Docusign Inc. (NASDAQ:DOCU – Get Free Report) has earned an average recommendation of “Hold” from the nineteen brokerages that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and three have assigned a buy rating to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $67.62.
A number of equities analysts have issued reports on DOCU shares. BTIG Research lifted their price objective on shares of Docusign from $60.00 to $75.00 and gave the stock a “buy” rating in a report on Wednesday, September 2nd. Weiss Ratings upgraded shares of Docusign from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Citigroup increased their target price on shares of Docusign from $54.00 to $72.00 and gave the company a “neutral” rating in a report on Friday, September 4th. Royal Bank Of Canada raised their price target on shares of Docusign from $55.00 to $70.00 and gave the company a “sector perform” rating in a research report on Friday, September 4th. Finally, Robert W. Baird boosted their price target on shares of Docusign from $55.00 to $72.00 and gave the stock a “neutral” rating in a report on Friday, September 4th.
View Our Latest Stock Report on Docusign
Insiders Place Their Bets In other Docusign news, Director Mary Wilderotter sold 1,000 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $68.80, for a total value of $68,800.00. Following the completion of the sale, the director owned 2,199 shares in the company, valued at approximately $151,291.20. This trade represents a 31.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 14,676 shares of Docusign stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $69.41, for a total transaction of $1,018,661.16. Following the transaction, the insider directly owned 75,928 shares in the company, valued at approximately $5,270,162.48. This represents a 16.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 165,868 shares of company stock worth $11,121,890 in the last ninety days. 0.59% of the stock is owned by corporate insiders. Hedge Funds Weigh In On Docusign Several institutional investors have recently modified their holdings of the business. Axxcess Wealth Management LLC bought a new stake in Docusign during the third quarter worth $283,000. Nisa Investment Advisors LLC boosted its position in Docusign by 28.2% in the third quarter. Nisa Investment Advisors LLC now owns 3,610 shares of the company’s stock worth $242,000 after purchasing an additional 795 shares during the last quarter. Tred Avon Family Wealth LLC boosted its position in Docusign by 22.2% in the third quarter. Tred Avon Family Wealth LLC now owns 8,328 shares of the company’s stock worth $559,000 after purchasing an additional 1,514 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd boosted its position in Docusign by 12.3% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 11,695 shares of the company’s stock worth $785,000 after purchasing an additional 1,284 shares during the last quarter. Finally, Investment Research Partners LLC bought a new position in Docusign in the 3rd quarter valued at $219,000. 77.64% of the stock is owned by institutional investors.
Docusign Stock Up 1.5% NASDAQ DOCU opened at $81.48 on Thursday. Docusign has a 52 week low of $40.16 and a 52 week high of $81.62. The business has a 50 day moving average price of $67.89 and a 200-day moving average price of $55.43. The company has a market cap of $15.23 billion, a price-to-earnings ratio of 49.68, a P/E/G ratio of 2.97 and a beta of 0.86.
Docusign (NASDAQ:DOCU – Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $1.09 by $0.07. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The company had revenue of $875.75 million for the quarter, compared to analyst estimates of $867.22 million. During the same quarter in the prior year, the business posted $0.30 EPS. The firm’s revenue was up 9.4% compared to the same quarter last year. On average, equities research analysts anticipate that Docusign will post 2.14 earnings per share for the current year.
About Docusign (Get Free Report)
DocuSign, Inc is a software company that provides digital agreement and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping customers replace paper-based contracting processes with digital workflows.
The company’s offerings include eSignature, contract lifecycle management, identity verification, notarization and agreement analytics tools. These products are designed to support agreement creation, negotiation, execution and post-signature management across functions such as sales, human resources, procurement, legal and finance.
Founded in 2003, DocuSign serves businesses, government organizations and individual users in markets around the world.
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DocuSign (DOCU - Free Report) ended the recent trading session at $81.42, demonstrating a +1.41% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Shares of the provider of electronic signature technology have appreciated by 20.25% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.67%, and the S&P 500's gain of 0.97%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $1.17, showcasing a 15.84% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $888.69 million, up 8.59% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $3.5 billion. These totals would mark changes of +20.05% and +8.79%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.88% higher. As of now, DocuSign holds a Zacks Rank of #2 (Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 17.42. This valuation marks a discount compared to its industry average Forward P/E of 20.7.
Also, we should mention that DOCU has a PEG ratio of 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
CrowdStrike (CRWD -0.32%) and Docusign (DOCU +4.72%) represent two distinct paths within the software market, as one pursues aggressive expansion in cybersecurity while the other refocuses on broader agreement lifecycles.
CrowdStrike is a leader in endpoint security, whereas Docusign dominates the electronic signature market. Investors often compare them to determine whether the premium price of a security leader outweighs the value proposition of a workflow giant.
The case for CrowdStrikeCrowdStrike provides AI-native cybersecurity through its Falcon platform, which secures endpoints, identities, and data for enterprises and governments. The company relies on Amazon (AMZN +0.07%) as a key third-party data center provider to deliver its cloud-based services. In its latest annual report, the company noted that it has focused on rebuilding customer trust following a major content configuration incident in mid-2024 while expanding into tech stocks related to artificial intelligence initiatives.
In FY 2026, revenue reached nearly $4.8 billion, representing growth of approximately 21.7% over the previous year. Despite this top-line expansion, the company reported a net loss of roughly $162.5 million for the period. This resulted in a net margin of -3.4%, reflecting a shift from the nominal net loss in the prior fiscal year as the company continues to invest in platform scale.
As of its January 2026 balance sheet, the debt-to-equity ratio is approximately 0.2x. This ratio measures total debt relative to the value provided by shareholders. The current ratio, which measures a company's ability to cover its short-term bills with its short-term assets, is close to 1.8x. Free cash flow reached nearly $1.3 billion, though stock-based compensation accounted for roughly 68% of operating cash flow, inflating reported cash generation because SBC is a non-cash expense added back in the cash flow statement.
The case for DocusignDocusign has shifted its focus toward the Intelligent Agreement Management (IAM) platform, which helps organizations manage the entire lifecycle of a contract. The company serves over 1.8 million customers and maintains strategic partnerships with leaders like Salesforce (CRM -0.01%), Microsoft (MSFT -0.31%), SAP (SAP +1.30%), ServiceNow (NOW +2.88%), and Workday (WDAY +4.50%). It also integrates with platforms owned by Alphabet to ensure its tools are accessible within standard office workflows.
In FY 2026, revenue reached approximately $3.2 billion, an increase of about 8.2% from the prior year. The company reported net income of roughly $309.1 million, resulting in a net margin of approximately 9.6%. Although this net margin is lower than in the previous fiscal year, the company remains consistently profitable as it transitions users to its new IAM products.
As of its January 2026 balance sheet, the debt-to-equity ratio reached nearly 0.1x. The current ratio is approximately 0.7x, indicating that the company has fewer short-term assets than short-term liabilities. Free cash flow was close to $1.1 billion for the fiscal year. Note that stock-based compensation represented roughly 53.4% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonCrowdStrike faces significant risks regarding operational and reputational damage following its July 2024 system incident, which led to increased litigation and potential customer churn. The company also operates in an intense competitive landscape where legacy vendors and new AI entrants exert pricing pressure. Furthermore, its reliance on third-party cloud infrastructure and the evolving global data privacy landscape, such as the EU AI Act, could impose higher compliance costs and operational constraints.
Docusign faces high dependency on its eSignature product for the majority of its subscription revenue, which makes it vulnerable if market adoption slows. Rapid advancements in AI technology could allow competitors or customers to build internal alternatives, potentially disrupting its business model. The company also faces competition from Adobe and must navigate complex international regulations, including GDPR, that impact its global data management and security operations.
Valuation comparisonDocusign currently trades at a significant discount to CrowdStrike on both earnings and sales metrics, reflecting its slower growth profile compared to the cybersecurity leader.
MetricCrowdStrikeDocuSignForward P/E192.6x16.7xP/S ratio45.8x4.3xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
The forward P/E compares the stock price to future earnings estimates for the next year. The P/S ratio measures market value against sales over the past 12 months.
Both CrowdStrike and Docusign are established software companies with strong cash flow. But investors who want to choose between the two should focus on their investing goals. What's more important, a stock offering with larger growth potential or one that offers a more conservative investment?
Cybersecurity has become an essential service for businesses of all sizes, and CrowdStrike's Falcon platform continues to attract customers and generate revenue: $4.81 billion in FY 2026, up nearly 22% year over year. Free cash flow has been strong, but it reported a net loss. This is partly due to research and development and other ordinary operating expenses. But the outage that occurred in July 2024 continued to weigh it down as it paid legal fees and customer incentives intended to rebuild trust and improve retention. Fortunately, the worst of those expenses appears to be behind it.
On the other hand, Docusign is profitable on a GAAP basis, with around $1.1 billion in free cash flow and revenue growing 8.2% year over year. Its valuation is much lower than CrowdStrike's, and share repurchases also make its stock more attractive to investors seeking value. Its Intelligent Agreement Management platform could provide a new avenue for growth.
Although I tend to choose more conservative investments, this time I would choose CrowdStrike for its stronger long-term growth potential. Despite its valuation and potential volatility, I believe it deserves a position in a long-term, diversified portfolio.
The annual list recognizes B2B companies that provide essential services and expertise to help entrepreneurs and businesses grow.
, /PRNewswire/ -- Docusign (Nasdaq: DOCU) today announced it has been named a 2026 Inc. Power Partner Awards winner for the second year in a row, recognizing the company among the leading B2B partners supporting entrepreneurs and businesses across the country.
