RingCentral Q2 revenue beats estimates, raises FY outlook

RingCentral

23/07/2026 21:23

    

    Overview
  
AI-powered customer engagement firm's Q2 revenue rose 5.9%, slightly beating analyst expectations
Adjusted EPS for Q2 beat consensus, driven by higher margins and AI product adoption
Company raised quarterly dividend by 67% and lifted full-year revenue, margin, and cash flow outlook

    

    Outlook
  
RingCentral raises full-year 2026 revenue outlook to $2.635 bln-$2.646 bln
Company expects Q3 2026 revenue of $664 mln-$670 mln
RingCentral raises full-year 2026 non-GAAP EPS outlook to $4.96-$5.10

    

    Result Drivers
  
AI PRODUCT ADOPTION - Co said 13% of ARR now comes from customers using paid AI products, doubling year-over-year
OPERATING EFFICIENCIES - Co attributed higher margins and free cash flow to operating efficiencies and reduced stock-based compensation as a percentage of revenue
AI-ENABLED PRODUCT ENHANCEMENTS - Co expanded AI capabilities in customer engagement and workflow tools during the quarter

    
Company press release: ID:nBw6djcB8a

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Revenue
Slight Beat*
$657.01 mln
$650.53 mln (13 Analysts)
Q2 Adjusted EPS
Beat
$1.22
$1.16 (14 Analysts)
Q2 EPS
 
$0.45
 
Q2 Net Income
 
$39.12 mln
 
Q2 Gross Profit
 
$472.31 mln
 
Q2 Income from Operations
 
$50.29 mln
 
Q2 Pretax Profit
 
$42.25 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for RingCentral Inc is $44.89, about 19.2% above its July 22 closing price of $37.66
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

    

    Reuters Recommended Reads
  
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July 22 - Sweden's Sinch Q2 sales, adjusted EBITDA beat on growth in Americas

    
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)