RingCentral lifts 2026 outlook after Q3 revenue beats estimates

RingCentral, Inc. (NYSE: RNG) raised its full-year 2026 financial outlook following third-quarter results that exceeded its prior guidance range. The company reported subscriptions revenue of $653 million, up 6.0% year-over-year, which the filing noted was above the high end of its previous guidance. Total revenue for the quarter reached $676 million, representing a 5.9% increase from the same period in 2025.

Chief Financial Officer Vaibhav Agarwal attributed the stronger performance to durable growth and expanding operating margins. He noted that the company reached its $1 billion gross debt target ahead of schedule, a move he said strengthened the balance sheet while allowing for continued capital returns to shareholders. The company repurchased approximately 0.4 million shares for $18 million during the quarter, leaving approximately $309 million remaining under its current board authorization.

Profitability metrics showed significant improvement on a year-over-year basis. GAAP operating margin expanded to 8.0% from 4.8% in the prior year period, while non-GAAP operating margin rose to 24.7%, an increase of approximately 190 basis points. Non-GAAP diluted EPS climbed to $1.33 from $1.13 a year earlier. GAAP diluted EPS was reported at $6.50, though this figure includes a valuation allowance release; excluding that impact, GAAP diluted EPS was $0.28, up 47.4% from the prior year.

Cash flow generation also accelerated. Net cash provided by operating activities increased 18.8% to $180 million, and free cash flow rose 21.0% to $157 million. The company ended the quarter with $110 million in cash and cash equivalents.

RingCentral’s Board of Directors approved a quarterly cash dividend of $0.125 per share, payable on November 20, 2026, to stockholders of record as of November 6, 2026.

For the fourth quarter of 2026, the company guided for total revenue between $673 million and $680 million and non-GAAP EPS between $1.32 and $1.37. Based on these quarterly figures, RingCentral raised its full-year 2026 guidance for total revenue to a range of $2.650 billion to $2.657 billion and for subscriptions revenue to $2.563 billion to $2.569 billion.

The company also increased its full-year non-GAAP operating margin guidance to approximately 24.0% to 24.2% and non-GAAP EPS to a range of $5.07 to $5.12.

Strategic developments during the quarter included the launch of plugins for ChatGPT and Claude to integrate voice, SMS, and chat data into large language models. RingCentral also expanded its partnership with the Golden State Warriors as their official Agentic AI-Powered Voice Platform and signed Digital Island as its first partner in New Zealand for Agentic Voice AI solutions.