Docusign is a 2026 Inc. Power Partner Award Winner
The annual Inc. Power Partner Awards honor B2B companies that have demonstrated a track record of helping entrepreneurs and businesses navigate the challenges of building and growing a company. From hiring and compliance to technology, infrastructure, fundraising, marketing and more, these partners provide expertise and services that enable businesses to operate, scale and pursue their ambitions.
"Business owners have no shortage of tools at their disposal, and B2B companies need to make clear why their products and services are worth the investment," says Bonny Ghosh, editorial director at Inc. "The companies on this year's Power Partners list have done just that. They don't just have customers – they have superfans and evangelists. Across industries like marketing, financial services and technology, they've proved their dedication to helping fellow business owners grow and succeed."
Docusign is a global leader in Intelligent Agreement Management (IAM), helping over 1.9 million customers create, sign, and manage agreements. Today, the Docusign IAM platform uses agreement-specific AI across the agreement lifecycle to automate workflows with agents and turn once-static contract data into actionable insights, helping businesses support faster decision making, reduce risk, and accelerate revenue. "It's an honor to be recognized as an Inc. Power Partner for the second year in a row," said Allan Thygesen, CEO of Docusign.
"Businesses of every size rely on agreements to move work forward, manage risk, and build lasting relationships. Docusign is committed to helping organizations do more with their agreements through trusted, intelligent solutions that connect the agreement process from preparation and negotiation to signing and action. This recognition reflects the impact our customers and partners make possible every day."
Powered by Docusign Iris, Docusign's AI engine, IAM helps teams create, negotiate, sign and manage agreements with greater efficiency and insight. Its workflow-first approach is designed to connect agreement work across the tools and processes businesses already use with more than 1,100 integrations available today, helping teams spend less time managing paperwork and more time advancing their most important work.
Recent partnerships with OpenAI and Anthropic demonstrate how Docusign is extending agreement intelligence to businesses of all sizes. Through Docusign connectors in ChatGPT's small-business collection and Claude for Small Business, business owners can search agreement obligations, draft documents, track renewals and manage agreement workflows using natural language, without switching tools. Docusign also recently announced the general availability of its Model Context Protocol (MCP) Server, extending agreement intelligence to any AI agent through a single, open interface.
This recognition follows other recent honors for Docusign, including being named a Leader in the IDC MarketScape for Worldwide Integrated Signing Workflow Software 2026, being named one of Newsweek's Most Trustworthy Software and Telecommunications companies in America for three years in a row, and featured in Fast Company's World's Most Innovative Companies list of 2026 and Fortune's Future 50 list of companies with the greatest long-term growth prospects.
For more information on Inc.'s Power Partner Awards or to view the complete list of honorees, visit https://www.inc.com/power-partner-awards.
About Docusign
Docusign brings agreements to life. Over 1.9 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business-critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using the Docusign AI-native IAM platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and contract lifecycle management (CLM). For more information, visit http://www.docusign.com.
About Inc.
Inc. is the leading media brand and playbook for the entrepreneurs and business leaders shaping our future. Through its journalism, Inc. aims to inform, educate and elevate the profile of its community: the risk-takers, the innovators and the ultra-driven go-getters who are creating the future of business. Inc. is published by Mansueto Ventures, along with fellow leading business publication Fast Company. For more information, visit www.inc.com.
In the latest trading session, DocuSign (DOCU - Free Report) closed at $76.66, marking a +2.69% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.
Shares of the provider of electronic signature technology have appreciated by 8.08% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.92%, and the S&P 500's gain of 1.46%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is forecasted to report an EPS of $1.17, showcasing a 15.84% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $888.69 million, showing a 8.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.61 per share and a revenue of $3.5 billion, demonstrating changes of +20.05% and +8.79%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.88% higher. DocuSign presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 16.2. For comparison, its industry has an average Forward P/E of 20.63, which means DocuSign is trading at a discount to the group.
We can also see that DOCU currently has a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.22.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
DocuSign (DOCU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this provider of electronic signature technology have returned +6.9% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Internet - Software industry, to which DocuSign belongs, has gained 4.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, DocuSign is expected to post earnings of $1.17 per share, indicating a change of +15.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
The consensus earnings estimate of $4.61 for the current fiscal year indicates a year-over-year change of +20.1%. This estimate has changed +1.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.21 indicates a change of +13% from what DocuSign is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for DocuSign.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of DocuSign, the consensus sales estimate of $888.8 million for the current quarter points to a year-over-year change of +8.6%. The $3.5 billion and $3.79 billion estimates for the current and next fiscal years indicate changes of +8.8% and +8.1%, respectively.
Last Reported Results and Surprise HistoryDocuSign reported revenues of $875.75 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $1.16 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $867.57 million, the reported revenues represent a surprise of +0.94%. The EPS surprise was +7.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
DocuSign is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about DocuSign. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: DocuSign (DOCU - Free Report) Docusign, Inc., founded in 2003 and headquartered in San Francisco, is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a suite of cloud applications designed to automate and connect the entire agreement process. Its products support agreement preparation, execution, analysis and management.
DOCU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. DOCU has a Momentum Style Score of B, and shares are up 0.6% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.07 to $4.61 per share. DOCU boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DOCU should be on investors' short list.
Key Takeaways Docusign's IAM platform contributed 15.1% to ARR in Q2'27, with 18-19% expected for the full year.DOCU's adjusted operating income rose 16% and free cash flow rose 35% y/y in Q2'27.Docusign faces gross margin pressure from cloud migration investments & intensifying AI-driven competition. Docusign (DOCU - Free Report) stock has gained 54.3% over the past six months, outpacing the industry's 23.1% return. The Zacks S&P 500 Composite has rallied 11.3% over the same period.
6-Month Share Price Performance Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DOCU's fiscal 2027 revenues is $3.5 billion, implying 8.8% year-over-year growth. For fiscal 2028, the top line is expected to rise 8%.
The consensus mark for fiscal 2027 earnings per share (EPS) is $4.59, suggesting a 19.5% year-over-year increase. The bottom line is expected to increase 13% in fiscal 2028.
Factors That Augur Well for DOCU's SuccessIAM Adoption: Intelligent Agreement Management (IAM) contributed 15.1% to the total annual recurring revenue (ARR) in the second quarter of fiscal 2027, up from 12.6% in the preceding quarter. The surge in demand for AI-driven agreement automation is driving adoption across commercial and enterprise customers.
For fiscal 2027, management anticipates IAM's ARR contribution between 18% and 19%, suggesting persistent adoption. The platform streamlines contract workflows, enhances productivity and unlocks agreement data, creating cross-selling opportunities within the company's customer base.
AI-backed Expansion: Docusign leverages AI-driven capabilities and partnerships to strengthen its competitive position. Its IAM platform provides a multi-faceted approach toward incorporating AI assistants, prebuilt agents and Agent Studio, supporting customers' contract analysis automation, document reviews, compliance procedures and workflows.
Integrations with Slack, Google Gemini, Anthropic, OpenAI, Perplexity and Microsoft Copilot raise the accessibility of agreement management across widely used enterprise applications.
Solid Cash Position & Operational Prowess: In the second quarter of fiscal 2027, DOCU's adjusted operating income increased 16% year over year, accompanied by its margin expanding 180 basis points. The free cash flow escalated 35% year over year.
The company holds cash and investments just under $1 billion with no debt, maintaining a solid financial position. Sustained operational efficiency, AI investments and share repurchases appear to be the key to long-term earnings growth and shareholder value creation.
Risks Faced by DocusignGross Margin Erosion: Docusign's profitability is at risk from the strategic pivot from on-premises infrastructure to cloud-based operations. In the second quarter of fiscal 2027, the adjusted gross margin plummeted to 81.7% year over year due to cloud migration investments.
Management anticipates the fiscal 2027 gross margin to decline marginally as the migration progresses, with the process anticipated to be completed by the end of the year. Continued infrastructure and technology investments are key to AI-powered capability expansion, which could easily deteriorate gross margin expansion.
Competition Pressure: The company shoulders fierce competitive pressure from established contract lifecycle management providers, emerging legal technology companies and AI-driven workflow solutions. Competitive pressure could increase from the growing capabilities of general-purpose AI platforms, influencing customer purchasing decisions.
DOCU's Zacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader Zacks Computer and Technology sector include Avnet (AVT - Free Report) and Ciena (CIEN - Free Report) . These two companies presently have a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Avnet has a long-term earnings growth expectation of 31.3%. AVT delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Ciena has a long-term earnings growth expectation of 12%. CIEN delivered a trailing four-quarter earnings surprise of 3.8%, on average.
DocuSign (DOCU - Free Report) ended the recent trading session at $72.31, demonstrating a +1.89% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 1.73% lagged the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. On that day, DocuSign is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 15.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $888.77 million, up 8.61% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.59 per share and a revenue of $3.5 billion, demonstrating changes of +19.53% and +8.76%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.61% higher. DocuSign currently has a Zacks Rank of #3 (Hold).
Investors should also note DocuSign's current valuation metrics, including its Forward P/E ratio of 15.45. This signifies a discount in comparison to the average Forward P/E of 20.7 for its industry.
We can also see that DOCU currently has a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Docusign expands its Salesforce partnership, making its IAM platform natively available to all AI agents across Salesforce and Slack
, /PRNewswire/ -- Docusign (Nasdaq: DOCU) today announced the next chapter in its more than 20-year partnership with Salesforce (NYSE: CRM). The expanded partnership brings the Docusign Intelligent Agreement Management (IAM) platform natively into Salesforce, Agentforce, and Slack, helping revenue teams move agreements forward without ever leaving the tools they already work in.
