RingCentral, Inc. (RNG) Earnings
RingCentral, Inc. is expected to report next earnings on August 4, 2026 (in NaN days), with a consensus EPS estimate of $1.17. RNG has beaten EPS estimates in 12 of its last 12 reported quarters (average surprise +3.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $1.17 | $1.20 | +2.6% | $644M | +0.2% |
| Feb 19, 2026 | $1.14 | $1.18 | +3.5% | $644M | +0.6% |
| May 8, 2025 | $0.96 | $1.00 | +4.2% | $612M | -1.5% |
| Feb 20, 2025 | $0.96 | $0.98 | +2.1% | $615M | +0.3% |
| Nov 7, 2024 | $0.92 | $0.95 | +3.3% | $609M | -0.6% |
| Aug 1, 2024 | $0.88 | $0.91 | +3.4% | $593M | -1.4% |
| Feb 20, 2024 | $0.83 | $0.86 | +3.6% | $571M | +0.1% |
| Feb 15, 2023 | $0.59 | $0.60 | +1.7% | $525M | -0.5% |
| Nov 9, 2022 | $0.51 | $0.55 | +7.8% | $509M | +1.3% |
| Aug 2, 2022 | $0.40 | $0.45 | +12.5% | $487M | +1.6% |
| Feb 22, 2022 | $0.37 | $0.39 | +5.4% | $448M | +2.9% |
| May 4, 2021 | $0.25 | $0.27 | +8.0% | $352M | +3.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Vlad noted the company had a strong start to the year with solid quarter, record GAAP and non-GAAP operating margins, reduced stock-based compensation, paid down debt, and returned capital to shareholders including first dividend. RingCentral is leveraging AI as a key driver of long-term growth and profitability. Their AI product portfolio adoption is strong with customers using AI adopting more products, spending more, and staying longer. Examples like Cartelligent, Worldwide Steel Buildings, etc. show benefits of AI products. R&D spend is leading to new innovations like branded messaging via RCS, expanded SMS support, and new products like Customer Engagement Bundle (CEB) with strong start.
Guidance
For fiscal 2026, subscription revenue raised to $2.54 billion to $2.56 billion (4.7 - 5.5% growth). Total revenue raised to $2.62 billion to $2.64 billion (4.2 - 5% growth). Gap operating margin raised to 8.9 - 9.6%, expanding 450 basis points year over year. Non-gap operating margin raised to 23.3 - 23.7%, expanding 100 basis points year over year. Free cash flow raised to $590 million to $605 million, up 13% year over year. SPC in range of $240 million to $245 million. Fully diluted share count approximately 86.5 to 87 million shares. Non-GAAP EPS between $4.85 to $5.01. For Q2 2026, subscription revenue expected $628 million to $633 million. Total revenue expected $648 million to $653 million. Gap operating margin 6.6% to 7.6%, up 110 basis points year over year. Non-gap operating margin approximately 23 to 23.2%, up 50 basis points year over year. Non-gap EPS $1.15 to $1.17. SPC in range $58 million to $62 million.
Segment performance
Total revenue was approximately $644 million, up 5.3% year over year. Subscription revenue was approximately $623 million, up 5.6% year over year. Non-GAAP operating margin reached approximately 23%, up 110 basis points year over year. SPC as a percentage of revenue declined approximately 400 basis points year over year to 9% in Q1. For the full year, SPC is expected to be approximately 9% of revenue in 2026, down from approximately 11% in 2025. GAAP operating margin was 7.8% in Q1, and for the full year, it's expected to improve from 4.8% in 2025 to more than 9% in 2026. Free cash flow in Q1 was more than $140 million, up 8% year over year. Full year free cash flow outlook is raised to approximately $600 million. ARR from customers using at least one paid AI product has more than doubled year-over-year and is growing in double digits sequentially.
Risks & headwinds
The remarks include forward-looking statements subject to risks and uncertainties beyond control, actual results may differ materially. For a complete discussion of risks, refer to SEC filings and earnings release.
Analyst Q&A
Q: Talk about where new AI hybrid agent communications industry will be 5 or 10 years from now, how pervasive AI will be in voice communications, new products and services, and how rapidly AI models are improving.
A: Vlad said models are improving rapidly, hybrid world likely with some interactions best handled by AI but human in loop still needed. For example, AI may not be able to provide medical advice legally, so hybrid of AI before, during, and after human involvement.
Q: Explain where business will break decisively above 5% revenue growth.
A: Vlad said they have green shoots with AI portfolio and customer engagement portfolio growing, large recurring revenue model, diversified customer base, and spending on R&D.
Q: Balance growth and margin priorities in AI initiatives and glide path to 20% gap operating margin.
A: Vaibhav said operating margins have doubled, margin expansion is structural with recurring revenue model, discipline cost management, reducing SPC, and gap operating margins growing.
Q: Trajectory of free cash flow and capital allocation priorities.
A: Brian was told free cash flow has improved with structural drivers, capital allocation includes reinvesting in innovation, reducing debt, and returning capital via buybacks and dividends.
Q: Pricing model change with AI and barriers to competition.
A: Vlad said pricing is hybrid, combination model, and barriers to competition include their global network processing billions of minutes and calls, and being able to offer turnkey solution with AI and human agents on same platform.
Q: Upselling existing customers to AIR Pro.
A: Jim was told AIR and AIR Pro complement each other, AIR Pro can do more complex workflows, and they are in early access program with customers buying both for different use cases.