RingCentral Inc (RNG)
NYSE:RNG
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Earnings Data
Report Date
Aug 04, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.16Last Year’s EPS
1.06Same Quarter Last Year
Moderate Buy
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong margin expansion, improved GAAP profitability, meaningful free cash flow growth, disciplined capital allocation, and accelerating adoption of AI-enabled products with clear early traction across AIR, ACE, RingEX and CEB. Key operational wins (customer migrations, large partner engagements, R&D investment and leadership recognitions) support a positive outlook. The principal negatives are that top-line growth remains mid-single-digits and AI monetization, while progressing rapidly, is still early in aggregate; some benefits from partner channels are expected to be realized over the next 12–24 months. Overall, financial and operational momentum (profitability, cash generation, margin improvement, AI adoption and customer wins) materially outweighs the risks and early-stage limitations.Company Guidance
Revenue and ARR Growth
Total revenue of approximately $644 million, up 5.3% year-over-year and at the high end of guidance; subscription revenue of ~$623 million, up 5.6% year-over-year. Management cites a $2.7 billion ARR business.
Strong Profitability and Margin Expansion
Non-GAAP operating margin of ~23% in Q1, up ~110 basis points year-over-year and at the high end of guidance; record GAAP operating margin of 7.8% in Q1, improving by more than 600 basis points year-over-year. Full-year guidance raised (GAAP operating margin 8.9%–9.6%; non-GAAP 23.3%–23.7%).
Free Cash Flow and Cash Generation
Generated >$140 million of free cash flow in Q1, up 8% year-over-year; free cash flow per share $1.62, up 15.4% year-over-year. Raised full-year free cash flow outlook to approximately $590M–$605M (~$600M), up ~13% year-over-year and implied free cash flow per share of $6.78–$6.99 (up ~18% YoY).
Operating Expense Discipline and SBC Reduction
Stock-based compensation (SBC) declined ~400 basis points year-over-year to 9% of revenue in Q1; full-year SBC expected ~9% (down from ~11% in 2025) with a medium-term target of 3%–4% of revenue, supporting improved GAAP profitability.
AI Product Adoption and Monetization
Customers using at least one Ring AI product represent >10% of the base and have doubled year-over-year; AI ARR has more than doubled year-over-year and is growing in double digits sequentially. AI-using cohorts show stronger ARPU and net retention above 100%.
Rapid Customer Traction for Key AI and Contact Center Products
AI Receptionist (AIR) has >11,800 paying customers, up >40% quarter-over-quarter; ACE has >5,200 customers, up 85% year-over-year; RingEX formal contact center has >1,700 customers, up >70% year-over-year with more than half utilizing AI; Customer Engagement Bundle (CEB) has >5,000 customers with ~40% attach rate for paid AI products.
Capital Allocation and Balance Sheet Progress
Repurchased ~2.5 million shares for $81 million in Q1, with ~$418 million remaining authorization; paid first quarterly dividend of $0.075 per share; reduced debt by approximately $46 million and lowered net leverage to 1.6x, maintained $355 million undrawn credit capacity and no maturities until 2030.
Product Innovation, Partnerships and Large Customer Wins
Investing >$250 million annually in R&D with growing RCAI spend; launched AIR Pro, branded messaging (RCS), enterprise branded calling and expanded SMS to 190 countries. Notable migrations and wins include Coca-Cola United, a Fortune 500 insurer, New York Mets and Casio. GSP partners (Cox, TELUS, Spectrum) are beginning to resell AI products. Recognized as a leader in 2026 IDC MarketScape and Omdia Universe.
RNG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RNG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $45.39 | $45.63 | +0.53% |
Feb 19, 2026 | $29.34 | $39.43 | +34.40% |
Nov 03, 2025 | $29.89 | $27.42 | -8.25% |
Aug 05, 2025 | $23.58 | $29.94 | +26.97% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does RingCentral Inc (RNG) report earnings?
RingCentral Inc (RNG) is schdueled to report earning on Aug 04, 2026, After Close (Confirmed).
What is RingCentral Inc (RNG) earnings time?
RingCentral Inc (RNG) earnings time is at Aug 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RNG EPS forecast?
RNG EPS forecast for the fiscal quarter 2026 (Q2) is 1.16.