For decades, agreement data has been locked inside unstructured documents and disconnected file folders, forcing sales teams to work around the very data that should be accelerating their deals. Jointly, Docusign and Salesforce are closing that gap by reducing friction to close deals faster, surfacing contract intelligence that gives sellers context ahead of a renewal, and flagging hidden risk from obligations buried in MSAs, before they become a problem. All within the same workflow reps already use. With more agreement work moving into AI agents, Docusign is establishing itself as the trusted agreement layer those agents rely on, across the applications, workflows, and platforms where business gets done.
"Every agreement has the power to move a business forward, yet disconnected processes often stall growth," said Bill Patterson, President and Chief Commercial Officer at Salesforce. "Building on two decades of partnership with Docusign, we're bringing agreement intelligence and workflows natively into Salesforce, Agentforce, and Slack so people and AI agents can turn executing agreements into a competitive advantage."
An open agreement layer, now extended natively into Salesforce
Docusign continues to bring its agreement capabilities and intelligence directly into emerging agentic environments, including Slackforce and the Headless Toolkit. Docusign was also named a 2027 Salesforce Partner of the Year for Global Partner and System of Engagement, recognizing IAM integrations that let customers close deals, surface contract insights for renewals, and collaborate on agreements without leaving their flow of work.
"Agreements are where revenue gets made or lost, and for too long they've lived outside the systems that our joint customers rely on every day," said Paula Hansen, President and Chief Revenue Officer, Docusign. "By extending Docusign's integration across Salesforce, Agentforce, and Slack, we're putting agreement data directly into the hands of the teams closing and managing deals, rather than leaving it siloed in a separate platform. The same intelligence that closes a deal can flag the renewal, surface the expansion, and uncover the cross-sell. Agreements aren't a step in the process, they're a constant source of intelligence that drives a business forward."
With Docusign integrations across the Salesforce platform, teams can:
Get instant answers and generate agreements from within Agentforce: Sellers can ask questions via conversational chats about agreements and generate or send contracts without leaving their existing Agentforce experience. Prepare, negotiate, and finalize deals in one place: Sales teams can manage the full agreement lifecycle directly inside their CRM, from initial drafting through final signature. Extend visibility from first customer touchpoint to signed agreement: Teams can connect customer conversations directly to agreement workflows, maintaining visibility through post-signature archiving. Review contracts and track renewals with AI assistance: Legal and contract teams manage contract reviews, access renewal details and post-execution analytics, all without leaving their CRM. Act on agreements without leaving Slack: Because approvals and negotiation happen in conversation, teams can request a contract, pull live customer and pricing data, apply approved terms, and route to legal, all in the same Slack thread where the deal is already being discussed. Docusign has most recently expanded beyond basic data connections to power deep, agentic workflows inside Salesforce Agentforce. Sales teams can now use the AI agents they already rely on to track contract terms, surface renewal dates, and launch agreement workflows, all without leaving their CRM.
On CNBC’s “Halftime Report Final Trades,” Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, picked Netflix, Inc. (NASDAQ:NFLX).
On Oct. 9, Morgan Stanley analyst Sean Diffley maintained an Overweight rating on Netflix and lowered the price target from $83 to $80.
Jim Lebenthal, partner and chief market strategist at Cerity Partners, recommended AbbVie Inc. (NYSE:ABBV), saying momentum here is strong.
On Oct. 7, AbbVie disclosed that the Food and Drug Administration granted two Breakthrough Therapy Designations (BTDs) to telisotuzumab adizutecan.
Don’t forget to check out our premarket coverage here
Jenny Van Leeuwen Harrington, chief executive officer of Gilman Hill Asset Management, LLC, said DocuSign, Inc. (NASDAQ:DOCU) has nearly 10% free cash flow yield.
DocuSign posted better-than-expected financial results for the second quarter of fiscal 2027 on Sept. 3. Docusign posted second-quarter revenue of $875.75 million, beating the consensus estimate of $857.43 million, according to Benzinga Pro. The agreement management company reported adjusted earnings of $1.16 per share, beating estimates of $1.09 per share.
Price Action Netflix shares gained 0.4% to close at $70.61 on Monday. AbbVie gained 1.7% to settle at $281.12 on Monday. DocuSign shares slipped 0.2% to close at $70.97. Photo via Shutterstock
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Digital Turbine (NASDAQ:APPS – Get Free Report) and Docusign (NASDAQ:DOCU – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Risk and Volatility Digital Turbine has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500. Comparatively, Docusign has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Earnings & Valuation This table compares Digital Turbine and Docusign”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Digital Turbine $565.25 million 2.23 -$37.73 million ($0.26) -40.12 Docusign $3.22 billion 4.13 $309.08 million $1.64 43.34 Docusign has higher revenue and earnings than Digital Turbine. Digital Turbine is trading at a lower price-to-earnings ratio than Docusign, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership 63.7% of Digital Turbine shares are held by institutional investors. Comparatively, 77.6% of Docusign shares are held by institutional investors. 6.0% of Digital Turbine shares are held by insiders. Comparatively, 0.6% of Docusign shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings This is a summary of current ratings and recommmendations for Digital Turbine and Docusign, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Digital Turbine 1 2 5 0 2.50 Docusign 1 14 3 0 2.11 Digital Turbine presently has a consensus target price of $14.80, suggesting a potential upside of 41.90%. Docusign has a consensus target price of $67.33, suggesting a potential downside of 5.27%. Given Digital Turbine’s stronger consensus rating and higher probable upside, research analysts plainly believe Digital Turbine is more favorable than Docusign.
Profitability This table compares Digital Turbine and Docusign’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Digital Turbine -4.46% 38.34% 8.27% Docusign 9.82% 18.29% 8.42% Summary Docusign beats Digital Turbine on 8 of the 14 factors compared between the two stocks.
(Get Free Report)
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
About Docusign (Get Free Report)
Docusign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track Docusign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of Docusign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. Docusign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.
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New Docusign PDF Editor makes it easier to create, edit, and prepare contracts – key steps of the agreement process
, /PRNewswire/ -- Docusign (Nasdaq: DOCU) today announced Docusign PDF Editor, a new offering that brings PDF editing capabilities to Docusign, connecting document preparation with the broader Intelligent Agreement Management (IAM) platform.
Docusign PDF Editor Contracts don't start with a signature, and they don't end there. But preparing and signing a document often happen in separate workflows. Even a small change can mean opening another tool, editing the file, exporting a new version and uploading it again before the agreement can move forward. With more than 70% of Docusign eSignature requests initiated directly in Docusign starting as PDFs, this extra work adds up.
Docusign PDF Editor simplifies that process by giving users powerful PDF editing capabilities and a direct integration into Docusign – the company 95% of Fortune 500 businesses already trust for eSignature. It's a new offering for the Docusign IAM platform that helps businesses create, sign, manage, and now edit agreements in a smarter and more connected way.
"You shouldn't have to jump in between tools just to get a contract ready for signature," said Graham Sheldon, Chief Product Officer at Docusign. "With Docusign PDF Editor, you can now edit your PDF, send it for signature, and manage the contract afterward. It's the newest way we're bringing the entire agreement process together with Docusign IAM."
Docusign PDF Editor is a desktop application designed for teams across legal, sales, procurement, HR and more. With Docusign PDF Editor, users can:
Create and edit PDFs: Edit text and images, combine files, reorder or delete pages, redact sensitive information, add annotations, create forms, and convert file types. Move directly to signature: Once a document is ready, send it into the Docusign signing workflow without manually having to upload documents. Preserve a full auditable record: Changes made before signing remain connected to the agreement history. Once a document is signed, editing is locked to preserve its integrity. Manage agreements after signing: Once signed, agreements are analyzed using AI in Docusign, where teams can quickly answer contracting questions, track key dates like renewals, and surface potential risks and other insights. With all of these capabilities available directly in the Docusign workflow, Docusign PDF Editor can help businesses reduce manual handoffs, simplify how they manage everyday document work, and reduce the opportunity for version confusion or sensitive documents moving unnecessarily between multiple tools. With PDF Editor, Docusign is expanding its platform with powerful PDF editing, bringing document preparation together with its existing capabilities for creating, signing and managing agreements.
Availability
The Docusign PDF Editor desktop application will be available for IAM and eSignature customers to purchase starting on November 2, 2026 in English, Dutch, French, German, Italian, and Spanish with additional languages planned for 2027.
About Docusign
Docusign brings agreements to life. Over 1.9 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business-critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using the Docusign AI-native IAM platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and contract lifecycle management (CLM). For more information, visit http://www.docusign.com.
Media Contact:
Docusign Corporate Communications
[email protected]
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Stock to Watch: DocuSign (DOCU - Free Report) Docusign, Inc., founded in 2003 and headquartered in San Francisco, is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a suite of cloud applications designed to automate and connect the entire agreement process. Its products support agreement preparation, execution, analysis and management.
DOCU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. DOCU has a Growth Style Score of A, forecasting year-over-year earnings growth of 19.5% for the current fiscal year.
For fiscal 2027, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $4.59 per share. DOCU boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DOCU should be on investors' short list.
