RNG

RingCentral stock rose 5% after raising its full-year free cash flow forecast. The communications software provider reported Q3 revenue growth of 5.9% and highlighted AI as a major growth opportunity, with AI product customers now representing over $400 million in annual recurring revenue and doubling year-over-year. The company also improved profitability with adjusted operating margins increasing to 24.7% and free cash flow rising 21% to $157 million.

RingCentral reported $676.04 million in revenue for Q3 2026, up 5.9% year-over-year, beating the consensus estimate of $666.96 million by 1.36%. EPS of $1.33 exceeded expectations of $1.27 by 4.72%.

Subscription revenues grew 6% to $652.94 million, while subscription gross margins remained strong at 80.6%. The stock has gained 4% over the past month and holds a Zacks Rank #2 (Buy) rating.

RingCentral reported Q3 2026 earnings of $1.33 per share, beating consensus estimates of $1.27, with revenues of $676.04 million exceeding expectations by 1.36%. The company has outperformed the market by 185.4% year-to-date and received a Zacks Rank #2 (Buy) rating. Globant, another software services company, is expected to report declining earnings and revenues in its upcoming quarter.

RingCentral (RNG) has surged 182.6% year-to-date, hitting a new 52-week high of $82.21. The company has consistently beaten earnings estimates for four consecutive quarters, with a Zacks Rank #2 (Buy) rating. While trading at a premium valuation of 16.2X current fiscal year EPS versus the industry average of 13.4X, analysts suggest the stock may have room to run in the near term based on rising earnings estimates and strong growth metrics.

RingCentral (RNG), a leading provider of cloud communications and SaaS solutions, is highlighted as a potential growth investment. The company holds a #3 (Hold) Zacks Rank with a VGM Score of A and Growth Style Score of A, forecasting 15.6% year-over-year earnings growth. One analyst recently revised earnings estimates upward, with the Zacks Consensus Estimate increasing to $5.04 per share.

Zacks Premium offers investment research tools including Style Scores (Value, Growth, Momentum, and VGM) designed to complement the Zacks Rank system. These scores help investors identify stocks with the highest likelihood of outperformance over 30 days. The article highlights RingCentral as a stock to watch with a #3 Hold rank and top-tier Momentum and VGM Style Scores of A and B respectively.