RingCentral's stock surged 5.14% in after-hours trading on Thursday, following the release of its fourth-quarter and full-year 2025 financial results that exceeded analyst expectations across key metrics.
The company reported Q4 adjusted earnings per share of $1.18, beating the FactSet consensus estimate of $1.14. Revenue for the quarter reached $644.033 million, also surpassing the $643.509 million estimate. RingCentral initiated a quarterly cash dividend of $0.075 per share and increased its share repurchase authorization to $500 million, signaling confidence in its financial strength and commitment to returning capital to shareholders.
Business highlights driving investor optimism include 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, enhancing its AI Receptionist and Virtual Assistant capabilities. Additionally, RingCentral provided positive guidance for Q1 2026 with revenue expected between $640-645 million and full-year revenue growth projected at 4-5%.