930

$

(257)

$

4,357

Adjusted net income attributable to common shareholders

$

1,527

$

1,338

$

819

$

930

$

(514)

$

4,100

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

Reconciliation of International Banking's reported and constant dollar results

International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment.

For the three months ended

For the six months ended

($ millions)

January 31, 2026

April 30, 2025

April 30, 2025

Foreign

Constant

Foreign

Constant

Foreign

Constant

Reported

exchange

dollar

Reported

exchange

dollar

Reported

exchange

dollar

Net interest income

$

2,146

$

(7)

$

2,153

$

2,179

$

(83)

$

2,262

$

4,348

$

(193)

$

4,541

Non-interest income

815

–

815

780

(27)

807

1,641

(76)

1,717

Total revenue

2,961

(7)

2,968

2,959

(110)

3,069

5,989

(269)

6,258

Provision for credit losses

536

(3)

539

550

(29)

579

1,152

(74)

1,226

Non-interest expenses

1,460

(4)

1,464

1,523

(61)

1,584

3,076

(140)

3,216

Income before taxes

965

–

965

886

(20)

906

1,761

(55)

1,816

Income tax expense

228

1

227

172

(5)

177

361

(12)

373

Net income

$

737

$

(1)

$

738

$

714

$

(15)

$

729

$

1,400

$

(43)

$

1,443

Net income attributable to non-controlling

interests in subsidiaries (NCI)

$

20

$

–

$

20

$

38

$

–

$

38

$

73

$

3

$

70

Net income attributable to equity holders of the Bank

$

717

$

(1)

$

718

$

676

$

(15)

$

691

$

1,327

$

(46)

$

1,373

Other measures

Average assets ($ billions)

$

219

$

–

$

219

$

229

$

(6)

$

235

$

229

$

(7)

$

236

Average liabilities ($ billions)

$

172

$

–

$

172

$

177

$

(7)

$

184

$

176

$

(7)

$

183

Return on equity 

Return on equity is a profitability measure that presents the net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Adjusted return on equity for the operating segments is calculated as a ratio of adjusted net income attributable to common shareholders of the operating segment and the capital attributed. This is a non-GAAP ratio.

For the three months ended April 30, 2026

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported

Net income attributable to common shareholders

$

935

$

701

$

474

$

457

$

(99)

$

2,468

Total average common equity(1)

21,515

17,987

10,840

15,179

11,915

77,436

Return on equity

17.8 %

16.0 %

17.9 %

12.4 %

nm(2)

13.1 %

Adjusted(3)

Net income attributable to common shareholders

$

935

$

708

$

480

$

457

$

(92)

$

2,488

Return on equity

17.8 %

16.1 %

18.2 %

12.4 %

nm(2)

13.2 %

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Not meaningful.

(3) Refer to Table on page 6.

For the three months ended January 31, 2026

For the three months ended April 30, 2025

Global

Global

Global

Global

Canadian

International

Wealth

Banking and

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Banking

Banking

Management

 Markets

Other

Total

Reported

Net income

attributable

to common

shareholders

$

960

$

717

$

481

$

545

$

(548)

$

2,155

$

613

$

676

$

399

$

413

$

(260)

$

1,841

Total average

common

equity(1)

21,090

17,836

10,810

15,121

12,431

77,288

20,893

18,087

10,332

14,970

10,343

74,625

Return on equity

18.1 %

16.0 %

17.7 %

14.3 %

nm(2)

11.1 %

12.0 %

15.3 %

15.8 %

11.3 %

nm(2)

10.1 %

Adjusted(3)

Net income

attributable

to common

shareholders

$

960

$

721

$

488

$

545

$

(173)

$

2,541

$

613

$

681

$

405

$

413

$

(215)

$

1,897

Return on equity

18.1 %

16.1 %

17.9 %

14.3 %

nm(2)

13.0 %

12.0 %

15.5 %

16.1 %

11.3 %

nm(2)

10.4 %

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Not meaningful.

(3) Refer to Table on page 6.

