RingCentral (NYSE:RNG) Releases Quarterly Earnings Results, Misses Expectations By $0.62 EPS

Key Points

• RingCentral missed quarterly earnings expectations, reporting EPS of $0.54 versus the $1.16 consensus estimate, a shortfall of $0.62 per share. The company also posted a net margin of 3.31% and a negative return on equity of 33.75%.
• Management raised guidance despite the earnings miss, lifting FY 2026 EPS guidance to 4.960-5.100 and Q3 2026 EPS guidance to 1.250-1.300. The updated outlook suggests improving expectations for the business ahead.
• Shares rose 2.5% after the report, trading at $38.62 on heavier-than-normal volume. RingCentral also announced a quarterly dividend of $0.075 per share, equal to a 0.8% annualized yield.

RingCentral (NYSE:RNG - Get Free Report) released its quarterly earnings data on Thursday. The software maker reported $0.54 earnings per share for the quarter, missing the consensus estimate of $1.16 by ($0.62), Zacks reports. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. RingCentral updated its FY 2026 guidance to 4.960-5.100 EPS and its Q3 2026 guidance to 1.250-1.300 EPS.

RingCentral Trading Up 2.5%

RingCentral stock traded up $0.96 during trading on Thursday, hitting $38.62. 4,812,871 shares of the company were exchanged, compared to its average volume of 2,067,382. 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. The business's 50 day moving average is $40.28 and its 200 day moving average is $36.62. RingCentral has a 52 week low of $23.59 and a 52 week high of $49.85.

RingCentral Announces Dividend

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

RingCentral News Summary

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

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral raised its outlook for both the current quarter and full year, with Q3 EPS guidance of 1.250-1.300 topping expectations and FY 2026 EPS guidance of 4.960-5.100 also above consensus. RingCentral Announces Second Quarter 2026 Financial Results
• Positive Sentiment: RingCentral announced an expanded strategic partnership with NiCE, including NiCE reselling RingCentral’s UCaaS solution and extending sales of RingCentral Contact Center, which could support future distribution and revenue growth. NiCE and RingCentral Expand Strategic Partnership
• Positive Sentiment: RingCentral also said it is collaborating with OpenAI to accelerate AI-native innovation across its platform, reinforcing its AI strategy and potentially improving product competitiveness. RingCentral and OpenAI Collaborate to Accelerate AI-Native Innovation Across RingCentral
• Neutral Sentiment: The company posted second-quarter EPS of $0.54, which missed analyst expectations by a wide margin, highlighting that profitability remains uneven despite improving guidance. RingCentral Press Release

Insider Buying and Selling at RingCentral

In related news, CFO Vaibhav Agarwal sold 7,047 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $46.17, for a total transaction of $325,359.99. Following the transaction, the chief financial officer directly owned 169,282 shares of the company's stock, valued at $7,815,749.94. This trade represents a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Amy Guggenheim Shenkan sold 1,265 shares of the business's stock in a transaction dated 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 owned 29,372 shares in the company, valued at approximately $1,192,209.48. This trade represents a 4.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 44,498 shares of company stock worth $1,892,586. 7.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On RingCentral

A number of hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC grew its holdings in shares of 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 in the last quarter. Alyeska Investment Group L.P. purchased a new position in RingCentral in the third quarter worth $53,365,000. Marshall Wace LLP grew its stake in RingCentral by 4.4% in the 3rd quarter. Marshall Wace LLP now owns 1,794,978 shares of the software maker's stock valued at $50,870,000 after purchasing an additional 75,709 shares during the period. First Trust Advisors LP increased its position in shares of 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 last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of 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 purchasing an additional 58,967 shares during the period. Hedge funds and other institutional investors own 98.61% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on RNG. Jefferies Financial Group reiterated a "hold" rating and issued a $40.00 price target on shares of RingCentral in a report on Saturday, May 9th. Wells Fargo & Company upped their target price on RingCentral from $32.00 to $43.00 and gave the stock an "equal weight" rating in a research report on Friday, May 8th. Needham & Company LLC reiterated a "buy" rating on shares of RingCentral in a report on Monday. Oppenheimer reissued an "outperform" rating and issued a $50.00 price target on shares of RingCentral in a research report on Friday, May 8th. Finally, Rosenblatt Securities boosted their price target on shares of RingCentral from $45.00 to $50.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $43.00.

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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