# RingCentral Raises 2026 Outlook as Free Cash Flow Climbs 21% By John Kim Canonical URL: https://www.tokenpost.com/news/business/39409 Published: 2026-10-23T22:55:16.000Z Updated: 2026-10-23T22:55:16.000Z Section: Business > Third-quarter revenue rose 5.9% to $676 million as the company lifted its non-GAAP operating-margin and diluted earnings-per-share targets. RingCentral raised its fiscal 2026 revenue, non-GAAP operating-margin, non-GAAP diluted earnings-per-share and free-cash-flow outlook after third-quarter revenue and cash generation grew year over year. The company now expects total revenue of $2.650 billion to $2.657 billion, compared with its previous range of $2.635 billion to $2.646 billion. Its subscription-revenue forecast increased to $2.563 billion to $2.569 billion from $2.550 billion to $2.561 billion. RingCentral announced results for the quarter ended Sept. 30 on Oct. 22. Revenue reached $676.043 million, up 5.9% from $638.655 million a year earlier. Subscription revenue rose to $652.944 million from $615.821 million. Free cash flow grew 21% to $157 million, equal to 23.2% of revenue, compared with 20.3% a year earlier. Cash from operating activities increased 18.8% to $180 million. The updated fiscal 2026 outlook puts non-GAAP operating margin at 24.0% to 24.2%, up from 23.6% to 24.0%. Non-GAAP diluted earnings per share are forecast at $5.07 to $5.12, compared with the prior range of $4.96 to $5.10. The free-cash-flow forecast rose to $620 million to $630 million from $615 million to $625 million. The GAAP operating-margin range changed in both directions: its lower end moved up to 9.2% from 9.0%, while its upper end moved down to 9.6% from 9.7%. For the quarter, non-GAAP diluted earnings per share were $1.33, up from $1.13 a year earlier. GAAP diluted EPS totaled $6.50 with the valuation-allowance release included. Without the release’s effect, diluted EPS was 28 cents, a 47.4% increase from a year earlier. “Our third-quarter results demonstrate strong execution against our financial commitments, with durable growth, expanding operating and free cash flow margins, and improving GAAP profitability,” RingCentral Chief Financial Officer Vaibhav Agarwal said. TokenPost previously covered [RingCentral’s earnings-beat record]() ahead of the quarterly results. ## Links in this article - [RingCentral’s earnings-beat record](https://www.tokenpost.com/news/business/32950)