NEW YORK, Feb 21, 2026, 10:11 (EST) — Market closed.
- RingCentral shares closed Friday at $39.50, up 34.4%, after a late-week earnings update.
- The company launched its first quarterly dividend and lifted its buyback authorization to $500 million.
- Investors now watch whether the post-earnings jump holds when trading resumes on Monday.
RingCentral Inc shares finished Friday at $39.50, up 34.4%, leaving the stock on watch for a volatile open when U.S. markets reopen on Monday. The shares swung from $34.36 to $40.64 in the session as volumes surged. (Investing)
The move matters now because RingCentral is trying to prove it can keep throwing off cash even as revenue growth stays in the mid-single digits. The company said 2025 revenue rose 5% to $2.515 billion and free cash flow — cash left after capital spending — climbed 32% to $530 million. (RingCentral)
That cash is being redirected. RingCentral’s board declared a quarterly dividend of $0.075 per share, payable on March 16 to shareholders of record as of March 9, and said it intends to pay a dividend quarterly, subject to conditions. (SEC)
On the same update, RingCentral lifted its share repurchase authorization to $500 million and said it bought back about 5 million shares for $135 million in the fourth quarter. It also forecast 2026 free cash flow of about $580 million to $600 million and non-GAAP earnings per share of $4.76 to $4.97. (SEC)
Chief executive Vlad Shmunis leaned hard on the company’s pitch that AI features are turning into billable demand. “AI is proving to be a strong tailwind,” Shmunis said, pointing to annual recurring revenue (ARR) from customers using at least one paid AI product as it grows. (Nasdaq)
There was another AI headline in the mix. RingCentral said it is integrating OpenAI to advance voice-AI features and described a personal assistant product, AVA, as being available to a limited number of customers. OpenAI Chief Commercial Officer Giancarlo “GC” Lionetti said the partnership aims to bring intelligence “directly into live voice conversations” for enterprises. (RingCentral)
Wall Street started to roll out reactions after the earnings print. Rosenblatt analyst Catharine Trebnick raised her price target to $37.50 from $32 and kept a Buy rating, calling management’s 2026 guide a sign of a “durable profitable growth profile.” (TipRanks)
Mizuho also raised its price target, to $32 from $27, while keeping a Neutral rating, noting margin expansion and the new capital-return plan. The firm said results were broadly in line with expectations while earnings per share came in above consensus. (Investing)
Peers were quieter. Zoom Communications slipped about 0.7% in the latest session, while smaller rival 8×8 rose about 3.4%.
RingCentral sells cloud-based business communications software — phone, messaging and contact-center tools — and competes in a crowded market that includes big platforms and smaller specialists. The dividend and stepped-up buyback put the company in a different conversation with investors: less about chasing growth, more about what margins and cash look like through a cycle.
But the jump leaves little room for stumbles. RingCentral’s 2026 outlook still points to only modest revenue growth, and the company is betting that AI products can keep lifting sales without igniting new spending. Competition, delayed enterprise deals, or a slower payoff from AI features could all hit expectations quickly.
Next week’s immediate question is simple: does RNG hold the gains when trading resumes on Monday, Feb. 23, or does momentum fade once the earnings headlines cool. Beyond that, the market has a hard date to circle — March 9 for the dividend record date, ahead of the first cash payout on March 16.
