RingCentral Shares Plunge 13% After 15% Global Tariff Hike
RingCentral shares plunged 13% on February 23 after the White House’s immediate 15% global tariff hike triggered software sector sell-off and AI disruption concerns. This follows Q4 results of $644 million revenue, $1.18 adjusted EPS and FY26 EPS at $4.87, with AI attach rates doubling to 10% of its $2.67 billion ARR.
1. Share Plunge After Tariff Announcement
On February 23, RingCentral stock dropped 13% following the administration’s decision to immediately raise global tariffs to 15%, sparking a software sector sell-off and heightening investor concerns over trade policy and AI-driven industry disruption.
2. Fourth-Quarter Earnings Beat and Guidance
RingCentral reported Q4 revenue of $644 million and adjusted EPS of $1.18, both meeting or surpassing analyst expectations, and issued FY26 EPS guidance at $4.87, signaling management’s confidence in continued profitability.
3. AI Product Adoption and ARR Growth
The company’s AI product attach rate doubled year-over-year to 10% of its ARR, underpinning a $2.67 billion ARR base and supporting its first-ever dividend initiative to enhance shareholder returns.