RingCentral Stock Surges After Strong Q2 Results and AI Growth
Shares of RingCentral (RNG) surged over 25% in the week following its second-quarter earnings report, driven by strong financial performance and growth in artificial intelligence-powered solutions. The cloud communications provider reported a 5.9% year-over-year revenue increase to $657 million, with AI tool sales doubling and now contributing 13% of annual recurring revenue. The company improved profitability metrics, including an adjusted operating margin rise from 22.5% to 23.4%, which helped push adjusted earnings per share up by 15%. Free cash flow grew 24.8% year-over-year to $180 million and reached a free cash flow margin of 27.4%. RingCentral used this strong performance to increase its quarterly dividend by 67%. The positive results led management to raise full-year guidance, projecting adjusted earnings per share between $4.96 and $5.10 in fiscal year 2026 and free cash flow of $615 million to $625 million.
Tickers: $RNG
Topics: AI dividend increase free cash flow