BTCS (NASDAQ:BTCS – Get Free Report) and Docusign (NASDAQ:DOCU – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Insider and Institutional Ownership 3.5% of BTCS shares are owned by institutional investors. Comparatively, 77.6% of Docusign shares are owned by institutional investors. 16.9% of BTCS shares are owned by insiders. Comparatively, 0.6% of Docusign shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations This is a breakdown of current ratings and target prices for BTCS and Docusign, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score BTCS 0 2 1 0 2.33 Docusign 1 14 3 0 2.11 BTCS currently has a consensus target price of $5.00, indicating a potential upside of 249.65%. Docusign has a consensus target price of $67.33, indicating a potential downside of 2.43%. Given BTCS’s stronger consensus rating and higher possible upside, research analysts plainly believe BTCS is more favorable than Docusign. Risk and Volatility BTCS has a beta of 3.29, suggesting that its stock price is 229% more volatile than the S&P 500. Comparatively, Docusign has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Valuation & Earnings This table compares BTCS and Docusign”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio BTCS $16.49 million 4.55 -$33.35 million ($3.31) -0.43 Docusign $3.22 billion 4.01 $309.08 million $1.64 42.08 Docusign has higher revenue and earnings than BTCS. BTCS is trading at a lower price-to-earnings ratio than Docusign, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares BTCS and Docusign’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets BTCS -746.29% -14.40% -9.21% Docusign 9.82% 18.29% 8.42% Summary Docusign beats BTCS on 9 of the 14 factors compared between the two stocks.
About BTCS (Get Free Report)
BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.
About Docusign (Get Free Report)
Docusign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track Docusign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of Docusign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. Docusign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.
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What happened Docusign, Inc. (NASDAQ: DOCU) President and CEO and director Allan C. Thygesen sold 26,250 shares on 2026-10-01. The Form 4 says the sale was made under a Rule 10b5-1 trading plan. It was split across three trades, with 7,475 shares sold at $68.53, 13,598 shares at $69.45 and 5,177 shares at $69.98. The shares changed hands for about $1.82 million total.
After the last transaction, Thygesen held 166,801 shares. The filing was signed on 2026-10-02. That leaves the CEO with a large remaining position, and the Form 4 gives investors a dated snapshot of management ownership rather than an operating update. Thygesen is still a large holder after the sale.
Key numbers Metric Latest Change Source Shares sold 26,250 shares SEC Form 4 Sale value about $1.82 million SEC Form 4 Shares held after sale 166,801 shares SEC Form 4 Sale price range from $68.53 to $69.98 per share SEC Form 4 Read more: Docusign (DOCU) stock analysis and investment case Why it matters OptimistFi calculates the 26,250 shares were about 13.6% of Thygesen's pre-trade holding. That makes the move a meaningful trim, not a token trade. The comparison matters because the sale is large relative to the stake that remained. It also shows the sale was large relative to the stake that remained, which is why it is worth reading even as a planned trade.
OptimistFi's case is that Docusign works if its trusted e-signature position becomes the control point for broader digital agreement workflows, not if signing is absorbed as a cheap feature. This filing is mixed for that thesis because it shows the CEO reducing a personal stake, but the Rule 10b5-1 plan is the strongest caveat in the filing. A prearranged plan means the sale may not reflect a fresh negative view on the business.
Related: Docusign's AI Platform Takes a Bigger Share of Recurring Revenue
What's next Docusign's next quarterly report is the next scheduled check on that case. A report that shows the company still anchors broader agreement workflows would strengthen the thesis, while a weaker report would make this planned sale easier to dismiss as routine. Until then, the Form 4 mainly shows that Thygesen sold shares at prices from $68.53 to $69.98 and still held 166,801 shares after the last trade. That keeps the filing focused on ownership, not operations.
More from OptimistFi DOCU stock: the Docusign thesis, its status and the next test to watch Century Therapeutics, Inc. (NASDAQ: IPSC) Adds Two CNTY-813 Batches Applied Digital Corporation (NASDAQ: APLD) Brings 250 MW Online ON Semiconductor Corporation (NASDAQ: ON) Cuts Its Deal Cost by 19% Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC Form 4 — Allan C. Thygesen sale, post-sale holding, and Rule 10b5-1 plan Read the full OptimistFi thesis on Docusign, Inc.: https://optimistfi.com/stocks/DOCU
See what would break the Docusign, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.
The full Docusign, Inc. investment case, its status and the next test to watch live on the Docusign, Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
Key Takeaways Docusign jumped 50.8% in three months, outpacing its industry and the broader market.DOCU's customer base topped 1.9M as larger accounts and retention strengthened.Docusign's free cash flow rose 35.9% to $295.8M, supporting continued share buybacks. Docusign (DOCU - Free Report) stock has jumped 50.8% over the past three months, significantly outperforming the industry’s 26.2% growth and the Zacks S&P 500 Composite's 2.7% return.
DOCU’s 3-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
DOCU’s Broad Customer Momentum Drives GrowthDocusign’s customer base grew nearly 10% year over year to more than 1.9 million in the second quarter of fiscal 2027, supported by strength in the digital channel. Dollar net retention among direct customers improved to 103% during that period, with customer expansion contributing more to retention gains.
Customers generating more than $300,000 in annual contract value increased 14% to nearly 1,300, highlighting deeper adoption among larger accounts. International operations contributed 31% to revenues, while foreign exchange added 1.3 percentage points to reported revenue growth. Continued adoption of the intelligent agreement management platform across customer segments supports further wallet expansion and retention gains. Rising penetration among larger customers also strengthens recurring revenue growth over time.
DOCU’s Operating Leverage Supports ProfitabilityDOCU’s non-GAAP operating income increased 15.9% year over year to $276.8 million, whereas its operating margin expanded 180 basis points to 31.6%. The margin exceeded management’s guidance midpoint by 160 basis points, with roughly half of the upside driven by stronger revenues and the balance reflecting cost discipline and higher capitalized software costs. DOCU ended the second quarter of fiscal 2027 with 7,137 employees, up 3% year over year, with all net headcount growth concentrated in lower-cost locations. Continued expense discipline and a favorable hiring mix support operating leverage. Sustained revenue growth could provide additional scope for margin expansion over time.
DOCU’s Cash Flow Supports Share RepurchasesDocusign’s operating cash flow increased 36% to $334.5 million, free cash flow rose 35.9% year over year to $295.8 million in second-quarter fiscal 2027, whereas the free cash flow margin expanded to 34% from 27%. The company repurchased $306.5 million in shares during the period and retained $2.1 billion of authorization for future buybacks. Shares outstanding declined 8% year over year to 193 million, providing support to per-share results. Continued cash generation could sustain additional repurchases.
DOCU’s Zacks Rank & Stocks to ConsiderDocusign currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Computer and Technology sector are Analog Devices, Inc. (ADI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .
Analog Devices carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 25%.
ADI delivered a trailing four-quarter earnings surprise of 4.8%, on average.
Applied Materials also has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 28.1%.
AMAT beat earnings estimates in the trailing four quarters, with an average earnings surprise of 5.5%.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: DocuSign (DOCU - Free Report) Docusign, Inc., founded in 2003 and headquartered in San Francisco, is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a suite of cloud applications designed to automate and connect the entire agreement process. Its products support agreement preparation, execution, analysis and management.
DOCU is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. DOCU has a Momentum Style Score of A, and shares are up 5.5% over the past four weeks.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.04 to $4.58 per share. DOCU also boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DOCU should be on investors' short list.
DocuSign (DOCU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this provider of electronic signature technology have returned +17.1%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Internet - Software industry, which DocuSign falls in, has gained 13.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
DocuSign is expected to post earnings of $1.16 per share for the current quarter, representing a year-over-year change of +14.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The consensus earnings estimate of $4.58 for the current fiscal year indicates a year-over-year change of +19.3%. This estimate has changed +1.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.18 indicates a change of +13.1% from what DocuSign is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, DocuSign is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For DocuSign, the consensus sales estimate for the current quarter of $888.77 million indicates a year-over-year change of +8.6%. For the current and next fiscal years, $3.5 billion and $3.78 billion estimates indicate +8.7% and +8% changes, respectively.
Last Reported Results and Surprise HistoryDocuSign reported revenues of $875.75 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $1.16 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $867.57 million, the reported revenues represent a surprise of +0.94%. The EPS surprise was +7.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
DocuSign is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about DocuSign. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Robert Chatwani, President General Mgr, Growth at Docusign (DOCU +2.68%), sold 14,676 shares of common stock on Sept. 17, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold14,676Transaction value~$1.0 millionPost-transaction shares (directly held)75,928Post-transaction value~$5.3 millionTransaction value based on SEC Form 4 weighted average sale price ($69.41); post-transaction value based on Sept. 17, 2026, market close ($70.64).
Key questionsWhat was the regulatory framework for this transaction?
The executive executed this sale pursuant to a Rule 10b5-1 plan, a mechanism that allows company insiders to establish predetermined trading schedules for selling shares to satisfy liquidity needs.How did the execution price compare to the market close on the date of the trade?
The shares were sold at a weighted average price of $69.41, while the stock reached a market close of $70.64 on Sept. 17, 2026.What is the insider's remaining ownership interest in the company?
Following the disposition, the executive retains a direct position of 75,928 shares, which represents approximately 0.0398% of the company's outstanding equity.What has been the recent performance context for the stock?
At the time of the transaction on Sept. 17, 2026, the company's one-year total return was -16%.Company OverviewMetricValueShare Price (as of market close 2026-09-22)$66.76Market Capitalization$12.6 billionRevenue (TTM)$3.4 billionNet Income (TTM)$329.9 millionCompany SnapshotDocusign provides a comprehensive suite of electronic signature and digital agreement management solutions, including core e-signature capabilities, Contract Lifecycle Management (CLM), and agreement workflow automation tools that serve as primary revenue drivers across enterprise and mid-market segments.The company operates a subscription-based software-as-a-service (SaaS) business model, generating recurring revenue through tiered licensing arrangements while supplementing core revenue through implementation services and professional consulting engagements.Docusign serves a diverse customer base spanning financial services, healthcare, legal, real estate, and technology sectors, with particular penetration among enterprises requiring high-volume agreement processing and compliance-intensive workflows.
