RingCentral (RNG) · Q1 2026 results and valuation

At 8.1% growth a year (3-year revenue growth), the model's fair value is $121.95 a share — the stock trades 38% below it. Today's price assumes 2.2% growth a year.

1. Guidance

   Stock-based pay is expected to fall to about 9% of revenue in 2026 from roughly 11% in 2025.

   Source quote

   “For the full year, we now expect SBC to be approximately 9% of revenue in 2026, down from approximately 11% in 2025.”

2. Guidance

   The company paid its inaugural dividend this quarter and expects to continue doing so, signaling a new phase of capital return.

   Source quote

   “And we paid our inaugural dividend this quarter, which we expect to continue to do.”

3. Fading

   An inaugural dividend was paid this quarter and is expected to continue going forward.

   Source quote

   “Total revenue for the year grew nearly 5% and subscription revenue grew just over 5.5%. We had a strong Q4 capping a solid 2025, in which we met or exceeded all our key operating metrics. Of particular note, we generated record free cash flow of more than $0.5 billion, up 32% versus 2024.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“With our robust platform, massive amounts of rich data, omnichannel communication capabilities and global GTM and innovation at scale, we are well positioned to leverage AI as a key driver...”

“It is being driven by the underlying leverage in a high recurring revenue model at scale, combined with disciplined hiring, expanded offshoring, vendor consolidation, greater internal use of AI and...”

“On the strength of that innovation, we've built a $2.7 billion ARR business that is growing, generating a healthy amount of cash and is returning value to shareholders in a...”