| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 657.01 | 2.0% | 5.9% |
| Total Income | 657.01 | 2.0% | 5.9% |
| Expenditure | 606.73 | 2.1% | 4.0% |
| PBT | 42.25 | 23.9% | 169.4% |
| Net Profit | 39.12 | 27.8% | 196.6% |
| OPM | 7.65% | 0.11pp | 1.70pp |
| NPM | 5.95% | 1.20pp | 3.83pp |
| EPS | 0.47 | 30.6% | 213.3% |
RingCentral Announces Q2 2026 Financial Results, Raises Full Year Outlook
24 Jul 2026 · 24 Jul, 2:22 am
Summary
RingCentral reported strong second quarter 2026 financial results, with total revenue up 5.9% year-over-year to $657 million and subscriptions revenue up 5.8% to $634 million. The company saw significant improvements in profitability, with GAAP operating margin reaching 7.7% and non-GAAP operating margin at 23.4%. Both GAAP and non-GAAP EPS exceeded guidance. Management raised the full-year outlook for revenue, margins, and free cash flow, reflecting confidence in continued growth and operational efficiency.
Key Highlights
- 1
Total revenue increased approximately 5.9% year-over-year to $657 million in the second quarter of 2026.
- 2
Subscriptions revenue grew approximately 5.8% year-over-year to $634 million.
- 3
GAAP operating margin improved to 7.7% from 6.0% in the prior year.
- 4
Non-GAAP operating margin increased approximately 90 basis points year-over-year to 23.4%.
- 5
GAAP EPS rose to $0.45 from $0.14 in the prior year.
- 6
Non-GAAP EPS increased to $1.22 from $1.06 last year.
- 7
Net cash provided by operating activities increased 23.3% year-over-year to $206 million.
- 8
Free cash flow grew 24.8% year-over-year to $180 million.
Management Comments
Vlad Shmunis
We delivered another strong quarter, exceeding the high end of guidance across all key metrics while accelerating our transformation into an Agentic Voice AI leader. Customers using at least one paid AI product now represent approximately 13% of ARR, having doubled year-over-year. This is a reflection of the growing value of our AI portfolio. Powered by our global voice network, rich customer interaction data, and ability to orchestrate AI and human agents, RingCentral is uniquely positioned to lead the future of customer engagement.
Vaibhav Agarwal
RingCentral is in a unique position, with a strong recurring core business, a widening moat, increasing momentum from AI-led products, and a financial profile that continues to strengthen. We are growing revenues, driving operating efficiencies, and generating high-quality free cash flow, which gives us the flexibility to invest in growth, strengthen the balance sheet, and return capital to shareholders positioning us for long-term growth to compound free cash flow and create meaningful long-term shareholder value.
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