RingCentral (RNG) Is Up 5.1% After Q3 Beat And Upbeat Guidance On Subscription Momentum

• RingCentral recently reported third-quarter 2025 results that exceeded consensus expectations, with non-GAAP earnings and revenues lifted by strong subscription demand and a broad communications product suite.
• The company also issued guidance calling for continued revenue and subscription expansion alongside defined margin and earnings ranges, highlighting management’s confidence even as analyst estimate trends have softened.
• Next, we’ll examine how this earnings beat and upbeat guidance could influence RingCentral’s investment narrative around AI-driven communications growth.

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RingCentral Investment Narrative Recap

To own RingCentral, you need to believe that AI-enhanced cloud communications and contact center demand can outpace bundling pressure from suites like Teams and Zoom. The Q3 2025 beat and reaffirmed growth guidance support that thesis in the near term, while slowing estimate trends and modest revenue growth expectations keep competitive and execution risk firmly in view; the insider selling pattern does not materially change that risk-reward balance right now.

The most relevant recent development here is management’s reaffirmation of full year 2025 guidance alongside Q3 results, including mid single digit subscription and total revenue growth targets and defined margin ranges. That consistency, paired with ongoing share repurchases under the expanded US$500.0 million authorization, reinforces the current catalyst around monetizing AI products without sacrificing profitability, even as competition in UCaaS and CCaaS intensifies.

But investors should also be aware that if bundled suites gain more traction, RingCentral could face...

Read the full narrative on RingCentral (it's free!)

RingCentral's narrative projects $2.8 billion revenue and $219.0 million earnings by 2028.

Uncover how RingCentral's forecasts yield a $33.24 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community see RingCentral’s fair value between US$33.24 and US$97.06, highlighting very different expectations. Against that backdrop, the Q3 earnings beat and confirmed 2025 growth guidance sharpen the focus on whether AI driven products can offset competitive and bundling pressures over time.

Explore 4 other fair value estimates on RingCentral - why the stock might be worth over 3x more than the current price!

Build Your Own RingCentral Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your RingCentral research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free RingCentral research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RingCentral's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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