RingCentral shares surge following strong Q3 results and raised outlook

RingCentral Q3 earnings AI subscription revenue cloud communications financial guidance

RingCentral shares rose approximately 14% to around $91 in after-hours trading following the announcement of third-quarter 2026 financial results that exceeded expectations. The company reported total revenue of $676 million, a 5.9% increase year-over-year, while subscription revenue grew 6.0% to $653 million, surpassing the high end of previous guidance.

Key profitability metrics showed significant improvement, with the non-GAAP operating margin rising 190 basis points to 24.7%. Free cash flow also increased by 21% to $157 million. The company successfully reduced its gross debt to approximately $1 billion and raised its full-year outlook for revenue, non-GAAP margins, and free cash flow.

Artificial intelligence continues to be a primary growth driver. Annual recurring revenue from customers using native paid AI products has doubled year-over-year, approaching 15% of total recurring revenue. Specifically, the AI reception assistant, AIR, grew by 280% to serve more than 22,000 customers. The company is also expanding its AI capabilities through partnerships and plugins for models such as ChatGPT and Claude.