Shares of RingCentral surged this past week after the cloud communications software provider announced strong gains in free cash flow and boosted its dividend. Revenue rose 5.9% year over year to $657 million in the second quarter, while sales of its AI-powered tools doubled over the past year and now account for 13% of annual recurring revenue. Adjusted operating margin improved to 23.4% from 22.5% a year ago, helping drive a 15% increase in adjusted earnings per share to $1.22. Operating and free cash flow climbed 23.3% and 24.8% respectively, to $206 million and $180 million, yielding a free cash flow margin of 27.4%. The company raised its quarterly dividend by 67% to $0.125 per share and lifted its full-year 2026 guidance to adjusted earnings per share of $4.96 to $5.10 and free cash flow of $615 million to $625 million.
Ringcentral IncStrong free cash flow, dividend boost, raised guidance, and improved margins.