RingCentral Lifts 2026 Outlook After Q3 Beat; Shares Jump 16% Premarket
RNG has more than doubled off its 52-week low of $24.14.
Summary
RingCentral beat on both lines and raised full-year guidance, and the stock is up about 16% premarket. Q3 revenue came in at $676M, up 5.9% year over year, with subscription revenue of $653M above the high end of guidance. Adjusted EPS of $1.33 beat the $1.27 consensus, non-GAAP operating margin expanded to 24.7% from 22.8%, and free cash flow rose 21% to $157M. The company now guides 2026 revenue to $2.65B-$2.657B versus $2.64B consensus and non-GAAP EPS to $5.07-$5.12 versus $5.03 expected, and lifted its FCF forecast to $620M-$630M. It also hit its $1B gross debt target ahead of schedule, and paid AI products now make up roughly 15% of ARR, more than $400M, doubling year over year. Q4 guidance of $673M-$680M revenue and $1.32-$1.37 EPS is roughly in line with the $672.67M and $1.34 consensus, so the raise is the story rather than the forward quarter.
At the time of this announcement, RNG was trading at $92.25 on NYSE in the Technology sector, with a market capitalization of approximately $6.6B. The 52-week trading range was $24.14 to $83.72. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.