RingCentral shares surge on strong earnings and AI-driven growth

RingCentral reported second‑quarter revenue of $657 million, up 5.9% year over year, and adjusted earnings per share of $1.22, beating analysts’ expectations. The company highlighted rapid expansion of its artificial‑intelligence‑powered customer‑engagement tools, which now represent 13% of annual recurring revenue and have doubled in sales over the past year. Free cash flow rose 24.8% to $180 million, delivering a free‑cash‑flow margin of 27.4%, and the quarterly dividend was increased 67% to $0.125 per share. On the strength of the results, RingCentral lifted its full‑year 2026 EPS guidance to $4.96‑$5.10 and raised revenue guidance to $664‑$670 million. The market reacted with the stock jumping roughly 25% during the week.

Institutional investors also adjusted their positions. First Trust Advisors LP trimmed its stake by 2.5% to hold about 1.88% of the company’s shares, while other funds such as Meeder Asset Management and Rockefeller Capital Management increased their holdings. The changes reflect continued investor interest following the company’s strong cash generation and AI‑focused strategy.