RingCentral (NYSE:RNG) Shares Gap Up on Better-Than-Expected Earnings

Shares of RingCentral, Inc. (NYSE:RNG) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 changing hands.

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 net margin of 4.27% and a negative return on equity of 34.98%. The firm had revenue of $657.01 million for the quarter, compared to the consensus estimate of $650.53 million. During the same quarter in the previous year, the company earned $1.06 EPS. The company’s revenue for the quarter 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 company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be issued a $0.125 dividend. The ex-dividend date is Thursday, August 6th. This is a positive change from RingCentral’s previous quarterly dividend of $0.07. This represents a $0.50 annualized dividend and a yield of 1.0%. RingCentral’s dividend payout ratio (DPR) is presently 31.91%.

More RingCentral News

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported Q2 EPS of $1.22 versus $1.16 expected and revenue of $657.0 million versus $650.5 million expected, showing a solid beat on both the top and bottom lines. RingCentral Q2 Earnings Report
• Positive Sentiment: The company raised Q3 2026 guidance to EPS of $1.25-$1.30 and revenue of $664 million-$670 million, both above consensus, and lifted FY 2026 EPS guidance to $4.96-$5.10. RingCentral Financial Results
• Positive Sentiment: Management and recent commentary point to stronger subscription growth, higher margins, and expanding AI adoption, which are supporting the improved growth outlook. Zacks Q2 Earnings Article
• Positive Sentiment: RingCentral also announced a 66.7% increase in its quarterly dividend to $0.125 per share, signaling confidence in cash generation and capital returns. Insider Monkey Article
• Neutral Sentiment: Mizuho raised its price target to $40 but kept a neutral rating, which is below the current trading level and suggests some caution on valuation. Mizuho Price Target Update
• Neutral Sentiment: Rosenblatt reaffirmed a buy rating with a $50 target, broadly reinforcing the positive post-earnings sentiment. Rosenblatt Rating Update

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Rosenblatt Securities reissued a “buy” rating and issued a $50.00 price target on shares of RingCentral in a research note on Friday. Mizuho boosted their target price on shares of RingCentral from $38.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday. Wells Fargo & Company increased their target price on shares of RingCentral from $32.00 to $43.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. Weiss Ratings reissued a “hold (c)” rating on shares of RingCentral in a research note on Friday, July 17th. Finally, Oppenheimer restated an “outperform” rating and issued a $50.00 price target on shares of RingCentral in a report on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, RingCentral currently has a consensus rating of “Hold” and an average target price of $44.40.

Insider Activity

In other news, Director Robert I. Theis sold 2,530 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $40.28, for a total transaction of $101,908.40. Following the completion of the sale, the director directly owned 30,834 shares of the company’s stock, valued at $1,241,993.52. The trade was a 7.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 7,047 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $46.17, for a total transaction of $325,359.99. Following the completion of the sale, the chief financial officer owned 169,282 shares in the company, valued at $7,815,749.94. This represents a 4.00% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 44,498 shares of company stock valued at $1,892,586. 7.30% of the stock is currently owned by insiders.

Institutional Trading of RingCentral

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RNG. WealthCollab LLC raised its stake in shares of RingCentral by 59.7% in the first quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock worth $26,000 after purchasing an additional 259 shares during the last quarter. Meeder Asset Management Inc. boosted its position in shares of RingCentral by 127.3% during the first 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 last quarter. EverSource Wealth Advisors LLC boosted its position in shares of RingCentral by 269.3% during the fourth 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 last quarter. Rockefeller Capital Management L.P. grew its holdings in RingCentral by 70.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock worth $30,000 after buying an additional 424 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new stake in RingCentral during the third quarter worth $30,000. 98.61% of the stock is owned by institutional investors.

RingCentral Trading Up 25.1%

The firm has a market capitalization of $4.05 billion, a PE ratio of 38.66, a price-to-earnings-growth ratio of 1.14 and a beta of 1.14. The business has a 50-day moving average of $40.41 and a 200 day moving average of $36.78.

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.