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Docusign is a global leader in the digital agreement management software market, commanding a substantial installed base of 7,044 employees and generating $3.4 billion in TTM revenue with $330 million in net income.
The company's competitive positioning is anchored in its established market presence, an extensive product ecosystem spanning agreement preparation, execution, and lifecycle management, and deep integrations with enterprise systems.
Docusign's strategic focus on expanding its CLM capabilities and driving platform consolidation positions it to capture incremental wallet share from customers seeking unified digital agreement solutions.
What this transaction means for investorsThis sale shouldn't concern investors. It was executed under a Rule 10b5-1 plan, which insiders commonly use to avoid concerns about acting on non-public information. The executive still retains the majority of the stake, worth about $5 million at current share prices.
Importantly, Docusign has reported improving growth this year. In the July-ending fiscal quarter, revenue grew 9.4% year over year. Margins are also expanding, with operating profit surging 80% year over year to $118 million.
Analysts expect earnings to grow at an annualized rate of 22% over the next several years. Assuming the company delivers, that should support the stock's valuation, which is currently modest at 13.7x forward earnings estimates.
Docusign (NASDAQ:DOCU – Get Free Report) and Life360 (NASDAQ:LIF – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Earnings and Valuation This table compares Docusign and Life360″s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Docusign $3.22 billion 3.98 $309.08 million $1.64 41.81 Life360 $572.56 million 5.84 $150.83 million $1.71 24.02 Docusign has higher revenue and earnings than Life360. Life360 is trading at a lower price-to-earnings ratio than Docusign, indicating that it is currently the more affordable of the two stocks. Profitability This table compares Docusign and Life360’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Docusign 9.82% 18.29% 8.42% Life360 25.73% 5.66% 3.17% Volatility and Risk Docusign has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Life360 has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500.
Insider & Institutional Ownership 77.6% of Docusign shares are held by institutional investors. Comparatively, 20.0% of Life360 shares are held by institutional investors. 0.6% of Docusign shares are held by insiders. Comparatively, 6.8% of Life360 shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings This is a breakdown of current recommendations and price targets for Docusign and Life360, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Docusign 1 14 3 0 2.11 Life360 0 5 5 1 2.64 Docusign presently has a consensus target price of $67.33, indicating a potential downside of 1.80%. Life360 has a consensus target price of $59.94, indicating a potential upside of 45.96%. Given Life360’s stronger consensus rating and higher possible upside, analysts clearly believe Life360 is more favorable than Docusign.
Summary Life360 beats Docusign on 9 of the 15 factors compared between the two stocks.
About Docusign (Get Free Report)
Docusign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track Docusign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of Docusign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. Docusign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.
About Life360 (Get Free Report)
Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.
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Key Takeaways Docusign shares gained 13.4% in a month as customer expansion improved and IAM grew as a share of ARR.IAM reached 15.1% of Docusign's ARR in Q2 fiscal 2027, up from 10.8% at fiscal 2026 year-end.Docusign raised fiscal 2027 revenue guidance to $3.499-$3.507B as free cash flow jumped 35.9%. Docusign, Inc. (DOCU - Free Report) shares have gained 13.4% in the past month as customer expansion improved and Intelligent Agreement Management (IAM) became a larger part of annual recurring revenue.
The rally has operational support, but its durability depends on continued IAM adoption, execution against raised fiscal 2027 targets and disciplined pricing as competition broadens.
Why DOCU's One-Month Rally Has Fundamental SupportDocusign ended the July quarter with more than 1.9 million customers, up nearly 10% year over year. Direct-customer dollar net retention improved to 103%, with expansion contributing more to the gain.
Larger accounts are also expanding. Customers spending more than $300,000 in annual contract value rose 14% to nearly 1,300 for a second consecutive quarter of double-digit growth, giving the recent share-price move a firmer operating backdrop.
Docusign's IAM Mix Keeps ExpandingIAM represented 15.1% of total annual recurring revenue (ARR) in the second quarter of fiscal 2027, up from 12.6% in the first quarter and 10.8% at fiscal 2026 year-end. Management expects the mix to reach 18%-19% exiting the fourth quarter.
Most IAM ARR is coming from the installed base, while eSignature-to-IAM upgrades are creating expansion opportunities. Salesforce, Inc. (CRM - Free Report) is relevant on the ecosystem side because its platform strategy emphasizes AI agents and Slack-based workflows. Docusign's Salesforce and Slack integrations extend IAM into tools customers already use.
DOCU's Raised Outlook Adds Earnings SupportDocusign raised fiscal 2027 revenue guidance to $3.499-$3.507 billion, implying about 9% growth at the midpoint. ARR growth is expected at 8.5%-9%, versus 8% in fiscal 2026.
Full-year non-GAAP operating margin guidance of 31%-31.5% also points to continued operating leverage. In the latest quarter, adjusted earnings of $1.16 per share rose 26.1% and topped the Zacks Consensus Estimate of $1.08, providing recent execution support for the higher outlook.
Docusign's Cash Flow Backs Aggressive BuybacksFree cash flow climbed 35.9% to $295.8 million in the latest quarter, while free cash flow margin improved to 34% from 27%. Docusign repurchased $306.5 million of stock during the period.
The company still had $2.1 billion authorized for future repurchases, and diluted shares outstanding declined 8% year over year to 193 million. A lower share count can support per-share results, although buybacks do not replace operating growth.
DOCU's Valuation and Risks Test the RallyDOCU trades at 14.2X forward 12-month consensus EPS estimate, below 29.4X for its Zacks sub-industry, 20.4X for the Zacks Computer and Technology sector and 19.5X for the S&P 500. Adobe Inc. (ADBE - Free Report) , through Acrobat and Acrobat Sign, remains a direct e-signature competitor.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Discounting is a key test as IAM expands. Docusign says larger enterprises may seek sizable price concessions, while lower-priced bundles and generic AI tools could intensify competition. Current assets also remained below current liabilities as of July 31, despite $973.1 million in cash, cash equivalents and investments and no debt.
DOCU's Growth Signals Offset a Mixed Value ProfileThe recent advance aligns with improving customer expansion and a larger IAM contribution, while raised guidance and cash generation add support. Pricing competition and execution around the platform transition remain the main checks on further momentum.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DOCU also has a Growth Score of A, Momentum Score of B, Value Score of C and a VGM Score of A. The Style Scores indicate favorable growth and momentum characteristics, while the Value Score is less favorable. Because Style Scores complement rather than replace the Zacks Rank, the #3 rank keeps the near-term signal measured.
Key Takeaways IAM reached 15.1% of Docusign's ARR in fiscal Q2 2027, up from 12.6% in the prior quarter.DOCU trades at 14.2X forward earnings, below its sub-industry, sector and S&P 500 benchmarks.Docusign's fiscal 2027 EPS estimate rose 2.5% in four weeks, while operating margin hit 31.6%. Docusign, Inc. (DOCU - Free Report) is giving investors more to evaluate than its established eSignature franchise. Intelligent Agreement Management, or IAM, is expanding the company's reach while earnings expectations and profitability are improving.
The counterweight is weak near-term liquidity coverage and a competitive market that could pressure pricing. The investment case therefore rests on whether IAM can deepen customer spending without sacrificing the economics behind recent operating gains.
Docusign's Growth Case Extends Beyond eSignatureIAM broadens Docusign into agreement creation, review, workflow automation and post-signature management. The platform accounted for 15.1% of total annual recurring revenue in the second quarter of fiscal 2027, up from 12.6% in the first quarter.
Customers had ingested more than 300 million documents through Agreement Manager. Most IAM annual recurring revenue is coming from Docusign's existing installed base, giving the company an avenue to expand customer relationships as use cases move beyond electronic signatures.
DOCU's Forward Valuation Sits Below BenchmarksDOCU trades at 14.2X forward 12-month consensus EPS estimate, below 29.4X for its Zacks sub-industry, 20.4X for the Zacks sector and 19.5X for the S&P 500. That discount gives investors a lower valuation benchmark against which to judge IAM execution.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
The valuation gap does not remove execution risk. Docusign still needs broader platform adoption to translate into durable revenue and earnings growth while preserving pricing discipline.
Docusign's Estimates and Margins Are ImprovingThe Zacks Consensus Estimate for fiscal 2027 earnings is $4.59 per share and has risen 2.5% in the past four weeks. Projected fiscal 2027 earnings growth stands at 19.5%, adding a favorable estimate-revision trend to the operating story.
Non-GAAP operating margin reached 31.6% in the latest quarter, up 180 basis points year over year. Stronger revenues contributed to the outperformance, while cost discipline and higher capitalized software costs also supported the margin result.
DOCU's Liquidity and Pricing Risks Need ScrutinyDocusign had $1.27 billion of current assets against $1.97 billion of current liabilities as of July 31, while its current ratio stood at 0.64. The company still held $973.1 million in cash, cash equivalents and investments and carried no debt.
Competition could also limit monetization. Adobe Inc. (ADBE - Free Report) markets Acrobat Sign as a stand-alone e-signature solution. Dropbox, Inc. (DBX - Free Report) offers Dropbox Sign for electronic signatures. Docusign also faces lower-priced or bundled alternatives and emerging competition from general-purpose AI tools, which could increase pressure for discounts.
Docusign's Cash Returns Depend on BuybacksDocusign does not pay a cash dividend, leaving share-price appreciation and repurchases as the main direct avenues for shareholder returns. The company repurchased $306.5 million of stock in the latest quarter.
