Ringcentral (NYSE:RNG) Releases Quarterly Earnings Results

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

Here are the key takeaways from Ringcentral’s conference call:

• RingCentral delivered strong 2025 financials with total revenue of about $2.52 billion, record free cash flow of ~$530 million (free cash flow per share $5.81), full-year GAAP operating margin turning positive (~4.8%), and 2026 guidance targeting roughly 9% GAAP operating margin and ~$590M free cash flow (midpoint).
• Management announced the company’s first-ever quarterly dividend of $0.075 per share and increased the buyback authorization by $250M (total repurchase capacity $500M), while repurchasing ~$334M in 2025, signaling a more diversified capital return strategy.
• RingCentral is pivoting to an “agentic voice AI” strategy—pure AI ARR nearly tripled year-over-year and customers paying for at least one AI product (RCAI-utilizing) have more than doubled to ~10% of ARR, showing higher ARPU and net retention above 100%.
• Early product traction: AIR reached ~8,300 customers (up 44% sequentially), ACE surpassed ~4,800 customers (up 144% YoY), RingCX customers exceeded 1,500 with revenue/ARR more than doubling, and the new Customer Engagement Bundle (CEB) crossed 1,000 customers shortly after launch—supporting the AI monetization thesis.

Ringcentral Price Performance

NYSE RNG traded up $9.85 during trading hours on Friday, hitting $39.24. The company had a trading volume of 7,036,665 shares, compared to its average volume of 2,461,137. Ringcentral has a fifty-two week low of $20.58 and a fifty-two week high of $40.64. The company has a market capitalization of $3.40 billion, a price-to-earnings ratio of 280.64, a P/E/G ratio of 1.22 and a beta of 1.23. The firm’s 50 day moving average is $28.21 and its 200 day moving average is $28.76.

Ringcentral Announces Dividend

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

Ringcentral News Roundup

Here are the key news stories impacting Ringcentral this week:

• Positive Sentiment: Q4 results beat consensus — EPS $1.18 vs $1.14 estimate and revenue roughly in line at ~$644M; management materials and the press release provide the detail that underpins the move. View Press Release
• Positive Sentiment: Big guidance beat — RingCentral raised Q1 EPS guidance to $1.160–$1.190 (vs. consensus ~$0.84) and FY‑2026 EPS to $4.76–$4.97 (vs. consensus ~$3.85), signaling stronger profitability and cash generation ahead; this is the primary driver of the rally. Earnings Call Highlights
• Positive Sentiment: Management targets subscription revenue growth of ~4.5%–5.5% and ~$590M free cash flow for 2026, citing accelerating AI momentum — supports the narrative of sustainable revenue and margin leverage. SA: Growth & FCF
• Positive Sentiment: Unusual options activity: large increase in call purchases (2,473 calls, ~206% above average) — indicates short‑term bullish positioning by traders and may amplify intraday price moves.
• Positive Sentiment: Dividend declared (quarterly $0.075; ex‑dividend Mar 9) — small but adds to yield/total‑return story and can attract income‑oriented investors.
• Neutral Sentiment: Rosenblatt upgraded/raised its target to $37.50 with a “buy” rating — the upgrade is supportive, but the target sits below the current market level, making its net impact mixed. Benzinga
• Neutral Sentiment: RingCentral’s inclusion in S&P indices has been reported — index inclusion can increase investor demand over time, though articles also flag valuation and execution risks. Yahoo: S&P Indices
• Negative Sentiment: Valuation and profitability caveats: the stock trades at a high P/E and the company has a negative return on equity and thin net margins — gains on the print and guidance could be tempered if execution or margin improvement disappoints.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on RNG. Needham & Company LLC reissued a “buy” rating and issued a $36.00 target price on shares of Ringcentral in a research note on Tuesday, November 4th. Morgan Stanley lowered their price target on shares of Ringcentral from $31.00 to $30.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Weiss Ratings reissued a “sell (d+)” rating on shares of Ringcentral in a research report on Monday, December 29th. UBS Group set a $38.00 price objective on shares of Ringcentral in a research note on Friday. Finally, Rosenblatt Securities lifted their target price on shares of Ringcentral from $32.00 to $37.50 and gave the stock a “buy” rating in a research note on Friday. Four investment 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’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $32.73.

Insiders Place Their Bets

In other news, CAO Tarun Arora sold 3,888 shares of the stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $28.70, for a total value of $111,585.60. Following the completion of the sale, the chief accounting officer owned 93,412 shares in the company, valued at approximately $2,680,924.40. This trade represents a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 owned 262,240 shares in the company, valued at approximately $7,258,803.20. The trade was a 9.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 53,141 shares of company stock worth $1,491,632 over the last quarter. 7.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ringcentral

Large investors have recently added to or reduced their stakes in the company. Xponance LLC lifted its holdings in Ringcentral by 4.0% in the 4th quarter. Xponance LLC now owns 12,059 shares of the software maker’s stock worth $348,000 after buying an additional 464 shares in the last quarter. California State Teachers Retirement System increased its position in shares of Ringcentral by 0.8% during the second quarter. California State Teachers Retirement System now owns 68,575 shares of the software maker’s stock worth $1,944,000 after acquiring an additional 524 shares during the last quarter. Global Retirement Partners LLC lifted its stake in shares of Ringcentral by 70.9% in the fourth quarter. Global Retirement Partners LLC now owns 1,540 shares of the software maker’s stock worth $44,000 after acquiring an additional 639 shares in the last quarter. Parallel Advisors LLC lifted its stake in shares of Ringcentral by 43.8% in the fourth quarter. Parallel Advisors LLC now owns 2,230 shares of the software maker’s stock worth $64,000 after acquiring an additional 679 shares in the last quarter. Finally, Commonwealth Equity Services LLC boosted its holdings in Ringcentral by 7.6% in the fourth quarter. Commonwealth Equity Services LLC now owns 10,313 shares of the software maker’s stock valued at $298,000 after purchasing an additional 728 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

Ringcentral Company Profile

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.