RingCentral and Five9 Surge on Strong Q4 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy RNG?
Source: Newsfilter
- Earnings Beat: Both RingCentral and Five9 reported fourth-quarter results that exceeded Wall Street expectations, with RingCentral's stock surging 34% and Five9 rising about 14%, reflecting strong performance in the customer service software sector.
- AI-Driven Growth: Both companies indicated that accelerating AI adoption has boosted demand, with RingCentral reporting that annual recurring revenue from customers using AI tools doubled year-over-year to nearly 10%.
- Market Panic Eased: Despite a recent massive sell-off in the software sector due to fears surrounding AI tools, the strong earnings from these two firms alleviated investor concerns, indicating that AI is not undermining their business models.
- Five9 AI Booking Surge: Five9 reported that its enterprise AI bookings more than doubled year-over-year, achieving $100 million in annual recurring revenue, showcasing its competitive edge and market potential in customer service solutions.
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Analyst Views on RNG
Wall Street analysts forecast RNG stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 29.390
Low
27.00
Averages
31.14
High
36.00
Current: 29.390
Low
27.00
Averages
31.14
High
36.00
About RNG
RingCentral, Inc. is a provider of artificial intelligence (AI)-powered cloud business communications, contact center, video and hybrid event solutions. It has an AI-powered multi-product portfolio including unified communications as a service (UCaaS), contact center as a service (CCaaS), video and events, and RingSense AI solutions. Its multi-product portfolio includes RingEX, RingCentral Contact Center, RingCX, RingCentral Artificial Intelligence Solutions, and RingCentral Events. RingCentral Contact Center is a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions integrated with RingEX. RingCX is its next-generation CCaaS solution, delivering an AI-powered customer engagement solution with customer relationship management (CRM) integrations and a broad ecosystem of integrated partner solutions. RingCentral Events solutions enable businesses to host virtual, hybrid, and in-person events with AI-powered engagement tools.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

- Share Price Increase: RINGCENTRAL's shares rose by 28.5% following the release of their Q4 results, which exceeded expectations.
- Share Repurchase Authorization: The company has authorized a share repurchase program worth $500 million, indicating confidence in its financial health and future growth.
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- Earnings Beat: Both RingCentral and Five9 reported earnings that exceeded Wall Street estimates, with RingCentral's stock surging 34% and Five9's rising 14%, reflecting strong market confidence in their future growth.
- Surge in AI Demand: Both companies indicated that the accelerating adoption of artificial intelligence has boosted demand for customer service solutions, with RingCentral's annual recurring revenue from AI tool users doubling year-over-year to nearly 10%.
- Five9 AI Business Growth: Five9's enterprise AI bookings more than doubled year-over-year, leading to an annual recurring revenue of $100 million, showcasing its strong performance and market demand in the AI sector.
- Market Rebound Signal: Following a significant sell-off in the software sector due to AI threats, the robust performance of these two companies provides a rebound signal for investors, potentially indicating an improvement in market sentiment.
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- Earnings Beat: Both RingCentral and Five9 reported fourth-quarter results that exceeded Wall Street expectations, with RingCentral's stock surging 34% and Five9 rising about 14%, reflecting strong performance in the customer service software sector.
- AI-Driven Growth: Both companies indicated that accelerating AI adoption has boosted demand, with RingCentral reporting that annual recurring revenue from customers using AI tools doubled year-over-year to nearly 10%.
- Market Panic Eased: Despite a recent massive sell-off in the software sector due to fears surrounding AI tools, the strong earnings from these two firms alleviated investor concerns, indicating that AI is not undermining their business models.
- Five9 AI Booking Surge: Five9 reported that its enterprise AI bookings more than doubled year-over-year, achieving $100 million in annual recurring revenue, showcasing its competitive edge and market potential in customer service solutions.
See More
- Market Recovery: The S&P 500 index rose by 0.58%, reaching a one-week high, primarily driven by the Supreme Court's ruling against Trump's global tariffs, which is expected to boost economic growth and improve market sentiment.
- Weak Economic Data: The US Q4 GDP grew at an annualized rate of only 1.4%, significantly below the expected 2.8%, indicating fragility in the economic recovery and potentially leading the Fed to adopt a more cautious approach in future rate decisions.
- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
- Positive Earnings Outlook: Over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, providing support for the market and demonstrating corporate resilience amid economic uncertainties.
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- Tariff Ruling Impact: The Supreme Court's decision to strike down Trump's global tariffs led to a 0.4% decline in the Russell 2000, indicating negative sentiment towards small-cap stocks while boosting internationally exposed equities.
- Legal Basis: The Court ruled that the International Emergency Economic Powers Act does not grant the president the authority to impose tariffs, emphasizing that only Congress holds this power during peacetime, leaving unresolved issues regarding over $130 billion in tariffs already collected.
- Market Reaction: The ruling intensifies competitive pressures on small-cap firms that previously benefited from elevated import duties, reflecting investor concerns about domestic economic stability amid increasing foreign competition.
- Macroeconomic Context: The U.S. GDP growth rate for Q4 2025 was just 1.4%, significantly below the expected 3%, while the Personal Consumption Expenditures index rose by 0.4%, indicating rising inflationary pressures that further affect market sentiment.
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- Supreme Court Ruling Impact: The U.S. Supreme Court's 6-3 decision invalidates significant portions of Trump's tariff agenda, ruling that the executive branch lacks the authority to impose such levies unilaterally, which may reshape future trade policies and boost market confidence in economic recovery.
- Weak Economic Data: U.S. Q4 GDP growth was only 1.4%, significantly below the expected 2.8%, indicating signs of economic slowdown, while the core PCE price index rose to 2.7%, exceeding expectations of 2.6%, which may lead the Fed to maintain interest rates in upcoming meetings.
- Corporate Earnings Performance: Over 75% of S&P 500 companies have reported earnings, with 74% exceeding market expectations, indicating resilience in corporate profitability, and Q4 earnings growth is projected to reach 8.4%, providing support for the stock market.
- Market Volatility and Investor Sentiment: Despite the overall rise in U.S. stocks, investor sentiment remains cautious due to geopolitical risks and mixed economic signals, with the market pricing in only a 6% chance of a rate cut at the next Fed meeting.
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