Another $2.1 billion remained under its repurchase authorization. Buybacks helped reduce diluted shares outstanding 8% year over year, supporting per-share results, although repurchases do not provide the recurring income that dividend-focused investors may seek.
DOCU's Style Scores Favor Growth Over ValueDOCU's improving IAM mix, earnings outlook and relative valuation are balanced by pricing competition and low near-term liquidity coverage. The setup offers evidence of better operating execution, but the risk profile remains relevant when assessing how much of that progress is already reflected in the shares.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DOCU has a Growth Score of A, Momentum Score of B, Value Score of C and VGM Score of A. The Growth Score supports the growth profile, while the VGM Score reflects a favorable combined reading. Still, Style Scores complement the Zacks Rank rather than override it, leaving the near-term signal balanced.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Accenture?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Accenture (ACN - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $3.20 a share 14 days away from its upcoming earnings release on October 1, 2026.
Accenture's Earnings ESP sits at +0.33%, which, as explained above, is calculated by taking the percentage difference between the $3.20 Most Accurate Estimate and the Zacks Consensus Estimate of $3.19. ACN is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ACN is just one of a large group of Computer and Technology stocks with a positive ESP figure. DocuSign (DOCU - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on December 3, 2026, DocuSign holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.18 a share 77 days from its next quarterly update.
The Zacks Consensus Estimate for DocuSign is $1.16, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.05%.
ACN and DOCU's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Tidal Investments LLC decreased its holdings in Docusign Inc. (NASDAQ:DOCU – Free Report) by 35.4% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 44,130 shares of the company’s stock after selling 24,150 shares during the period. Tidal Investments LLC’s holdings in Docusign were worth $1,960,000 at the end of the most recent quarter.
Other hedge funds also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Docusign in the 2nd quarter valued at $927,059,000. Norges Bank acquired a new position in shares of Docusign in the fourth quarter valued at $186,795,000. Arrowstreet Capital Limited Partnership raised its position in shares of Docusign by 76.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company’s stock valued at $250,568,000 after purchasing an additional 2,283,996 shares during the period. Capital World Investors lifted its stake in shares of Docusign by 38.1% during the 4th quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock worth $397,801,000 after buying an additional 1,603,900 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Docusign during the 2nd quarter worth about $56,219,000. 77.64% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several equities research analysts have issued reports on the stock. Evercore set a $65.00 price objective on shares of Docusign in a research report on Friday, September 4th. Weiss Ratings upgraded Docusign from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 25th. Wells Fargo & Company lifted their target price on Docusign from $55.00 to $60.00 and gave the stock an “equal weight” rating in a report on Friday, September 4th. Robert W. Baird boosted their target price on shares of Docusign from $55.00 to $72.00 and gave the company a “neutral” rating in a research report on Friday, September 4th. Finally, Bank of America boosted their target price on shares of Docusign from $58.00 to $64.00 and gave the company an “underperform” rating in a research report on Friday, September 4th. Three research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $67.33.
View Our Latest Analysis on Docusign Key Stories Impacting Docusign Here are the key news stories impacting Docusign this week:
Positive Sentiment: DocuSign was named a Leader in the 2026 IDC MarketScape for Worldwide Integrated Signing Workflow Software. The recognition supports the company’s competitive standing as it expands Intelligent Agreement Management and AI-powered workflows. DocuSign Named a Leader in the IDC MarketScape Positive Sentiment: Investors continue to focus on DocuSign’s AI initiatives, including integrations with AI agents and its Model Context Protocol Server. The company also raised full-year revenue guidance and completed a $2.38 billion share-repurchase program covering more than 20% of its shares, which could support earnings per share and shareholder returns. DocuSign’s AI Push and Buyback Positive Sentiment: The consensus analyst price target rose 17.43% to $71.83, reflecting improved expectations for DOCU’s outlook. Recent quarterly results also exceeded forecasts, with $875.75 million in revenue, $1.16 in adjusted EPS and 9.4% year-over-year revenue growth. DocuSign Consensus Price Target Raised Neutral Sentiment: Director Mary Agnes Wilderotter sold 1,096 shares for approximately $77,378, reducing her position by 25.52%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, making it less informative about management’s current outlook. SEC Insider Trading Filing Neutral Sentiment: Director Anna Marrs separately sold 548 shares for about $36,716 under a 10b5-1 plan. The sale represented only 3.89% of her holdings and is unlikely, by itself, to indicate a change in business expectations. SEC Insider Trading Filing Negative Sentiment: Despite the improved outlook, DOCU trades at a relatively elevated valuation—roughly 43 times earnings—and the average analyst rating remains “Hold,” with several firms maintaining neutral or underperform ratings. This may limit upside after the recent rally. Docusign Price Performance Shares of NASDAQ:DOCU opened at $70.40 on Thursday. The company has a market capitalization of $13.16 billion, a P/E ratio of 42.93, a P/E/G ratio of 2.70 and a beta of 0.90. Docusign Inc. has a 1 year low of $40.16 and a 1 year high of $86.65. The business’s 50 day simple moving average is $59.16 and its 200 day simple moving average is $51.23.
Docusign (NASDAQ:DOCU – Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.16 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.07. The firm had revenue of $875.75 million for the quarter, compared to analyst estimates of $867.22 million. Docusign had a return on equity of 18.29% and a net margin of 9.82%.The company’s revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the company earned $0.30 EPS. On average, sell-side analysts anticipate that Docusign Inc. will post 2.1 EPS for the current fiscal year.
Insider Buying and Selling In other news, insider James P. Shaughnessy sold 12,000 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $546,480.00. Following the completion of the transaction, the insider owned 52,815 shares of the company’s stock, valued at approximately $2,405,195.10. The trade was a 18.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 15,902 shares of the company’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $43.01, for a total transaction of $683,945.02. Following the transaction, the insider owned 72,805 shares of the company’s stock, valued at $3,131,343.05. This trade represents a 17.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 183,794 shares of company stock valued at $10,557,833 in the last ninety days. Insiders own 0.59% of the company’s stock.
Docusign Company Profile (Free Report)
DocuSign, Inc is a provider of digital agreement management and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping businesses replace paper-based contracting processes with digital workflows.
The company’s products and services include DocuSign eSignature, which supports electronic signing and authentication, as well as tools for contract lifecycle management, agreement preparation, identity verification, notarial services and workflow automation.
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On September 14, 2026, Docusign Inc DOCU shares rose 6.3% to a current price of $69.76. The stock has experienced a 52-week range between $40.16 and $86.65, reflecting notable volatility in its price performance.
GF Value™ verdict: DOCU is currently priced at $69.76, which represents an 8.0% downside to its GF Value™ estimate of $75.85.GF Score™: 78/100, indicating above-average overall performance.Most notable signal: Insiders sold $26.6M worth of shares over the past 12 months, with no insider buying during the same period.Is DOCU Overvalued or Undervalued?Docusign's current price of $69.76 is below its GF Value™ estimate of $75.85, suggesting that the stock is undervalued by approximately 8.0%. This presents a potential opportunity for investors, as the market may not fully recognize the company's intrinsic value. The GF Value™ is GuruFocus' proprietary estimate based on historical trading multiples, past business growth, and projections of future performance. The assessment of being fairly valued indicates that there may be some margin of safety for potential buyers, but caution is warranted considering the overall market conditions.
Despite the favorable GF Value™ assessment, investors should consider the volatility of DOCU's stock, particularly its one-year decline of 13.0% and five-year decline of 23.6%. While the stock price is attractive relative to its GF Value™, this historical performance may signal underlying risks that investors need to evaluate before making decisions.
How Does DOCU's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)42.5x33.2x (5-Year Median)Forward P/E15.2xN/AThe current P/E ratio of 42.5x is significantly higher than its five-year median P/E of 33.2x, indicating that DOCU is trading at a premium relative to its historical averages. This suggests that while the stock is undervalued according to GF Value™, the elevated P/E ratio raises a question about whether the stock can sustain its growth trajectory in the future. The forward P/E of 15.2x indicates expectations for improved earnings, but it is essential to consider whether these expectations are achievable.
What Does DOCU's GF Score™ Tell Us?The GF Score™ is a composite score that evaluates a stock's performance across various metrics, including financial strength, profitability, growth, valuation, and momentum. Docusign's score of 78/100 reflects strong overall performance, particularly in terms of valuation where it ranks 10/10. However, its financial strength and profitability rank at 8/10 and 4/10, respectively, indicating areas where the company may be facing challenges.
MetricRatingGF Score™78Financial Strength8/10Profitability4/10Growth7/10Valuation10/10Momentum7/10The strong valuation ranking suggests that DOCU is potentially undervalued relative to its fundamentals. However, the low profitability rank indicates that the company may be experiencing challenges in generating profits, which could affect its overall growth and stability. The mixed performance across these metrics emphasizes the need for cautious consideration of DOCU's investment potential.
What Are Gurus and Insiders Doing with DOCU?Currently, six gurus hold DOCU stock, with three increasing their positions and five reducing their holdings in recent quarters. This mixed activity indicates a lack of consensus among institutional investors regarding the stock's future performance, which may lead to increased volatility.
On the insider front, the sale of $26.6 million worth of shares without any buying activity over the past year raises concerns regarding the company's outlook from those who know it best. This insider activity could suggest a lack of confidence among executives about the stock's near-term prospects, which is a critical factor for potential investors to weigh in their decision-making process.
What This Means for InvestorsBased on the analysis, Docusign Inc DOCU is currently undervalued according to GF Value™, which suggests there could be an opportunity for investors to capitalize on its potential growth. However, the high P/E ratio and concerning insider selling indicate that investors should exercise caution and thoroughly assess the risks involved. For further insights, please visit the Docusign Inc (DOCU) stock page and explore the GF Value™ page or the GuruFocus Stock Screener.
