RingCentral raises full-year outlook after Q1 revenue beat

RingCentral

07/05/2026 22:01

Overview

US AI-powered customer engagement firm's Q1 revenue rose 5%, slightly beating analyst expectations

Company raised full-year outlook on revenue, margins, and free cash flow

RingCentral repurchased $81 mln in shares and declared a quarterly dividend

Outlook

RingCentral raises full-year 2026 revenue outlook to $2.62 bln-$2.64 bln

Company lifts 2026 non-GAAP EPS forecast to $4.85-$5.01

RingCentral sees Q2 revenue of $648 mln-$653 mln and non-GAAP EPS of $1.15-$1.17

Result Drivers

AI PRODUCT ADOPTION - ARR from customers using paid AI products more than doubled year-over-year and now exceeds 10% of total ARR

COST MANAGEMENT - Reduced stock-based compensation expense as a percentage of revenue by 420 basis points year-over-year

PRODUCT INNOVATION - Launched new AI agent platforms and expanded global messaging and branded communications capabilities

Company press release: ID:nBw8pXjT6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$644.20 mln
$642.73 mln (14 Analysts)
Q1 Net Income
$30.62 mln
Q1 Gross Profit
$464.77 mln
Q1 Income from Operations
$50.03 mln
Q1 Pretax Profit
$34.11 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 "buy" and the breakdown of recommendations is 7 "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 $35.50, about 22.4% below its May 6 closing price of $45.72

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago

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.)