RingCentral (RNG) AI Stock Analysis

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.