Why RingCentral Stock Rocketed Higher Today |

Shares of RingCentral (RNG 0.20%) surged on Friday after the cloud communications specialist delivered a solid fourth-quarter financial report.

By the close of trading, RingCentral’s stock price was up more than 34%.

AI-driven gains

RingCentral’s revenue rose 5% year over year to $644 million in the fourth quarter.

The business messaging platform’s investments in artificial intelligence (AI) are bearing fruit. The number of customers using its AI Receptionist offering jumped 44% sequentially to over 8,000.

In all, RingCentral’s AI-powered products now generate more than $100 million in annual recurring revenue (ARR).

“AI is proving to be a strong tailwind, with ARR from customers who utilize at least one of our monetized AI products more than doubling year over year and now approaching 10% of our overall ARR,” CEO Vlad Shmunis said in a press release.

Better still, RingCentral is becoming more profitable as it scales its business. Its operating income checked in at $42 million, up from $16 million in the prior-year quarter, as its operating margin improved to 6.6% from 2.5%.

All told, RingCentral’s adjusted earnings per share increased 20% to $1.18. That topped Wall Street’s estimates, which had called for per-share profits of $1.13.

Paying dividends

For 2026, RingCentral expects revenue to grow by 4% to 5%, with its free cash flow rising by 11% to roughly $590 million.

This strong cash production is enabling RingCentral to initiate a quarterly cash dividend of $0.075 per share, payable on March 16 to shareholders of record as of March 9.

“We’re confident in the future of our business, and are excited to initiate our first-ever dividend,” Shmunis said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.