Frequently Asked QuestionsWhat is DOCU's GF Score™?
DOCU has a GF Score™ of 78/100, indicating above-average performance across various metrics.
Is DOCU overvalued or undervalued?
DOCU is currently undervalued, with a GF Value™ estimate of $75.85 compared to its trading price of $69.76.
What is DOCU's P/E ratio?
DOCU's P/E ratio is 42.5x, which is significantly above its five-year median of 33.2x, suggesting it is trading at a premium compared to historical valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
, /PRNewswire/ -- Docusign (NASDAQ: DOCU), the leader in Intelligent Agreement Management (IAM), today announced that it has been named a Leader in the IDC MarketScape for Worldwide Integrated Signing Workflow Software Vendor Assessment (Doc #U53014325, August 2026).
The Docusign IAM platform unifies and automates every stage of the agreement lifecycle from intake and contract creation to identity verification, e-signature, and ongoing management of executed agreements. With AI built for agreements, Docusign helps organizations understand what's in their contracts and act on those insights, helping over 1.9 million businesses worldwide accelerate deals, reduce risk, and maximize productivity.
According to the IDC MarketScape, "The IAM platform represents Docusign's effort to extend the product beyond transactional signing into agreement lifecycle management, supported by AI-based contract analysis and workflow orchestration." It also says, "Docusign is a relevant option for organizations that weigh broad market recognition, a large pre-built integration library, and access to a platform spanning eSignature and agreement lifecycle management."
"Docusign's new platform evolution, framed as Intelligent Agreement Management, reflects how AI-powered contract management is reshaping enterprise workflows," said Andrew Gens, research analyst for AI software at IDC. "This MarketScape identified how Docusign's ecosystem and AI and automation investments are core enablers for their customers to unlock high value data trapped within contracts."
"We believe being named a Leader in this IDC MarketScape is strong validation for our Intelligent Agreement Management vision," said Allan Thygesen, CEO of Docusign. "Agreements are the foundation of business, yet traditional processes leave valuable data locked inside static files. Our IAM platform empowers organizations to turn agreement friction into business results, delivering tangible ROI and efficiency across teams like legal, sales, procurement, and HR."
Among Docusign's key strengths, the IDC MarketScape cited breadth of the agreement lifecycle platform as well as its scale, contract AI, and ecosystem depth:
Scale and ecosystem depth: Docusign's broad installed base and library of over 1,000 prebuilt integrations affect enterprise procurement in practical terms. Internal stakeholders and counterparties are often already familiar with the platform, and integration into systems such as Salesforce, SAP, Microsoft, Google, and Coupa is well documented and broadly supported by systems integrator partners. Breadth of the agreement life-cycle platform: Docusign has extended its platform to cover pre-execution and post-execution agreement management, AI-assisted contract analysis, and automated workflow orchestration. For organizations that want to consolidate agreement creation, signing, and life-cycle management under one vendor rather than assembling separate tools, this functional breadth can cover most of that scope directly. A complimentary copy of the IDC MarketScape for Worldwide Integrated Signing Workflow Software 2026 Vendor Assessment excerpt is available here. To learn more about Docusign IAM, visit our website.
This recognition comes alongside other recent honors including Docusign being named one of Newsweek's Most Trustworthy Software and Telecommunications companies in America for three years in a row and featured in Fast Company's World's Most Innovative Companies list of 2026 and Fortune's Future 50 list of companies with the greatest long-term growth prospects.
Docusign recently announced the general availability of its Model Context Protocol (MCP) Server, extending agreement intelligence to any AI agent through a single, open interface. During the latest earnings call, Docusign disclosed strong customer growth, accelerating to over 1.9 million customers for its second fiscal quarter (ended July 31, 2026).
About IDC MarketScape
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the circles. Vendor year-over-year growth rate relative to the given market is indicated by a plus, neutral or minus next to the vendor name.
About Docusign
Docusign brings agreements to life. Over 1.9 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using Docusign's AInative IAM platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and CLM. Learn more at www.docusign.com.
Media Contact:
Docusign Corporate Communications
[email protected]
When a mid-sized enterprise needs to close a contract, it often turns to DocuSign (DOCU -0.23%). The company dominates the e-signature landscape, but it is currently racing to rebrand itself as a broader platform for agreement management.
With its stock trading at roughly $65.08 per share, the company has seen a bumpy 12 months, with the stock price falling 17% while broader markets climbed. The core question for shareholders is whether this veteran provider can successfully trade its niche status for a more central role in the age of AI.
Our proprietary Hidden Gems scoring system assigns DocuSign an overall Superscore of 76 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation.
It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39). A 76 places the company in the Top ~18% of every company we score. This article pairs the reasons the score is high with the risks that keep it from climbing higher, serving as a data-driven input for your own deeper investigation.
IMAGE SOURCE: GETTY IMAGES.
Why DOCU Has a 76 SuperscoreDominant market position: The company maintains a massive, entrenched user base of 1.8 million customers that creates high switching costs, as its software is deeply embedded in critical business workflows.Proven platform transition: Management has successfully launched its Intelligent Agreement Management (IAM) platform, which grew to represent 15% of total annual recurring revenue by the end of July 2026.Strong cash generation: The company converted its market leadership into cold, hard cash, generating $296 million in free cash flow during the most recent quarter.Disciplined capital allocation: Leadership has prioritized returning capital to shareholders, executing over $300 million in share repurchases during the second quarter of fiscal 2027 alone.High gross margins: Subscription-based software economics allow the company to maintain stable gross margins near 80%, providing a consistent cushion to fund ongoing AI-driven product innovation.Why Is DOCU's Superscore Not Higher?Maturing core market: Revenue growth has decelerated to 9% year over year, reflecting the reality that the company has largely saturated its primary e-signature use cases.Significant execution risk: The pivot toward Intelligent Agreement Management is still in early stages, and there is no guarantee that customers will adopt these newer, AI-integrated features at the scale required to move the needle.Stiff competitive pressure: The company faces ongoing threats from large-scale cloud incumbents who can bundle similar document-management features into their existing, cheaper enterprise suites.Valuation realities: The stock trades at a trailing P/E of 37.72, which leaves little margin for error if sales execution stumbles or revenue growth fails to accelerate from current single-digit levels.DocuSign earns a high rank for capital efficiency, meaning it generates significant profit relative to its minimal base of hard tangible assets. For an investor, this efficiency means that every point of successful revenue growth is more likely to drop to the bottom line than it would be at a more asset-heavy industrial firm. This structural advantage helps justify why the market is willing to pay a premium for the company's earnings, though this efficiency cannot entirely mask the competitive risks the company faces.
Hidden Gems Database Scores at a GlanceScoreScore (out of 100)RankSupporting Data PointProduct (1Y)76Top ~27%The company successfully transitioned its product roadmap toward AI-driven Intelligent Agreement Management.Product (5Y)69Top ~33%The 5-year period saw growth volatility as the business normalized post-pandemic and restructured.Financial (1Y)76Top ~19%Fiscal 2026 demonstrated strong operational maturity with 9.6% net profit margins.Financial (5Y)69Top ~24%The company shifted from a loss-making pandemic beneficiary to a disciplined, cash-generative software leader.Leaders61Bottom ~35%Management displays transparency in reporting metrics but faces skepticism over its promotional AI narrative.AI39Top ~25%The strategy currently relies on bolting AI features onto legacy workflows rather than a native rebuild.Valuation Risk73Top ~13%The company trades at a trailing P/E of 37.72, reflecting its profitable, cash-generative status.Is DOCU Right For Your Portfolio?This stock warrants a closer look if...
You are looking for the best mid-cap tech stocks that have already achieved consistent profitability and strong cash flow.You believe that intelligent contract automation will become a permanent, high-value requirement for global enterprises over the next several years.You may want to keep researching before buying if...
You are concerned that core e-signature products are becoming commoditized by massive, low-cost tech platforms.You prefer companies with double-digit revenue growth and believe the current single-digit pace indicates a long-term loss of momentum.The Superscore is one data-driven signal for your research process, not a recommendation to buy or sell. Always weigh this data against your personal financial goals and risk tolerance before making a final investment decision.
My 5-year prediction for DOCU stockDocuSign stock was hit hard earlier in 2026 by the "Saaspocalypse," falling to a 52-week low of $40.16 in February. Wall Street's fears of disruption by artificial intelligence caused a widespread sell-off in subscription software businesses, including DocuSign. Since then, the company has proven it not only remains resilient, but that it's embracing AI to evolve its offerings.
Its IAM solution is the galvanizing force to seeing the company's share price rise. That's because customer adoption is growing rapidly. In DocuSign's 2025 fiscal year, ended Jan. 31, IAM represented just 2.3% of total annual recurring revenue (ARR). In fiscal 2026, that percentage jumped to 10.8%, and in fiscal 2027, DocuSign forecasted IAM to increase to 18.5% of total ARR.
IAM's strength is that it expands DocuSign's role from an e-signature tool to automation of the entire agreement management process. The tech's AI agents take a fragmented workflow, disconnected tools and underutilized data, and streamlines it, ensuring deadlines are met and surfacing up reports to deliver insights. This can provide more of a competitive moat for the company.
AI isn't the only growth driver. DocuSign experienced 17% year-over-year revenue growth in its international business during the fiscal second quarter ended July 31. International sales now comprise 31% of revenue.
