Want to see RNG full AI Analyst Report?
Top Page
RingCentral
(NYSE:RNG)
Select Model
Select Model
Rating:73Outperform
Price Target:
$89.00
▲(35.65% Upside)
Action:Reiterated
Date:10/23/26
RNG scores well primarily on improving fundamentals and cash generation, reinforced by a notably upbeat earnings call with raised guidance, expanding margins, and ongoing debt reduction. Technicals also support the score with an established uptrend. The main offsets are valuation (high P/E) and balance-sheet risk given the recent negative-equity history and meaningful debt load.
Positive Factors
Strong Cash Generation
Strong and rising operating cash flow and free cash flow demonstrate effective conversion of the subscription model into liquidity. This gives RingCentral capacity to reduce debt, fund product development, support shareholder returns, and withstand operating volatility over the next several quarters.
Negative Factors
Moderate Revenue Growth
Revenue growth remains in the mid-single digits despite RingCentral’s broad platform and expanding product set. That pace limits operating leverage from top-line expansion and means the company must rely heavily on margin gains, AI upselling, and retention to compound earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Strong and rising operating cash flow and free cash flow demonstrate effective conversion of the subscription model into liquidity. This gives RingCentral capacity to reduce debt, fund product development, support shareholder returns, and withstand operating volatility over the next several quarters.
Read all positive factors
RingCentral Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Highlights profitability across different business segments, indicating which areas are most lucrative and where there might be room for improvement.
Highlights profitability across different business segments, indicating which areas are most lucrative and where there might be room for improvement.
Data provided by:
The Fly
The FlyRingCentral (RNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.96B
Dividend Yield0.33%
Average Volume (3M)1.58M
Price to Earnings (P/E)10.7
Beta (1Y)1.47
Revenue Growth5.46%
EPS Growth5206.85%
CountryUS
Employees7,378
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)7.83
Shares Outstanding73,736,626
10 Day Avg. Volume1,566,914
30 Day Avg. Volume1,581,631
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)-4.23
Price to Sales (P/S)0.99
P/FCF Ratio4.23
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.93
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda18.17
Forecast
1Y Price Target
$91.00Price Target Upside38.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)5.04
Revenue Forecast (FY)$2.64B
RingCentral Business Overview & Revenue Model
Company Description
RingCentral, Inc. delivers sophisticated cloud-based software-as-a-service (SaaS) solutions designed to empower businesses across North America to communicate, collaborate, and connect seamlessly. These core offerings, including both unified commu...
How the Company Makes Money
RingCentral primarily makes money by selling cloud communications software on a recurring subscription basis. The core revenue stream is subscription revenue from its UCaaS offerings (e.g., business telephony/VoIP, team messaging, video meetings, ...
RingCentral Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call was strongly positive. RingCentral exceeded Q3 revenue guidance, raised full-year revenue, margin, EPS, and free cash flow outlooks, reported record operating margins, expanded AI adoption rapidly, reduced gross debt below $1 billion ahead of schedule, and continued returning capital to shareholders. The main cautions were moderate overall revenue growth and the still-early penetration of AI, particularly through partner channels.Positive Updates
Revenue Beat and Raised Full-Year Guidance
Q3 subscription and total revenue were above the high end of guidance. Subscription revenue was approximately $653 million, up 6% year over year, while total revenue was approximately $676 million, up 5.9%. Full-year fiscal 2026 subscription revenue guidance was raised to $2.563 billion to $2.569 billion, representing growth of 5.6% to 5.9%, and total revenue guidance was raised to $2.650 billion to $2.657 billion, representing growth of 5.4% to 5.6%.
Negative Updates
Moderate Overall Revenue Growth
Although Q3 revenue exceeded guidance, subscription revenue grew 6% year over year and total revenue grew 5.9%. Management described the growth profile as sustainable and stabilized rather than rapid.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Beat and Raised Full-Year Guidance
Q3 subscription and total revenue were above the high end of guidance. Subscription revenue was approximately $653 million, up 6% year over year, while total revenue was approximately $676 million, up 5.9%. Full-year fiscal 2026 subscription revenue guidance was raised to $2.563 billion to $2.569 billion, representing growth of 5.6% to 5.9%, and total revenue guidance was raised to $2.650 billion to $2.657 billion, representing growth of 5.4% to 5.6%.
