EarningsQ2 2026 Earnings Report
MX:RNG Q2 2026 EPS Results
Actual EPS$21.91
Consensus EPS$20.93
Beat/MissBeat by +$0.99
One Year Ago EPS$19.04
MX:RNG Q2 2026 Revenue Results
Actual Revenue$11.80B
Expected Revenue$11.69B
Beat/MissBeat by +$116.41M
YoY Revenue Growth+5.90%
Earnings Announcement Details
QuarterQ2 2026
Date07/23/2026
TimeAfter Close
Conference CallThursday, July 23, 2026
MX:RNG Upcoming Earnings
RingCentral's next earnings date is estimated for November 9, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:RNG Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. RingCentral exceeded Q2 guidance across key metrics, expanded operating margins, generated substantial free cash flow, reduced debt and dilution, raised its dividend and full-year outlook, and reported rapid growth in AI adoption and product usage. The main cautionary points were mid-single-digit revenue growth, AI products remaining early in their ramp, a subscription gross margin result that was lighter than an analyst expected, and the need to manage AI-related token costs and quarterly free cash flow variability.Company Guidance
Q2 Results Exceeded Guidance
Management said Q2 exceeded the high end of guidance across all key metrics, including total revenue, subscription revenue, GAAP operating margin, non-GAAP operating margin, and free cash flow.
Revenue Growth Above Expectations
Q2 total revenue was approximately $657 million, up 5.9% year-over-year, while subscription revenue was approximately $634 million, up 5.8% year-over-year. Both exceeded the high end of guidance.
Strong Operating Margin Expansion
Subscription gross margin remained above 80%. Non-GAAP operating margin reached 23.4%, up nearly 90 basis points year-over-year and above the high end of guidance. GAAP operating margin was 7.7%, improving by more than 170 basis points year-over-year.
GAAP Margin Target Moved Forward
Management said disciplined profitability efforts have put the company ahead of schedule and that RingCentral now expects to reach its 20% GAAP operating margin target within two to three years, a year ahead of schedule.
Lower Stock-Based Compensation
Stock-based compensation as a percentage of revenue declined approximately 150 basis points year-over-year to 9% in Q2. The company remains on track for SBC to be approximately 9% of revenue in 2026, down 180 basis points from 2025, with a medium-term target range of 3%-4% of total revenue.
Free Cash Flow Growth and Raised Outlook
Q2 free cash flow was $180 million, up 25% year-over-year. The company raised its full-year free cash flow outlook by approximately $20 million to $615 million-$625 million, with a midpoint of $620 million, representing more than 23% of revenue and 17% year-over-year growth.
Free Cash Flow Per Share Expected Above $7
Management now expects full-year free cash flow per share of $7.07-$7.23, up 23% year-over-year, and said it expects to deliver more than $7 per share for the full year.
Dividend Increase
The board approved an increase in the quarterly dividend to $0.125 per share, reflecting management's stated confidence in the durability of growth and long-term free cash flow generation.
Debt Reduction and Balance Sheet Progress
RingCentral reduced overall debt by approximately $85 million during Q2 and by about $130 million in the first half of 2026. Net leverage declined to 1.5x, and the company remains on track to reduce gross debt to $1 billion by year-end. There are no maturities until 2030, and the company has $355 million of undrawn credit capacity.
Share Repurchases and Reduced Dilution
The company repurchased approximately 2.2 million shares for approximately $94 million during Q2. Diluted share count declined 6% year-over-year to approximately 87 million shares, with approximately $326 million remaining under the repurchase authorization.
Raised Fiscal 2026 Guidance
Fiscal 2026 subscription revenue guidance was raised to $2.55 billion-$2.561 billion, representing growth of 5.1%-5.5%. Total revenue guidance was raised to $2.635 billion-$2.646 billion, representing growth of 4.8%-5.2%. GAAP operating margin guidance was raised to 9%-9.7%, non-GAAP operating margin guidance to approximately 23.6%-24%, and non-GAAP EPS guidance to $4.96-$5.10, up 15% year-over-year.
Positive Q3 Outlook
For Q3 2026, management expects subscription revenue of $643 million-$649 million, total revenue of $664 million-$670 million, GAAP operating margin of 7.2%-8.6%, non-GAAP operating margin of 23.5%-24%, and non-GAAP EPS of $1.25-$1.30, up 13% year-over-year.
