• RingCentral, Inc. (NYSE: RNG) was recently added to the S&P SmallCap 600, the S&P 600 Information Technology sector index, and the broader S&P Composite 1500, following its replacement of Hillenbrand Inc. after that company’s pending acquisition by Lone Star Funds.
• This index inclusion broadens RingCentral’s exposure to institutional investors and index-tracking funds, potentially increasing trading liquidity and embedding the stock more deeply into benchmarked portfolios.
• With RingCentral now part of the S&P SmallCap 600, we’ll examine how this index inclusion shapes the company’s investment narrative and investor appeal.

Find 51 companies with promising cash flow potential yet trading below their fair value.

RingCentral Investment Narrative Recap

To own RingCentral, you need to believe its cloud communications and AI products can offset competition from bundled suites and partnership dependence. The S&P SmallCap 600 and Composite 1500 inclusions increase visibility and liquidity, but do not materially change the near term focus on Q4 2025 earnings as the key catalyst or the competitive and partnership pressure that remains the biggest risk.

The most relevant recent announcement here is the upcoming Q4 2025 earnings release on 19 February 2026, coming just after the index additions. Any surprise in subscription growth, margins, or AI product traction could interact with increased index driven trading, amplifying the market reaction and either reinforcing or challenging the current consensus view on RingCentral’s progress.

Yet behind the added index visibility, there is a less obvious risk investors should be aware of around the company’s heavy reliance on...

RingCentral's narrative projects $2.8 billion revenue and $219.0 million earnings by 2028. This requires 5.0% yearly revenue growth and about a $231 million earnings increase from -$12.2 million today.

Uncover how RingCentral's forecasts yield a $33.24 fair value, a 18% upside to its current price.

Exploring Other Perspectives

The most optimistic analysts already saw AI partnerships supporting US$2.9 billion of revenue and US$435.0 million of earnings by 2028, yet this new index inclusion could either strengthen that AI led thesis or highlight how exposed those expectations are if partnership driven growth...

Explore 4 other fair value estimates on RingCentral - why the stock might be worth over 3x more than the current price!

Build Your Own RingCentral Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your RingCentral research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free RingCentral research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RingCentral's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.