| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 59 | 11.4x | 17.3x | Around median | |
Growth | 81 | 5.5% | 7.1% | Top tier | |
Quality | 98 | 80.6% | 4.5% | Top tier | |
Safety | 57 | 1.7x | 2.6x | Around median | |
Capital Return | 91 | 0.31% | 0.06% | Top tier | |
Momentum | 100 | 197.7% | -1.6% | Top tier | |
Sentiment | 44 | 10 | 3 | Around median |
The floor: what the company is worth if growth stopped today
83% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RingCentral, Inc. sells cloud communications and customer engagement solutions to businesses, from RingEX for employee communications to RingCX for contact centers, alongside the AI products AIR for answering calls and ACE for conversation analytics. Its revenue model relies on subscriptions and adding paid products to its customer base; subscription revenue reached approximately $634 million in quarter 2 of fiscal year 2026, the period ended 2026-06-30, out of total revenue of $657.0 million. The platform serves approximately 600,000 businesses in 45 countries through a network carrying approximately 40 billion voice minutes annually and more than 3 billion text messages, enabling existing communications services to connect with AI agents.
RingCentral recorded year-over-year revenue growth of 5.9% in quarter 2 of fiscal year 2026, the period ended 2026-06-30, compared with revenue of $620.4 million in quarter 2 of fiscal year 2025. Net income reached $39.1 million, diluted earnings per share were $0.45, and operating cash flow was $206.4 million. Gross margin rose to 71.9% from 71.2% in the corresponding quarter, and operating margin expanded to 7.7% from 6.0%, making the improvement in profitability more evident than the acceleration in revenue growth.
Revenue reached $2.6 billion, net income was $110.3 million, and free cash flow was $638.1 million over the last 12 months through 2026-06-30. On the 2026-07-23 call, management explained that customers using at least one paid AI-native product account for approximately 13% of annual recurring revenue, and that net retention for this group exceeds 100%. This percentage refers to these customers' entire recurring revenue, rather than the share of AI revenue alone; it highlights the role of AIR and ACE in expanding customer spending on the platform.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-02
Quarterly revenue within the guidance range of $664 million to $670 million
GAAP operating margin within the guidance range of 7.2% to 8.6%
The industry-multiple valuation is $91, within a range of $61 to $153, pricing next year's earnings at a median multiple of 17.3 across 151 comparable companies. The median price target of four analysts is $55, within a range of $40 to $85; this is a low-confidence indicative estimate reflecting growth expectations, while the average analyst consensus target is $61 with an overall Buy recommendation. The no-growth valuation is $8.02 at a discount rate of 10.4%, measuring what remains if current after-tax operating profit stays constant forever. The industry-multiple range overlaps with the analyst target range, but the central multiple-based valuation is higher than the median target, and both are substantially higher than the no-growth valuation, illustrating the impact of future earnings expectations compared with holding current profit constant; analyst targets also tend to be optimistic by nature.
Figures in the text are as of 2026-10-09; the live price is shown at the top of the page.
RingCentral relies on subscriptions for cloud communications and customer engagement, alongside sales of paid AI add-ons. Subscription revenue reached approximately $634 million out of a total of $657.0 million in quarter 2 of fiscal year 2026, the period ended 2026-06-30. RingEX serves business communications, while RingCX provides contact center capabilities, and AIR adds call answering and ACE adds conversation analytics. On 2026-07-23, the company announced an expansion of its NiCE partnership to sell RingEX with CXone, broadening its options for enterprises with more complex needs.
The 13% figure in quarter 2 of fiscal year 2026, the period ended 2026-06-30, represents annual recurring revenue from customers using at least one paid AI-native product. Management explained on 2026-07-23 that this metric includes these customers' revenue from the platform, rather than AI revenue alone. AIR exceeded 16,000 paying customers with year-over-year growth of 400%, and ACE exceeded 6,300 customers with growth of more than 70%. The significance of this group lies in net retention exceeding 100% and higher average revenue per user, supporting expansion within existing customers.
Automated analysis for informational purposes only — not investment advice.
When: Fiscal year 2026
Annual free cash flow within the guidance range of $615 million to $625 million
Net income reached $110.3 million and operating cash flow reached $670.8 million over the last 12 months through 2026-06-30, meaning operating cash flow was equivalent to 608% of net income. Free cash flow reached $638.1 million over the same period, providing funding for several capital allocation priorities. However, management explained on 2026-07-23 that cash flow for quarter 2 of fiscal year 2026, the period ended 2026-06-30, benefited from nonrecurring advance payments from customers and partners. Continued cash flow strength therefore depends on improving profitability and managing working capital, alongside fiscal year 2026 free cash flow guidance of between $615 million and $625 million.
Debt reached $1.1 billion against cash and investments of $316.3 million in quarter 2 of fiscal year 2026, the period ended 2026-06-30, and management confirmed on 2026-07-23 that it aims to reduce total debt to $1 billion by the end of fiscal year 2026. Share repurchases reached $427.6 million over the last 12 months through 2026-06-30. The diluted share count declined to 86.6 million shares in quarter 2 of fiscal year 2026 from 92.1 million shares in quarter 2 of fiscal year 2025, despite stock-based compensation of $240.1 million over the last 12 months through 2026-06-30. On 2026-07-23, the board announced an increase in the quarterly cash dividend to $0.125 per share, adding a capital commitment alongside debt reduction and repurchases.
The industry-multiple valuation is $91 because it relies on next year's earnings and a median multiple of 17.3 across 151 companies, while the median price target of four analysts is $55 within a range of $40 to $85. Analyst targets are low-confidence indicative estimates that reflect growth expectations and tend to be optimistic, while the multiple method prices the company against its peer benchmark. The no-growth valuation is $8.02 because it holds current after-tax operating profit constant forever at a discount rate of 10.4%, excluding the contribution of future growth. Differences among analyst estimates are also evident in Oppenheimer raising its target to $85 on 2026-09-01, compared with Piper Sandler's target of $43 on 2026-07-24.