RingCentral's stock soared 8.88% in pre-market trading on Friday, following the release of its fourth-quarter 2025 financial results that exceeded analyst expectations.
The company reported Q4 adjusted earnings per share of $1.18, beating the FactSet consensus estimate of $1.14. Revenue for the quarter reached $644 million, also surpassing expectations. Additionally, RingCentral provided Q1 2026 EPS guidance of $1.16 to $1.19, which exceeded analyst estimates of $1.09.
Investor sentiment was further boosted by the company's initiation of a quarterly cash dividend of $0.075 per share and strong growth in AI products, with annual recurring revenue from AI-led products approaching 10% of total ARR. The company also announced a partnership with OpenAI to integrate GPT-5.2 models into its communications platform.