RingCentral (NYSE:RNG) Announces Quarterly Earnings Results, Beats Expectations By $0.03 EPS

RingCentral (NYSE:RNG) released its quarterly earnings data on Thursday. The software maker reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03, FiscalAI reports. The firm had revenue of $644.20 million for the quarter, compared to analyst estimates of $642.73 million. RingCentral had a net margin of 3.31% and a negative return on equity of 34.90%. RingCentral’s quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.00 earnings per share. RingCentral updated its FY 2026 guidance to 4.850-5.010 EPS and its Q2 2026 guidance to 1.150-1.170 EPS.

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

• Raised guidance and strong cash generation: Q1 revenue came in at the high end ($644M, +5.3% YoY), management raised full?year revenue and margin guidance and now expects ~$600 million of free cash flow while repurchasing shares and paying the first quarterly dividend.
• Robust early AI adoption: RCAI adoption is accelerating — AI?using customers doubled YoY to >10% of the base, ARR from those customers more than doubled YoY, with AIR >11,800 paid customers (40% QoQ) and ACE >5,200 customers (85% YoY), driving higher ARPU and net retention >100%.
• Improving profitability and equity discipline: Stock?based compensation fell to ~9% of revenue and management targets 3–4% medium?term; non?GAAP operating margin expanded to ~23% and GAAP operating margin guidance was raised toward ~9% for 2026 with a 3–4 year goal of 20% GAAP operating margin.
• Top?line growth remains moderate: Revenue growth is stabilized around ~5% YoY and management acknowledged pricing rationalization, COVID lapping effects and that AI/GSP contributions are still early, so sustained acceleration in topline growth is not yet assured.

RingCentral Price Performance

Shares of RingCentral stock traded up $0.34 on Friday, hitting $45.73. The company had a trading volume of 4,777,079 shares, compared to its average volume of 1,711,542. The business has a 50-day simple moving average of $38.76 and a 200-day simple moving average of $32.17. The company has a market cap of $3.96 billion, a PE ratio of 48.64, a PEG ratio of 1.75 and a beta of 1.13. RingCentral has a 52 week low of $23.59 and a 52 week high of $48.57.

RingCentral Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Tuesday, June 2nd will be issued a $0.075 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $0.30 annualized dividend and a dividend yield of 0.7%. RingCentral’s dividend payout ratio (DPR) is 62.50%.

Analysts Set New Price Targets

RNG has been the topic of several research reports. Rosenblatt Securities increased their price objective on shares of RingCentral from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Friday. Wells Fargo & Company increased their price objective on shares of RingCentral from $32.00 to $43.00 and gave the stock an “equal weight” rating in a research note on Friday. Zacks Research upgraded shares of RingCentral from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 4th. Morgan Stanley increased their price objective on shares of RingCentral from $30.00 to $33.00 and gave the stock an “equal weight” rating in a research note on Friday, February 20th. Finally, Jefferies Financial Group reiterated a “hold” rating and set a $40.00 price objective on shares of RingCentral in a research note on Saturday. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $42.30.

Key Headlines Impacting RingCentral

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported Q1 earnings of $1.20 per share, above estimates, with revenue of about $644 million also slightly ahead of expectations. Management said subscription revenue rose about 6% year over year, helped by AI product adoption and expanding margins. RingCentral Announces First Quarter 2026 Financial Results
• Positive Sentiment: The company lifted its full-year 2026 guidance, with EPS now expected above prior consensus and Q2 guidance also coming in above estimates. That stronger outlook suggests improving profitability and execution. RingCentral Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: Analysts turned more constructive after the report, with Rosenblatt raising its price target to $50 and Wells Fargo lifting its target to $43, reflecting improved expectations around the business. Analyst price target updates
• Positive Sentiment: RingCentral also highlighted new AI-focused product momentum, including “Always-On AI” and recognition as a top provider for AI-powered CCaaS and workforce engagement management, which may support the long-term growth narrative. RingCentral Brings Always-On AI to the Front Lines of Customer Engagement
• Neutral Sentiment: The company announced a quarterly dividend of $0.075 per share, but the yield is modest and the payout is unlikely to be a major driver of the stock. RingCentral stock information

Insider Activity at RingCentral

In other news, COO Kira Makagon sold 46,960 shares of the stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $35.49, for a total value of $1,666,610.40. Following the completion of the transaction, the chief operating officer directly owned 369,524 shares in the company, valued at $13,114,406.76. This trade represents a 11.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Vaibhav Agarwal sold 18,680 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $36.33, for a total transaction of $678,644.40. Following the completion of the transaction, the chief financial officer owned 139,493 shares of the company’s stock, valued at $5,067,780.69. This trade represents a 11.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 259,854 shares of company stock valued at $9,312,708. Insiders own 7.30% of the company’s stock.

Institutional Trading of RingCentral

Several institutional investors and hedge funds have recently added to or reduced their stakes in RNG. Harvest Fund Management Co. Ltd acquired a new stake in RingCentral during the third quarter valued at approximately $30,000. Global Retirement Partners LLC lifted its stake in RingCentral by 70.9% during the fourth quarter. Global Retirement Partners LLC now owns 1,540 shares of the software maker’s stock valued at $44,000 after purchasing an additional 639 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in RingCentral by 103.0% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,823 shares of the software maker’s stock valued at $52,000 after purchasing an additional 925 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new stake in RingCentral during the fourth quarter valued at approximately $55,000. Finally, Parallel Advisors LLC lifted its stake in RingCentral by 43.8% during the fourth quarter. Parallel Advisors LLC now owns 2,230 shares of the software maker’s stock valued at $64,000 after purchasing an additional 679 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

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.