RingCentral's stock soared 24.55% in pre-market trading on Friday, following the release of its fourth-quarter 2025 financial results that exceeded analyst expectations across key metrics.
The company reported Q4 adjusted earnings per share of $1.18, beating consensus estimates, while revenue reached $644 million, also surpassing expectations. RingCentral initiated a quarterly cash dividend of $0.075 per share and increased its share repurchase authorization, signaling confidence in its financial strength. Business highlights driving investor optimism include strong growth in AI products, with annual recurring revenue from AI-led products approaching 10% of total ARR, and a partnership with OpenAI to integrate GPT-5.2 models into its communications platform. Additionally, RingCentral provided positive guidance for Q1 2026, with EPS guidance of $1.16 to $1.19 exceeding analyst estimates.
The strong results prompted multiple analyst firms to raise their price targets on the stock, reflecting increased confidence in RingCentral's growth trajectory and financial performance.