RingCentral, Inc. (NYSE:RNG – Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $38.62, but opened at $40.50. RingCentral shares last traded at $45.9710, with a volume of 1,433,547 shares traded.
The software maker reported $1.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.16 by $0.06. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The firm had revenue of $657.01 million for the quarter, compared to analyst estimates of $650.53 million. During the same period in the previous year, the company posted $1.06 earnings per share. The business’s revenue was up 5.9% on a year-over-year basis. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS.
RingCentral Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be issued a dividend of $0.125 per share. The ex-dividend date of this dividend is Thursday, August 6th. This is a positive change from RingCentral’s previous quarterly dividend of $0.07. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.1%. RingCentral’s payout ratio is currently 31.91%.
Trending Headlines about RingCentral
- Positive Sentiment: RingCentral beat Wall Street estimates in Q2, posting adjusted EPS of $1.22 versus expectations around $1.16-$1.17 and revenue of $657.0 million, above estimates. RingCentral Q2 2026 Earnings Report
- Positive Sentiment: The company lifted third-quarter guidance and full-year 2026 guidance above consensus, which signals management is seeing continued demand and better profitability ahead.
- Positive Sentiment: RingCentral announced expanded strategic partnerships with NiCE and OpenAI, reinforcing its AI-focused product strategy and potentially improving long-term growth prospects. NiCE and RingCentral Expand Strategic Partnership
- Positive Sentiment: Commentary around AI sales momentum and stronger free cash flow has supported the stock, with some analysts pointing to attractive valuation and improving retention in AI contact center products. Seeking Alpha Article
- Neutral Sentiment: RingCentral also declared a higher quarterly dividend of $0.125 per share, up 66.7% from $0.07, which may appeal to income investors but is not the main driver of the stock today.
Analyst Upgrades and Downgrades
A number of equities analysts recently weighed in on the stock. Needham & Company LLC restated a “buy” rating on shares of RingCentral in a research report on Monday. Oppenheimer reissued an “outperform” rating and issued a $50.00 target price on shares of RingCentral in a research note on Friday, May 8th. Jefferies Financial Group restated a “hold” rating and issued a $40.00 price target on shares of RingCentral in a research report on Saturday, May 9th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of RingCentral in a report on Friday, July 17th. Finally, Wells Fargo & Company boosted their price objective on RingCentral from $32.00 to $43.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, RingCentral currently has a consensus rating of “Hold” and a consensus price target of $43.60.
View Our Latest Research Report on RingCentral
Insider Activity at RingCentral
In other news, CFO Vaibhav Agarwal sold 7,047 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $46.17, for a total value of $325,359.99. Following the completion of the sale, the chief financial officer owned 169,282 shares of the company’s stock, valued at $7,815,749.94. This represents a 4.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Robert I. Theis sold 2,530 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total transaction of $101,908.40. Following the sale, the director owned 30,834 shares of the company’s stock, valued at $1,241,993.52. This represents a 7.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,498 shares of company stock valued at $1,892,586 over the last ninety days. Corporate insiders own 7.30% of the company’s stock.
Institutional Investors Weigh In On RingCentral
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. WealthCollab LLC lifted its stake in shares of RingCentral by 59.7% in the 1st quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock valued at $26,000 after purchasing an additional 259 shares during the last quarter. Meeder Asset Management Inc. raised its holdings in RingCentral by 127.3% in the 1st quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker’s stock valued at $27,000 after buying an additional 410 shares during the period. EverSource Wealth Advisors LLC raised its holdings in RingCentral by 269.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker’s stock valued at $29,000 after buying an additional 738 shares during the period. Rockefeller Capital Management L.P. lifted its position in RingCentral by 70.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock valued at $30,000 after buying an additional 424 shares during the last quarter. Finally, Harvest Fund Management Co. Ltd purchased a new position in RingCentral during the third quarter worth about $30,000. Hedge funds and other institutional investors own 98.61% of the company’s stock.
RingCentral Stock Up 20.1%
The firm has a market capitalization of $3.89 billion, a price-to-earnings ratio of 49.10, a PEG ratio of 1.11 and a beta of 1.14. The business’s 50-day simple moving average is $40.27 and its two-hundred day simple moving average is $36.70.
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.
Featured Stories
- Five stocks we like better than RingCentral
- Plugging In: How Kinder Morgan Powers Up Profits
- Freeport McMoRan Post-Earnings: Why Good Enough May Finally Be Good Enough
- TSMC’s Price Hikes Could Show Which AI Chip Stocks Have Real Pricing Power
- Tesla Just Delivered Record Sales—So Why Did the Stock Sell Off?
Receive News & Ratings for RingCentral Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RingCentral and related companies with MarketBeat.com's FREE daily email newsletter.
