RingCentral (RNG) Beats Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - RingCentral reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.91 per share a year ago, representing an earnings surprise of +3.92% [1] - The company posted revenues of $620.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.43%, and an increase from $592.91 million year-over-year [2] - Over the last four quarters, RingCentral has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - RingCentral shares have declined approximately 32.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.08 on revenues of $637.78 million, and for the current fiscal year, it is $4.21 on revenues of $2.52 billion [7] Group 3: Industry Context - The Internet - Software and Services industry, to which RingCentral belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact RingCentral's stock performance [5]