RingCentral (RNG) Q3 2026 Earnings Report
MX:RNG Q3 2026 EPS Results
- Actual EPS
- MXN 24.99
- Consensus EPS
- MXN 23.96
- Beat/Miss
- Beat by +MXN 1.03
- One Year Ago EPS
- MXN 21.24
MX:RNG Q3 2026 Revenue Results
- Actual Revenue
- MXN 12.70B
- Expected Revenue
- MXN 12.54B
- Beat/Miss
- Beat by +MXN 164.34M
- YoY Revenue Growth
- +5.85%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- After Close
- Conference Call
- Thursday, October 22, 2026
MX:RNG Upcoming Earnings
RingCentral's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:RNG Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
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.
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.
- Revenue Beat and Raised Full-Year GuidanceQ3 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%.
- Strong AI Adoption and ARR ContributionRingCentral AI, defined as customers using at least one native paid AI product, represented approximately 15% of total ARR, or more than $400 million, doubling year over year. The company said this customer cohort has meaningfully higher ARPU and net retention, with net retention above 100%.
- AI Receptionist and AI Conversation Expert GrowthAI Receptionist, or AIR, exceeded 22,000 customers, nearly 4x year over year. ACE, the AI Conversation Expert, approached 7,000 customers, up 60% year over year. Management said AIR is sold using usage-based pricing, is gaining traction in small and medium-sized businesses, and is moving upmarket into midmarket and enterprise customers.
- Rapid Growth of Customer Engagement BusinessThe lightweight contact center offering CEB reached more than 14,000 paying customers, growing nearly 50% quarter over quarter. Nearly two-thirds of CEB customers had also purchased one or more AI products.
- AIR Pro Workflow PerformanceRingCentral reported strong adoption of AIR Pro, which provides voice-first omnichannel AI agents for multistep workflows and human handoffs. One technology equipment and procurement provider achieved an over 95% accuracy rate in end-to-end workflow completion during the first month.
- Customer Expansion and Reported ROIA rapidly growing national fitness operator using RingEX, ACE, and AIR expanded its investment with RingCentral by 4x. An industrial parts manufacturer using CEB reported less time on hold, fewer handoffs, and higher satisfaction, while using ACE for scorecard reading and coaching and AIR for context-aware routing. Destination Pet expanded from ACE to AIR Pro for appointment scheduling, confirmations, and record updates.
- Expanded AI Platform IntegrationsRingCentral introduced plugins for OpenAI's ChatGPT and CP connectors for Anthropic's Claude, and was selected as a Claude for Small Business launch partner. The company reported thousands of active customers within less than a month.
- Large-Scale Communications InfrastructureRingCentral's platform carries approximately 40 billion minutes, 14 billion calls, and 4 billion text messages annually. Management described its carrier-grade network, global scale, security, voice expertise, and ability to apply AI to consumer-business interactions as important competitive advantages.
- Broad Distribution and Partnership ExpansionThe company has a global ecosystem of more than 6,000 channel partners and resellers, including AT&T, British Telecom, Charter Communications, Optus, TELUS, and Vodafone. RingCentral extended its partnership with BT Business, added Digital Island as its first partner in New Zealand and Iliad Italia as its first partner in Italy, and continued expanding AI distribution through 17 global service providers.
- Golden State Warriors Fan Engagement PartnershipRingCentral extended its decade-long partnership with the Golden State Warriors and was named the official agentic Voice AI platform for fan engagement.
- Healthy Retention and Core Business ResilienceMonthly net retention remained above 99%, with steady new-customer additions and healthy platform usage. Management characterized the core business as a durable, scaled recurring-revenue business supported by a diversified customer base and mission-critical solutions.
- Record Operating Margins and Lower Stock-Based CompensationSubscription gross margin remained above 80%. Non-GAAP operating margin reached 24.7%, up nearly 200 basis points, while stock-based compensation as a percentage of revenue declined 50 basis points. GAAP operating margin reached a record 8%, an improvement of 23 basis points.
- Improved EarningsExcluding a $545 million noncash benefit from the release of a valuation allowance against certain domestic deferred tax assets, diluted EPS was $0.28, up 47% year over year. Non-GAAP EPS increased about 18% to $1.33.
- Record Free Cash Flow and Raised OutlookQ3 free cash flow was $157 million, up 21% year over year. Full-year free cash flow guidance was raised to $620 million to $630 million, or $625 million at the midpoint, representing nearly 24% of revenue and an 18% increase. Full-year free cash flow per share was guided to $7.09 to $7.20, up 23%.
- Debt Reduction and Balance-Sheet StrengtheningRingCentral reduced gross debt by just over $110 million in Q3 by repaying its 8.5% high-yield notes, bringing net leverage to 1.3x. Gross debt was below $1 billion as of the call, ahead of schedule. The company reported no debt maturities until 2030 and $305 million of undrawn credit capacity.
- Shareholder Returns and Reduced Share CountThe company spent approximately $18 million on share repurchases during Q3 and paid a dividend of $0.0125 per share. Diluted share count declined about 5% year over year to approximately 87.7 million shares, with more than $300 million remaining under the share repurchase authorization.
- Raised Profitability and EPS GuidanceFiscal 2026 GAAP operating margin guidance was raised to 9.2% to 9.6%, expanding by 460 basis points, while non-GAAP operating margin guidance was raised to 24% to 24.2%. Non-GAAP EPS guidance was raised to $5.07 to $5.12, up about 17%, and Q4 non-GAAP EPS was guided to $1.32 to $1.37, up 14%.
- Progress Toward Long-Term Margin TargetsManagement reaffirmed its confidence in reaching a 20% GAAP operating margin target and a steady-state stock-based compensation level of 3% to 4% of revenue over the next 3 to 4 years. It said roughly half of the fiscal 2026 GAAP margin expansion is expected from non-GAAP margin improvement and roughly half from stock-based compensation reduction.
- Continued Product and Technology InvestmentManagement said annual product and technology spending remains healthy at over $250 million. The company stated that it can execute its roadmap with internal capabilities while evaluating acquisition opportunities opportunistically.
- Capital Allocation FlexibilityManagement said the combination of gross debt below $1 billion, substantial cash generation, and the stronger balance sheet provides flexibility to continue investing in innovation while returning capital through share buybacks and dividends.
- Stable Partner Transition and Channel MomentumManagement said the transition involving the ACO partnership was orderly and that it was not aware of any related churn. The company described the broader channel as performing positively and said voice remains central to business communications.
MX:RNG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 25.43- | 22.17 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 23.9624.99 | 21.24 | 17.70% (+3.76) | |
| Jul 23, 2026 | 2026 (Q2) | 21.8922.93 | 19.92 | 15.09% (+3.01) | |
| May 07, 2026 | 2026 (Q1) | 21.9722.55 | 18.79 | 20.00% (+3.76) | |
| Feb 19, 2026 | 2025 (Q4) | 21.4222.17 | 18.42 | 20.41% (+3.76) | |
| Nov 03, 2025 | 2025 (Q3) | 20.1821.24 | 17.85 | 18.95% (+3.38) | |
| Aug 05, 2025 | 2025 (Q2) | 19.2219.92 | 17.1 | 16.48% (+2.82) | |
| May 08, 2025 | 2025 (Q1) | 18.0218.79 | 16.35 | 14.94% (+2.44) | |
| Feb 20, 2025 | 2024 (Q4) | 18.1718.42 | 16.16 | 13.95% (+2.26) | |
| Nov 07, 2024 | 2024 (Q3) | 17.3517.85 | 14.66 | 21.79% (+3.19) |
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
