New York, February 23, 2026, 08:03 EST — Premarket
- RingCentral slipped 0.8% in premarket trade, easing back after Friday’s surge of nearly 35%.
- Piper Sandler held its Neutral rating in place, bumping up the price target to $37.
- Investors are eyeing cash returns, specifically dividends and buybacks, to see if they’ll stay intact through 2026.
RingCentral shares edged down 0.8% to $39.20 ahead of Monday’s open. The cloud communications group had just staged a sharp rally late last week, drawing renewed trader interest. (Public)
Shares finished Friday at $39.48, jumping 34.6% after the company announced a new dividend and gave upbeat guidance on cash flow. (markets.businessinsider.com)
Shares ticked up, pushing past a new batch of analyst price targets. Piper Sandler’s James Fish stayed Neutral on Monday but bumped his target to $37, up from $28, per Benzinga. (Benzinga)
RingCentral shares jumped after its Feb. 19 fourth-quarter report, where the company announced it would begin returning cash to shareholders and stuck to its mid-single-digit revenue growth outlook. For 2025, the company reported a 5% revenue increase to $2.515 billion and a 32% jump in free cash flow to $530 million. Looking ahead, RingCentral projected 2026 free cash flow between $580 million and $600 million. “AI is proving to be a strong tailwind,” CEO Vlad Shmunis said. CFO Vaibhav Agarwal described 2025 as a year of “disciplined execution across growth, profitability, and capital allocation.” (RingCentral)
RingCentral’s board signed off on a cash dividend program, according to a filing, and set a quarterly payout of $0.075 per share. That dividend lands March 16 for holders on record by March 9. The company expects to continue paying quarterly, though it flagged that future payments will depend on board approval and market conditions. (SEC)
Investors aren’t just eyeing the latest quarter; the real question is whether RingCentral can keep the cash coming and hang onto its customer base as competition heats up in business calling and contact-center software.
RingCentral’s bread and butter is subscription-driven software for voice, messaging, and contact centers—exactly the sort of steady-revenue business that draws a crowd when margins improve. Still, price wars are a constant threat, as Zoom and Microsoft Teams are entrenched on the same turf.
After a surge like Friday’s, that kind of sharp move brings its own positioning risk. Without fresh buyers stepping in, the stock could easily lose altitude. The market might also treat the dividend as a one-time boost, not a lasting change.
Next session, eyes turn to RingCentral and its ability to stick around the $39-$40 range after the rally. Traders are also waiting to see if any brokers shift price targets as they digest the 2026 margin and cash-flow markers.
