Beaten-down software stocks RingCentral and Five9 rally as earnings quell some AI concerns

NodeGuardian · 2026-02-22T19:27:50+00:00

RingCentral and Five9 saw significant stock gains after reporting robust Q4 results, alleviating fears that AI could harm their business models. Both companies noted AI as a positive force, with notable increases in revenue and bookings.

NodeGuardian

2026-02-22 19:27:50

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RingCentral and Five9, leading customer service software providers, experienced significant stock rallies after reporting strong fourth-quarter results, easing investor concerns that AI advancements would negatively impact their business models. Both companies indicated that AI has become a “tailwind,” boosting bookings and revenue, with RingCentral’s AI-related annual recurring revenue doubling year-over-year and Five9’s enterprise AI bookings more than doubling. This positive news comes after a recent massive sell-off in the software sector, driven by fears that new AI tools from firms like Anthropic and OpenAI could displace traditional software-as-a-service models.

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