RingCentral raises full-year outlook as subscription revenue tops guidance
RingCentral raised its full-year targets after subscription revenue came in above the top of its guidance and margins hit records.
Total revenue rose 5.9% to $676 million in the third quarter, and subscriptions revenue increased 6.0% to $653 million, according to its earnings release filed with an 8-K on Thursday. Non-GAAP EPS was $1.33, up from $1.13 a year earlier.
GAAP diluted EPS was $6.50, inflated by the release of a tax valuation allowance. Excluding that impact, GAAP EPS was $0.28, up 47.4%.
A higher bar for 2026
The company now expects full-year total revenue of $2.650 billion to $2.657 billion and non-GAAP EPS of $5.07 to $5.12. It raised its free cash flow outlook to $620 million to $630 million and lifted its non-GAAP operating margin target to about 24.0% to 24.2%.
Free cash flow for the quarter rose 21.0% to $157 million. RingCentral said it reached its target of about $1 billion in gross debt ahead of schedule, and it repurchased about 0.4 million shares for $18 million.
The company said annual recurring revenue from customers using a native paid AI product is approaching 15%, doubling from a year earlier.
The board declared a quarterly dividend of $0.125 a share, payable Nov. 20.
By the numbers
- Revenue: $676 million, up 5.9%
- Non-GAAP EPS: $1.33, vs. $1.13
- Non-GAAP operating margin: 24.7%
- Free cash flow: $157 million, up 21%
- 2026 non-GAAP EPS guidance: $5.07 to $5.12
Sources
- RingCentral, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0001384905-26-000058
This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.
Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.
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