Cloud communications provider RingCentral (NYSE: RNG) will be reporting results this Thursday after market close. Here’s what you need to know.
RingCentral met analysts’ revenue expectations last quarter, reporting revenues of $638.7 million, up 4.9% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and billings in line with analysts’ estimates.
Is RingCentral a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting RingCentral’s revenue to grow 4.6% year on year to $642.9 million, slowing from the 7.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RingCentral has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.6% on average.
Looking at RingCentral’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. 8x8 delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 2.9%, and Microsoft reported revenues up 16.7%, topping estimates by 1.2%. 8x8 traded up 47% following the results while Microsoft was down 10%.
Read our full analysis of 8x8’s results here and Microsoft’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 13.6% on average over the last month. RingCentral is up 12.4% during the same time and is heading into earnings with an average analyst price target of $33.07 (compared to the current share price of $29.00).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
