RingCentral (NYSE:RNG) Releases FY 2026 Earnings Guidance

Key Points

• RingCentral raised its FY 2026 earnings guidance to EPS of 4.96-5.10, above the consensus estimate of 4.50. It also guided for about $2.6 billion in revenue, in line with expectations.
• The company also lifted its Q3 2026 guidance to EPS of 1.25-1.30. This suggests management sees continued earnings momentum heading into the next quarter.
• RingCentral’s stock traded higher after the update, while analysts currently maintain a Hold consensus with a target price of $43.00. Recent insider sales and heavy institutional ownership were also noted in the filing.

RingCentral (NYSE:RNG - Get Free Report) updated its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 4.960-5.100 for the period, compared to the consensus estimate of 4.500. The company issued revenue guidance of $2.6 billion-$2.6 billion, compared to the consensus revenue estimate of $2.6 billion. RingCentral also updated its Q3 2026 guidance to 1.250-1.300 EPS.

RingCentral Price Performance

RNG stock traded up $0.96 during midday trading on Thursday, reaching $38.62. 4,573,203 shares of the company's stock traded hands, compared to its average volume of 2,050,976. The business has a 50-day moving average price of $40.28 and a two-hundred day moving average price of $36.62. RingCentral has a fifty-two week low of $23.59 and a fifty-two week high of $49.85. The company has a market capitalization of $3.24 billion, a P/E ratio of 41.08, a PEG ratio of 1.16 and a beta of 1.14.

RingCentral (NYSE:RNG - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. The firm had revenue of $644.20 million during the quarter, compared to the consensus estimate of $642.73 million. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The firm's quarterly revenue was up 5.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.00 EPS. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. As a group, research analysts forecast that RingCentral will post 2.78 earnings per share for the current fiscal year.

RingCentral Dividend Announcement

• It's RingCentral NYSE: RNG You Want In Your 2021 Portfolio, Not Zoom NASDAQ: ZM

The company also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Tuesday, June 2nd were issued a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. RingCentral's dividend payout ratio (DPR) is presently 31.91%.

Analysts Set New Price Targets

A number of brokerages have commented on RNG. Robert W. Baird set a $45.00 price objective on shares of RingCentral in a report on Friday, May 8th. Oppenheimer reiterated an "outperform" rating and issued a $50.00 price target on shares of RingCentral in a research note on Friday, May 8th. Rosenblatt Securities increased their price target on RingCentral from $45.00 to $50.00 and gave the company a "buy" rating in a report on Friday, May 8th. Morgan Stanley raised their price objective on RingCentral from $33.00 to $40.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of RingCentral in a report on Friday, July 17th. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $43.00.

Insider Buying and Selling

In related news, Director Amy Guggenheim Shenkan sold 1,265 shares of the firm's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $40.59, for a total transaction of $51,346.35. Following the transaction, the director directly owned 29,372 shares in the company, valued at $1,192,209.48. This trade represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert I. Theis sold 2,530 shares of the business's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $40.28, for a total transaction of $101,908.40. Following the sale, the director owned 30,834 shares of the company's stock, valued at approximately $1,241,993.52. The trade was a 7.58% 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. In the last quarter, insiders have sold 44,498 shares of company stock worth $1,892,586. 7.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On RingCentral

Institutional investors have recently modified their holdings of the business. AQR Capital Management LLC boosted its stake in RingCentral by 35.4% in the fourth quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker's stock valued at $57,874,000 after acquiring an additional 523,966 shares during the period. Alyeska Investment Group L.P. bought a new stake in shares of RingCentral in the 3rd quarter worth approximately $53,365,000. Marshall Wace LLP lifted its holdings in shares of RingCentral by 4.4% in the 3rd quarter. Marshall Wace LLP now owns 1,794,978 shares of the software maker's stock worth $50,870,000 after purchasing an additional 75,709 shares during the last quarter. First Trust Advisors LP boosted its position in RingCentral by 0.7% during the 4th quarter. First Trust Advisors LP now owns 1,619,722 shares of the software maker's stock valued at $46,778,000 after purchasing an additional 11,534 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in RingCentral by 5.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,207,947 shares of the software maker's stock worth $34,887,000 after buying an additional 58,967 shares during the last quarter. Institutional investors own 98.61% of the company's stock.

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.

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