RingCentral

RNG

Market cap $3.63B

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.

Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.

RingCentral is leveraging AI innovations to drive customer engagement, product adoption, and higher ARPU, supporting robust growth prospects. RNG raised 2026 revenue guidance to $2.62–$2.64B and EPS to $4.85–$5.01, reflecting strong Q1 results and margin expansion. Valuation remains compelling at 8.5x 2026E EPS and 1.43x forward sales, significantly below sector medians, with profitability and margin gains fueling the upside.

RingCentral is mispriced as a commoditized UCaaS provider, yet its AI monetization and FCF compounding are underappreciated. Q1 2026 results show AI Receptionist customers up 40% QoQ to 11,800, with RCAI-utilizing customers now over 10% of ARR and net retention above 100%. Operating leverage is accelerating: non-GAAP operating margin reached 22.9%, FCF per share grew 15%, and share count declined 6% YoY.

RingCentral is capitalizing on AI-driven contact center solutions, shifting its narrative from legacy provider to applied AI leader. RNG's new AI products are driving strong attach rates and accelerating growth, with Q1 revenue up 5.2% y/y and margin expansion. Recent partnerships with Cox Business and Spectrum Business, plus robust R&D, are expanding RNG's TAM to $150 billion and fueling product innovation.

RingCentral's AI Receptionist handles roughly 11,800 businesses across healthcare, financial services, construction, and legal. Until last week, it answered calls.

RNG's stronger profitability and a higher 2026 outlook in the first quarter are driven by subscription growth, AI product adoption, and expanding margins.

RingCentral, Inc. (RNG) Q1 2026 Earnings Call Transcript