Ringcentral (NYSE:RNG) Sets New 1-Year High on Strong Earnings

Ringcentral, Inc. (NYSE:RNG) shares hit a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $38.64 and last traded at $40.0320, with a volume of 1560093 shares traded. The stock had previously closed at $29.39.

The software maker reported $1.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.14 by $0.04. The company had revenue of $644.03 million during the quarter, compared to analysts’ expectations of $643.52 million. Ringcentral had a negative return on equity of 22.38% and a net margin of 0.53%.Ringcentral’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.98 EPS. Ringcentral has set its FY 2026 guidance at 4.760-4.970 EPS and its Q1 2026 guidance at 1.160-1.190 EPS.

Ringcentral Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 9th will be issued a $0.075 dividend. The ex-dividend date is Monday, March 9th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.8%.

Key Ringcentral News

Here are the key news stories impacting Ringcentral this week:

• Positive Sentiment: Q4 EPS beat and revenue roughly in line — RingCentral reported $1.18 EPS vs. $1.14 consensus and revenue of $644M (about in line), showing sequential improvement and driving near‑term bullishness. Read More.
• Positive Sentiment: Big guidance raise: Q1 and FY2026 EPS guidance well above Street — management set Q1 EPS of $1.16–$1.19 and FY EPS of $4.76–$4.97, materially above consensus, which is the main driver of today’s upside. Read More.
• Positive Sentiment: AI tailwinds and targets for subscription growth and FCF — management is targeting 4.5%–5.5% subscription revenue growth and ~$$590M of free cash flow in 2026, pointing to improved profitability leverage from AI product momentum. Read More.
• Positive Sentiment: Shareholder return move: quarterly dividend declared — RingCentral declared a $0.075 quarterly dividend (ex‑dividend March 9, payable March 16), adding to investor yield and signaling confidence in cash generation.
• Positive Sentiment: S&P index inclusion — the company’s addition to S&P indices can increase passive fund demand and improve liquidity, a supportive technical for the stock. Read More.
• Neutral Sentiment: Revenue growth remains modest — revenue was up ~4.8% year‑over‑year, which is progress but not standout growth for a software name; investors will watch whether AI initiatives accelerate top‑line trajectory. Read More.
• Negative Sentiment: Profitability and valuation concerns persist — RingCentral still shows a negative return on equity (~-22%) and slim net margins, while the stock trades at a high P/E (~210x), leaving it vulnerable if execution on guidance or FCF targets slips.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on RNG shares. Weiss Ratings restated a “sell (d+)” rating on shares of Ringcentral in a research note on Monday, December 29th. Oppenheimer restated an “outperform” rating on shares of Ringcentral in a report on Friday. Mizuho set a $32.00 target price on Ringcentral in a research report on Friday. Morgan Stanley lowered their target price on Ringcentral from $31.00 to $30.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Finally, Zacks Research lowered Ringcentral from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 3rd. Four research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Ringcentral presently has an average rating of “Hold” and a consensus target price of $32.27.

Insider Buying and Selling at Ringcentral

In other news, CEO Vladimir Shmunis sold 27,018 shares of the firm’s stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $27.68, for a total value of $747,858.24. Following the sale, the chief executive officer directly owned 262,240 shares in the company, valued at approximately $7,258,803.20. This trade represents a 9.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Kira Makagon sold 6,495 shares of Ringcentral stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $29.22, for a total transaction of $189,783.90. Following the completion of the transaction, the chief operating officer directly owned 336,162 shares in the company, valued at approximately $9,822,653.64. The trade was a 1.90% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 53,141 shares of company stock valued at $1,491,632. 7.30% of the stock is currently owned by insiders.

Institutional Trading of Ringcentral

Several hedge funds and other institutional investors have recently made changes to their positions in RNG. Rothschild Investment LLC boosted its position in shares of Ringcentral by 15.8% in the 4th quarter. Rothschild Investment LLC now owns 2,681 shares of the software maker’s stock worth $77,000 after purchasing an additional 366 shares in the last quarter. Amalgamated Bank raised its stake in Ringcentral by 6.9% in the third quarter. Amalgamated Bank now owns 6,512 shares of the software maker’s stock valued at $185,000 after buying an additional 418 shares during the last quarter. Global Retirement Partners LLC boosted its holdings in Ringcentral by 98.5% in the third quarter. Global Retirement Partners LLC now owns 901 shares of the software maker’s stock worth $26,000 after acquiring an additional 447 shares in the last quarter. Jones Financial Companies Lllp grew its stake in shares of Ringcentral by 61.6% during the third quarter. Jones Financial Companies Lllp now owns 1,217 shares of the software maker’s stock worth $37,000 after acquiring an additional 464 shares during the last quarter. Finally, Xponance LLC increased its holdings in shares of Ringcentral by 4.0% during the fourth quarter. Xponance LLC now owns 12,059 shares of the software maker’s stock valued at $348,000 after acquiring an additional 464 shares in the last quarter. Hedge funds and other institutional investors own 98.61% of the company’s stock.

Ringcentral Trading Up 35.8%

The company’s 50-day moving average is $28.21 and its 200 day moving average is $28.76. The stock has a market capitalization of $3.46 billion, a PE ratio of 284.33, a price-to-earnings-growth ratio of 1.22 and a beta of 1.23.

About Ringcentral

RingCentral, Inc is a leading provider of cloud-based business communications and collaboration solutions. The company’s flagship platform delivers unified communications as a service (UCaaS), integrating voice over IP (VoIP) phone systems, video conferencing, team messaging and SMS into a single, cloud-native application. In addition to its UCaaS offering, RingCentral provides contact center as a service (CCaaS) capabilities, enabling organizations to manage customer interactions across voice, email, chat and social channels from a centralized dashboard.

Founded in 1999 and headquartered in Belmont, California, RingCentral went public on the New York Stock Exchange under the ticker RNG in 2013.