RingCentral (NYSE:RNG) Releases Earnings Results, Misses Estimates By $0.62 EPS

RingCentral (NYSE:RNG) issued its quarterly earnings results on Thursday. The software maker reported $0.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.16 by ($0.62), Zacks reports. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%. RingCentral updated its FY 2026 guidance to 4.960-5.100 EPS and its Q3 2026 guidance to 1.250-1.300 EPS.

RingCentral Price Performance

Shares of RingCentral stock traded up $0.96 during trading hours on Thursday, reaching $38.62. The company had a trading volume of 4,812,871 shares, compared to its average volume of 2,067,382. RingCentral has a one year low of $23.59 and a one year high of $49.85. The business has a fifty day simple moving average of $40.28 and a 200 day simple moving average of $36.62. The firm has a market cap of $3.24 billion, a PE ratio of 41.08, a price-to-earnings-growth ratio of 1.16 and a beta of 1.14.

RingCentral Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Tuesday, June 2nd were given a dividend of $0.075 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $0.30 annualized dividend and a dividend yield of 0.8%. RingCentral’s dividend payout ratio is currently 31.91%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Robert W. Baird set a $45.00 target price on RingCentral in a research report on Friday, May 8th. Oppenheimer reaffirmed an “outperform” rating and set a $50.00 price target on shares of RingCentral in a research report on Friday, May 8th. Jefferies Financial Group reiterated a “hold” rating and set a $40.00 price target on shares of RingCentral in a research note on Saturday, May 9th. Weiss Ratings reissued a “hold (c)” rating on shares of RingCentral in a report on Friday, July 17th. Finally, Morgan Stanley boosted their price objective on RingCentral from $33.00 to $40.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Three analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, RingCentral currently has an average rating of “Hold” and an average price target of $43.00.

RingCentral News Roundup

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral raised its outlook for both the current quarter and full year, with Q3 EPS guidance of 1.250-1.300 topping expectations and FY 2026 EPS guidance of 4.960-5.100 also above consensus. RingCentral Announces Second Quarter 2026 Financial Results
• Positive Sentiment: RingCentral announced an expanded strategic partnership with NiCE, including NiCE reselling RingCentral’s UCaaS solution and extending sales of RingCentral Contact Center, which could support future distribution and revenue growth. NiCE and RingCentral Expand Strategic Partnership
• Positive Sentiment: RingCentral also said it is collaborating with OpenAI to accelerate AI-native innovation across its platform, reinforcing its AI strategy and potentially improving product competitiveness. RingCentral and OpenAI Collaborate to Accelerate AI-Native Innovation Across RingCentral
• Neutral Sentiment: The company posted second-quarter EPS of $0.54, which missed analyst expectations by a wide margin, highlighting that profitability remains uneven despite improving guidance. RingCentral Press Release

Insider Activity at RingCentral

In related news, Director Robert I. Theis sold 2,530 shares of the stock in a transaction dated 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 approximately $1,241,993.52. This represents a 7.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 3,615 shares of the firm’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $43.00, for a total value of $155,445.00. Following the completion of the transaction, the chief accounting officer owned 68,100 shares of the company’s stock, valued at approximately $2,928,300. This represents a 5.04% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 44,498 shares of company stock worth $1,892,586 in the last 90 days. 7.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On RingCentral

Several hedge funds have recently added to or reduced their stakes in RNG. Invesco Ltd. boosted its holdings in shares of RingCentral by 43.3% in the 4th quarter. Invesco Ltd. now owns 218,456 shares of the software maker’s stock worth $6,309,000 after purchasing an additional 65,975 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of RingCentral by 928.0% during the 4th quarter. Corient Private Wealth LLC now owns 86,537 shares of the software maker’s stock valued at $2,499,000 after buying an additional 78,119 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its position in RingCentral by 108.0% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 20,737 shares of the software maker’s stock worth $599,000 after buying an additional 10,765 shares during the last quarter. Empowered Funds LLC lifted its position in RingCentral by 25.5% in the 4th quarter. Empowered Funds LLC now owns 64,549 shares of the software maker’s stock worth $1,864,000 after buying an additional 13,134 shares during the last quarter. Finally, XTX Topco Ltd boosted its stake in RingCentral by 30.7% in the fourth quarter. XTX Topco Ltd now owns 124,794 shares of the software maker’s stock worth $3,604,000 after buying an additional 29,281 shares in the last quarter. Institutional investors own 98.61% of the company’s stock.

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.