Growing AI Customer Adoption
ARR from customers using at least one native paid AI product represented approximately 13% of ARR, having doubled year-over-year. This customer cohort has net retention well above 100% and meaningfully higher ARPU than the rest of the customer base.
AIR and ACE Customer Growth
The company ended Q2 with more than 16,000 paying AIR or AI Receptionist customers, up 400% year-over-year. ACE, or AI Conversation Expert, had more than 6,300 customers, growing more than 70% year-over-year. ARR from AI-led new products grew nearly 60% during the first half of the year.
Customer Engagement Bundle Momentum
The Customer Engagement Bundle, which adds call queues, shared SMS inboxes, and analytics to RingEX, served more than 9,600 customers and grew more than 80% sequentially. Management said the bundle has a healthy attach rate for AI products.
AI Product Customer Outcomes
VGM Group deployed AIR, AVA, and ACE on top of RingEX. AIR recovered 45% of calls previously lost to abandonment, AVA eliminated manual note-taking, and ACE provided call visibility and coaching. A BPO using AIR Pro with CRM integration achieved a containment rate above 85% with no live-agent transfers.
AIR Customer Efficiency Benefits
Based on a recent survey, AIR customers reduced missed-call rates from an average of 20% to close to zero. GTR Insurance said AIR was saving the business $6,000 per month.
Record ACE Adoption
Management reported record ACE adoption, with the number of calls processed jumping at double digits quarter-over-quarter. One of the nation's largest healthcare workforce providers purchased nearly 700 ACE licenses to improve nursing placement conversation rates and recruitment training and coaching.
Expansion of AI and Product Portfolio
AIR Pro was enhanced with more than 100 pre-built integrations and capabilities to handle multiple intents, retain context across conversations, and ask targeted follow-up questions. RingCX also added autonomous outreach and intelligent handoffs that transfer full context to live agents.
AI-Native Company Progress
Most product and technology employees, in partnership with OpenAI, completed an AI-native project with an over 99% success rate. Management also said more than 2,000 employees had completed a native AI project.
Continued Investment in Innovation
RingCentral is investing over a quarter of a billion dollars annually in R&D to expand its portfolio, deepen its competitive moat, and accelerate innovation. Management said more of the $250 million-plus annual innovation investment is going toward AI.
Large Platform Scale and Data Assets
RingCentral's carrier-grade platform serves approximately 600,000 businesses across 45 countries, supports international numbers in nearly 100 countries, carries roughly 40 billion voice minutes annually, and handles more than 3 billion text messages. Both voice minutes and text messages are growing faster than the user base, and the platform contains billions of recorded and transcribed conversations.
Customer Expansion and Higher Wallet Share
A large U.S. automotive dealership group that began with RingEX later expanded into RingCX, AI quality management, AIR, and call queues. Management said the customer's ARR more than doubled over the last several months.
Channel and Partner Momentum
RingCentral has more than 16,000 channel partners and resellers, and about half of AI ARR originated from the channel. Management also said easily half of new sales and channel sales include AI, while half of AI sales comes from the channel.
Expanded NiCE Partnership
RingCentral and NiCE expanded their partnership so NiCE will market and sell RingEX together with CXone, while RingCentral continues to offer NiCE CXone. Management said the expanded relationship could provide a meaningful new channel into NiCE's enterprise customer base.
Avaya Relationship Restructuring
RingCentral restructured its relationship with Avaya. RingCentral will remain Avaya's exclusive multi-tenant cloud UCaaS offering, while existing Avaya Cloud Office customers and partners will transition directly to the RingCentral platform and brand.
Industry Recognition for RingCX
Aragon Research and Nucleus Research both named RingCX a leader in their respective contact center reports, recognizing its AI investment, workforce engagement capabilities, and embedded contact center experiences.
Higher Usage and Business Messaging Growth
Minutes usage is increasing across the platform ahead of revenue growth, with voice calls and text messages growing meaningfully faster than the user base. Business SMS is growing at a strong double-digit rate from a meaningful base.
Healthy Customer Trends
Management reported steady new customer additions and improving monthly net retention above 99%. AI-led products are increasing ARPU and net retention while expanding the total addressable market the company is pursuing.
Recognition as a Best Company
RingCentral was named to TIME's list of America's Best Companies for 2026, recognizing employee satisfaction, financial performance, and sustainability over a three-year period.
MX: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