For the six months ended April 30, 2026

For the six months ended April 30, 2025

Global

Global

Global

Global

Canadian

International

Wealth

Banking and

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Banking

Banking

Management

Markets

Other

Total

Reported

Net income

attributable

to common

shareholders

$

1,895

$

1,418

$

955

$

1,002

$

(647)

$

4,623

$

1,526

$

1,327

$

806

$

930

$

(1,723)

$

2,866

Total average

common

equity(1)

21,299

17,910

10,824

15,150

12,083

77,266

21,271

18,140

10,257

15,169

9,443

74,280

Return on equity

17.9 %

16.0 %

17.8 %

13.3 %

nm(2)

12.1 %

14.5 %

14.8 %

15.8 %

12.4 %

nm(2)

7.8 %

Adjusted(3)

Net income

attributable

to common

shareholders

$

1,895

$

1,429

$

968

$

1,002

$

(265)

$

5,029

$

1,527

$

1,338

$

819

$

930

$

(514)

$

4,100

Return on equity

17.9 %

16.1 %

18.0 %

13.3 %

nm(2)

13.1 %

14.5 %

14.9 %

16.1 %

12.4 %

nm(2)

11.1 %

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Not meaningful.

(3) Refer to table on page 6.

Forward-looking statements

From time to time, our public communications include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission (SEC), or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2025 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "aim," "achieve," "foresee," "forecast," "anticipate," "intend," "estimate," "outlook," "seek," "schedule," "plan," "goal," "strive," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," "can" and "could" and positive and negative variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved.

We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate and globally; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; geopolitical risk (including policies and other changes related to, or affecting, economic or trade matters, including tariffs, countermeasures, tariff mitigation policies and tax-related risks); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including open banking and the use of data and artificial intelligence in our business, and technology resiliency; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank's information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; increased competition in the geographic and business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; environmental, social and governance risks, including climate-related risk, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their impact on the local, national or global economies, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2025 Annual Report, as may be updated by quarterly reports.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2026 Priorities" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events.

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov.

Shareholders Information

Dividend and Share Purchase Plan

Scotiabank's Shareholder Dividend and Share Purchase Plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent.

Website

For information relating to Scotiabank and its services, visit us at our website: www.scotiabank.com.

Conference Call and Web Broadcast

The quarterly results conference call will take place on May 27, 2026, at 7:15 am ET and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 647-557-5524, or toll-free at 1-888-440-4083 using ID 1863444# (please call shortly before 7:15 am ET). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page at www.scotiabank.com/investorrelations.

Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from May 27, 2026, to June 3, 2026, by calling 647-362-9199 or toll-free at 1-800-770-2030 and entering the access code 1863444#.

Additional Information

Investors:
Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations:
            Scotiabank
            40 Temperance Street, Toronto, Ontario
            Canada M5H 0B4
            Telephone: (416) 775-0798
            E-mail: [email protected]

Global Communications:
           Scotiabank
           40 Temperance Street, Toronto, Ontario
           Canada M5H 0B4
           E-mail: [email protected]

Shareholders:
For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent:
            Computershare Trust Company of Canada
            320 Bay Street, 14th Floor
            Toronto, Ontario, Canada M5H 4A6
            Telephone: 1-877-982-8767
            E-mail: [email protected]

Co-Transfer Agent (USA)
Computershare Trust Company, N.A.
Telephone: 1-781-575-2000
E-mail: [email protected]

Street Courier/Address:
C/O: Shareholder Services
150 Royall Street
Canton, MA, USA 02021

Mailing Address:
PO Box 43078
Providence, RI, USA 02940-3006

For other shareholder enquiries, please contact the Corporate Secretary's Department:
Scotiabank
40 Temperance Street
Toronto, Ontario, Canada M5H 0B4
Telephone: (416) 866-3672
E-mail: [email protected]

Rapport trimestriel disponible en français

Le rapport trimestriel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations avec les investisseurs, La Banque de Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement.

SOURCE Scotiabank

Contact Information: Meny Grauman, Scotiabank Investor Relations, [email protected]; Rebecca Hoang, Scotiabank Investor Relations, [email protected]