RingCentral (NYSE:RNG) Shares Gap Up After Better-Than-Expected Earnings

Shares of RingCentral, Inc. (NYSE:RNG) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $79.42, but opened at $90.98. RingCentral shares last traded at $83.2420, with a volume of 726,591 shares.

The software maker reported $1.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.05. The firm had revenue of $676.04 million during the quarter, compared to analyst estimates of $667.30 million. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%. The company’s revenue was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.13 earnings per share.

RingCentral Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be given a dividend of $0.1250 per share. This represents a $0.50 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, November 6th. RingCentral’s dividend payout ratio is presently 40.00%.

RingCentral News Roundup

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported third-quarter EPS of $1.33, above the $1.28 consensus estimate, while revenue of $676.04 million exceeded expectations of $667.30 million and increased 5.8% year over year. EPS also rose from $1.13 in the prior-year quarter. RingCentral third-quarter earnings report
• Positive Sentiment: The company raised fourth-quarter guidance to EPS of $1.32–$1.37, well above the $1.24 consensus, and revenue of $673 million–$680 million versus expectations of $672.6 million. RingCentral fourth-quarter guidance
• Positive Sentiment: Full-year 2026 EPS guidance increased to $5.07–$5.12, compared with the $4.61 consensus, while revenue guidance of approximately $2.7 billion topped the $2.6 billion estimate. RingCentral raises 2026 outlook
• Positive Sentiment: Coverage highlighted improving cash flow, margin expansion and stronger monetization of RingCentral’s AI offerings, supporting the case for better operating leverage. RingCentral Q3 2026 AI monetization
• Positive Sentiment: Analysts raised their price targets: Morgan Stanley increased its target to $91 while maintaining an “equal weight” rating, and Needham raised its target to $110 with a “buy” rating. Analyst price-target changes
• Neutral Sentiment: RingCentral announced a quarterly dividend of $0.125 per share, equivalent to a $0.50 annualized payout and a modest 0.5% yield. RingCentral dividend and partnership news
• Negative Sentiment: Levi & Korsinsky announced an investigation into possible breaches of fiduciary duties by certain RingCentral officers and directors, creating a legal and governance overhang. RingCentral shareholder investigation

Analyst Ratings Changes

A number of equities research analysts have issued reports on RNG shares. Piper Sandler reissued a “neutral” rating and issued a $94.00 price target on shares of RingCentral in a report on Friday. Mizuho set a $85.00 price target on RingCentral in a research note on Friday. Wells Fargo & Company lifted their price target on shares of RingCentral from $43.00 to $65.00 and gave the company an “equal weight” rating in a report on Tuesday, August 25th. Jefferies Financial Group reissued a “hold” rating and set a $75.00 price objective on shares of RingCentral in a research report on Friday. Finally, Royal Bank Of Canada initiated coverage on shares of RingCentral in a research report on Thursday, September 3rd. They issued an “outperform” rating and a $85.00 target price for the company. Five investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $86.75.

Insider Activity at RingCentral

In other RingCentral news, Director Amy Shenkan sold 1,264 shares of the firm’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $78.89, for a total transaction of $99,716.96. Following the completion of the sale, the director directly owned 28,108 shares in the company, valued at approximately $2,217,440.12. This trade represents a 4.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 4,172 shares of the firm’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $70.36, for a total transaction of $293,541.92. Following the sale, the chief accounting officer directly owned 65,692 shares of the company’s stock, valued at $4,622,089.12. This trade represents a 5.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 84,625 shares of company stock worth $6,024,953 in the last ninety days. 7.30% of the stock is currently owned by company insiders.

Institutional Trading of RingCentral

A number of large investors have recently made changes to their positions in RNG. Fortitude Family Office LLC grew its position in RingCentral by 128.1% in the 3rd quarter. Fortitude Family Office LLC now owns 349 shares of the software maker’s stock worth $26,000 after purchasing an additional 196 shares during the period. Elevation Wealth Partners LLC boosted its position in shares of RingCentral by 119.3% in the third quarter. Elevation Wealth Partners LLC now owns 546 shares of the software maker’s stock worth $41,000 after purchasing an additional 297 shares during the period. WealthCollab LLC increased its stake in RingCentral by 59.7% in the 1st quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock worth $26,000 after buying an additional 259 shares in the last quarter. Meeder Asset Management Inc. grew its position in shares of RingCentral by 127.3% during the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker’s stock worth $27,000 after purchasing an additional 410 shares in the last quarter. Finally, Rockefeller Capital Management L.P. raised its stake in RingCentral by 70.5% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock valued at $30,000 after purchasing an additional 424 shares during the period. 98.61% of the stock is currently owned by institutional investors.

RingCentral Stock Performance

The stock has a fifty day moving average of $73.63 and a 200 day moving average of $54.03. The company has a market capitalization of $7.13 billion, a PE ratio of 68.27, a PEG ratio of 1.43 and a beta of 1.10.

About RingCentral

RingCentral, Inc is a provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company’s offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.