Read all positive updates
Company Guidance
For fiscal 26, RingCentral raised subscription revenue guidance to $2.563 billion to $2.569 billion, representing growth of 5.6% to 5.9%, total revenue to $2.650 billion to $2.657 billion, representing growth of 5.4% to 5.6%, GAAP operating margin to 9.2% to 9.6% expanding by 460 basis points, non GAAP operating margin to 24% to 24.2%, free cash flow to $620 million to $630 million up 18%, SBC to approximately $240 million to $245 million representing 9% of revenues, fully diluted share count to approximately 87.5 million shares, non GAAP EPS to $5.07 to $5.12 up about 17%, and free cash flow per share to $7.09 to $7.20 per share for the year up 23%; for Q4 26, it expects subscription revenue of approximately $653 million to $659 million, total revenue of approximately $673 million to $680 million, GAAP operating margin of 13.3% to 14.7% up 740 basis points, non GAAP operating margin of 25% to 25.5% up 250 basis points, non GAAP EPS of $1.32 to $1.37 up 14%, and fully diluted share count of approximately 89 million shares, while targeting 20% GAAP operating margin and steady state SBC of 3% to 4% of revenue in the next 3 to 4 years.RingCentral Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
48
Neutral
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.62B | 2.52B | 2.40B | 2.20B | 1.99B | 1.59B |
| Gross Profit | 1.89B | 1.79B | 1.69B | 1.54B | 1.35B | 1.15B |
| EBITDA | 423.43M | 339.12M | 236.58M | 113.09M | -622.68M | -184.05M |
| Net Income | 662.40M | 43.39M | -58.29M | -165.24M | -879.17M | -376.25M |
Balance Sheet | ||||||
| Total Assets | 1.88B | 1.48B | 1.78B | 1.94B | 2.07B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 110.12M | 132.56M | 242.81M | 222.19M | 269.98M | 267.16M |
| Total Debt | 1.03B | 1.48B | 1.58B | 1.59B | 1.68B | 1.45B |
| Total Liabilities | 1.69B | 2.07B | 2.33B | 2.45B | 2.56B | 2.24B |
| Stockholders Equity | 187.06M | -588.12M | -550.92M | -502.57M | -482.79M | 338.97M |
Cash Flow | ||||||
| Free Cash Flow | 684.33M | 587.32M | 400.21M | 323.92M | 100.87M | -244.68M |
| Operating Cash Flow | 706.00M | 617.43M | 483.28M | 399.66M | 191.31M | 152.15M |
| Investing Cash Flow | -103.56M | -107.97M | -109.36M | -90.45M | -87.21M | -396.83M |
| Financing Cash Flow | -636.42M | -623.42M | -351.08M | -358.02M | -98.22M | -127.05M |
RingCentral Technical Analysis
Positive
65.61
Price Trends
73.85
Positive
59.52
Positive
47.82
Positive
Market Momentum
2.23
Negative
60.60
Neutral
60.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNG, the sentiment is Positive. The current price of 65.61 is below the 20-day moving average (MA) of 78.29, below the 50-day MA of 73.85, and above the 200-day MA of 47.82, indicating a bullish trend. The MACD of 2.23 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNG.
RingCentral Risk Analysis
RingCentral disclosed 55 risk factors in its most recent earnings report. RingCentral reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RingCentral Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.75B | 16.56 | 11.28% | 0.92% | 8.08% | -18.39% | |
79 Outperform | $4.04B | 23.59 | 19.50% | ― | 15.57% | ― | |
73 Outperform | $6.96B | 10.65 | -163.48% | 0.33% | 5.46% | 5206.85% | |
72 Outperform | $2.81B | 49.49 | 7.49% | ― | 8.87% | 562.42% | |
62 Neutral | $307.65M | 64.55 | 3.34% | ― | 3.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $595.33M | -29.20 | -24.96% | ― | 16.73% | 35.67% |
* Technology Sector Average
RNG
RingCentral
83.39
53.24
176.60%
EGHT
8X8
2.13
0.18
9.23%
NICE
NICE
121.18
-13.35
-9.92%
FIVN
Five9
37.61
13.95
58.96%
FRSH
Freshworks
15.49
4.11
36.12%
WEAV
Weave Communications
7.40
0.47
6.78%
RingCentral Corporate Events
Regulatory Filings and ComplianceShareholder Meetings
RingCentral Reschedules 2026 Annual Stockholder Meeting Date
Neutral
Oct 9, 2026
RingCentral has rescheduled its 2026 Annual Meeting of Stockholders from November 2, 2026 to December 7, 2026 at 9:00 a.m. Pacific time, aligning the new date within 25 days of the prior year’s December 31, 2025 meeting. As a result, deadlin...
Regulatory Filings and ComplianceShareholder Meetings
RingCentral Sets Earlier Date for 2026 Annual Meeting
Neutral
Sep 28, 2026
RingCentral’s board of directors has set November 2, 2026, at 8:00 a.m. Pacific time as the date and time for its 2026 Annual Meeting of Stockholders, a change that places the meeting more than 30 days before the anniversary of the prior yea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.