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RingCentral And NICE Expand Their Alliance — Is Enterprise Cross-Selling The Catalyst?

RingCentral reported strong results for the second quarter of 2026, surpassing the high end of guidance across major financial metrics including total revenue, subscription revenue, and operating margins. Total revenue grew 5.9% year-over-year to approximately $657 million, with subscription revenue rising 5.8% to about $634 million. The company’s recurring revenue model demonstrated resilience, supported by steady new customer additions and improving net retention above 99%. Free cash flow generation remained robust, reaching $180 million for the quarter, up 25% from the prior year, leading to an upward revision of full-year free cash flow guidance to approximately $620 million. Profitability metrics improved, with non-GAAP operating margin increasing by nearly 90 basis points to 23.4%, and GAAP operating margin advancing 170 basis points to 7.7%. Stock-based compensation was reduced to about 9% of revenue, with further declines expected, aligned with the company’s medium-term target to cut it to 3-4%.