The company has consistently delivered about 8% year-over-year sales growth over the past two fiscal years, and projects about 9% for fiscal 2027. The trend demonstrates it remains a go-to solution for digital document signing, but it's not a high-growth tech stock. So as long as your expectations are tempered, DocuSign is positioned to deliver solid business expansion over the long haul.
The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.
Peter Solvik, Director of Docusign, Inc. (DOCU -0.23%), reported a sale of 46,000 shares of common stock in a Sept. 11, 2026, SEC Form 4 filing.
Transaction summaryTransaction value$3.0 millionShares sold (indirectly held)46,000Post-transaction shares (directly held)10,066Post-transaction shares (indirectly held)146,272Post-transaction value$10.29 millionTransaction value based on SEC Form 4 weighted average sale price ($65.24); post-transaction value based on Sept. 10, 2026, market close ($65.80).
Key questionsWhat was the composition of the indirect entities involved in this disposal?
The 46,000 shares were liquidated from an indirect holding base that, following the transaction, consists of 90,253 shares held by a trust, 49,558 shares in children's trusts, 6,458 shares held by a spouse, and three shares held by a family partnership.How does the execution price compare to recent market levels?
The weighted average execution price of $65.24 was established while the stock was priced at $65.65 as of the Sept. 11, 2026, market close.What is the insider's remaining equity exposure following this sale?
Solvik retains a total beneficial interest of 156,338 shares, which represents approximately 0.0819% of the software company's $12.4 billion market capitalization.How has the equity performed leading up to this transaction?
The shares were priced at a level representing a one-year return of -17% as of the Sept. 10, 2026, transaction date.Company OverviewMetricValueShare Price (as of market close 2026-09-11)$65.65Market Capitalization$12.4 billionRevenue (TTM)$3.4 billionNet Income (TTM)$329.9 millionCompany SnapshotDocusign provides a comprehensive digital agreement management platform, with core offerings including electronic signature software, Contract Lifecycle Management (CLM) solutions, and agreement workflow tools that enable businesses to digitally prepare, execute, finalize, and manage various agreements.The company generates revenue through a subscription-based software-as-a-service (SaaS) model, leveraging its platform to serve enterprises and mid-market organizations seeking to digitize and automate their agreement processes across multiple business functions.Docusign's primary customer base consists of enterprises and mid-market businesses across diverse industries that require digital agreement management capabilities, with particular strength among organizations prioritizing operational efficiency and digital transformation initiatives.Docusign operates as a global leader in the digital agreement management software sector, serving over 7,000 employees across its San Francisco headquarters and international operations. The company has established a dominant market position through its integrated platform approach, combining e-signature functionality with advanced contract lifecycle management capabilities. With TTM revenue of $3.4 billion and net income of $329.9 million, Docusign demonstrates substantial scale and profitability within the enterprise software market, though recent market performance reflects sectorwide valuation adjustments.
What this transaction means for investorsPeter Solvik's sale of Docusign shares is one that may catch investors' attention. He sold about 23% of his holdings in the Sept. 10 transaction. Although it was described as a "liquidity event," it might be enough to spark concerns over the investment case of the SaaS stock.
Still, Solvik may have had good reason to hold on to his remaining shares. As previously mentioned, Docusign stock has fallen by 17% over the last year, though it has risen by more than 60% from its 52-week low.
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Moreover, revenue has increased by 9% yearly, indicating that growth continues despite concerns about AI replacing SaaS companies.
Additionally, Docusign earned $156 million in the first half of the year. That is an encouraging sign since, due to its growth, a P/E ratio of around 40 is on track to give way to a forward earnings multiple of 14. Thus, with growth continuing and the stock looking increasingly inexpensive, it likely pays for Solvik to hold his remaining Docusign shares.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool has a disclosure policy.
Amundi cut its stake in shares of Docusign Inc. (NASDAQ:DOCU – Free Report) by 34.9% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 674,423 shares of the company’s stock after selling 362,234 shares during the period. Amundi owned approximately 0.35% of Docusign worth $29,958,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently made changes to their positions in DOCU. Modus Advisors LLC purchased a new stake in shares of Docusign during the 4th quarter worth about $27,000. Cary Street Partners Investment Advisory LLC increased its stake in shares of Docusign by 309.5% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 561 shares of the company’s stock worth $38,000 after purchasing an additional 424 shares during the last quarter. Basepoint Wealth LLC bought a new position in shares of Docusign during the 4th quarter valued at $39,000. WealthCollab LLC raised its holdings in shares of Docusign by 372.4% during the 1st quarter. WealthCollab LLC now owns 855 shares of the company’s stock valued at $41,000 after purchasing an additional 674 shares in the last quarter. Finally, Virtus Advisers LLC acquired a new stake in shares of Docusign in the second quarter worth about $47,000. 77.64% of the stock is currently owned by institutional investors and hedge funds.
Trending Headlines about Docusign Here are the key news stories impacting Docusign this week:
Positive Sentiment: Docusign reported quarterly earnings and revenue above analyst estimates, while revenue grew 9.4% year over year. Management also highlighted margin gains, stronger cash flow and continued IAM adoption. Docusign Declines After Beating Q2 Earnings and Revenue Estimates Positive Sentiment: The IAM platform now represents 15.1% of annual recurring revenue, suggesting Docusign is using AI to expand beyond traditional electronic signatures and potentially increase customer value. Docusign Q2 2027 Earnings Call Transcript Positive Sentiment: Docusign and Stephen Curry’s UNDERRATED Golf announced a “Where Deals Get Done” partnership. The marketing agreement may support brand visibility, although its direct financial impact was not disclosed. Stephen Curry’s UNDERRATED Golf and Docusign Partnership Neutral Sentiment: Reported short interest was zero shares, indicating little evidence of an active short-selling position or near-term short-squeeze potential. Negative Sentiment: DOCU declined despite the earnings and revenue beat, suggesting investors may have already priced in the strong results or remain cautious about the pace of IAM adoption and future growth. Docusign Declines After Earnings Beat Negative Sentiment: Director Peter Solvik sold 46,000 shares worth approximately $3.0 million, reducing his holdings by 48.14%. Director Teresa Briggs also sold shares, though her transaction was executed under a pre-arranged Rule 10b5-1 plan. These sales can weigh on sentiment, even though they do not necessarily signal deteriorating fundamentals. Wall Street Analysts Forecast Growth DOCU has been the subject of several recent analyst reports. Piper Sandler increased their target price on Docusign from $52.00 to $75.00 and gave the company a “neutral” rating in a research note on Friday, September 4th. Jefferies Financial Group increased their price target on shares of Docusign from $45.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday, June 5th. Weiss Ratings upgraded shares of Docusign from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 25th. Bank of America lifted their price objective on Docusign from $58.00 to $64.00 and gave the company an “underperform” rating in a report on Friday, September 4th. Finally, Wells Fargo & Company upped their price target on Docusign from $55.00 to $60.00 and gave the company an “equal weight” rating in a research report on Friday, September 4th. Three investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $67.33. Get Our Latest Analysis on Docusign
Docusign Stock Performance Shares of NASDAQ DOCU opened at $65.65 on Friday. Docusign Inc. has a 52 week low of $40.16 and a 52 week high of $86.65. The stock has a 50 day moving average price of $57.75 and a 200 day moving average price of $50.61. The stock has a market capitalization of $12.27 billion, a PE ratio of 40.03, a price-to-earnings-growth ratio of 2.48 and a beta of 0.90.
Docusign (NASDAQ:DOCU – Get Free Report) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.16 EPS for the quarter, beating the consensus estimate of $1.09 by $0.07. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The business had revenue of $875.75 million for the quarter, compared to the consensus estimate of $867.22 million. During the same period in the prior year, the company posted $0.30 earnings per share. Docusign’s revenue was up 9.4% compared to the same quarter last year. As a group, research analysts forecast that Docusign Inc. will post 2.1 EPS for the current year.
Insider Buying and Selling In other Docusign news, Director James A. Beer sold 450 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $64.02, for a total value of $28,809.00. Following the completion of the sale, the director directly owned 14,586 shares of the company’s stock, valued at approximately $933,795.72. This represents a 2.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Blake Grayson sold 15,000 shares of the firm’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $65.57, for a total value of $983,550.00. Following the completion of the sale, the chief financial officer directly owned 81,429 shares of the company’s stock, valued at $5,339,299.53. This represents a 15.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 182,150 shares of company stock worth $10,443,740. Corporate insiders own 0.59% of the company’s stock.
Docusign Company Profile (Free Report)
DocuSign, Inc is a provider of digital agreement management and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping businesses replace paper-based contracting processes with digital workflows.
The company’s products and services include DocuSign eSignature, which supports electronic signing and authentication, as well as tools for contract lifecycle management, agreement preparation, identity verification, notarial services and workflow automation.
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Stock to Watch: DocuSign (DOCU - Free Report) Docusign, Inc., founded in 2003 and headquartered in San Francisco, is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
DOCU is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. DOCU has a Growth Style Score of A, forecasting year-over-year earnings growth of 19.3% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.04 to $4.58 per share. DOCU also boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DOCU should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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Stock to Watch: DocuSign (DOCU - Free Report) Docusign, Inc., founded in 2003 and headquartered in San Francisco, is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
DOCU is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. DOCU has a Momentum Style Score of A, and shares are up 10.9% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $4.57 per share. DOCU also boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DOCU should be on investors' short list.
Key Takeaways Docusign posted Q2 adjusted EPS of $1.16, up 26.1%, while revenues rose 9.4% to $875.7 million.IAM reached 15.1% of Docusign's total ARR, up from 12.6% in the first quarter.Docusign raised its fiscal 2027 revenue outlook and expects ARR growth of 8.5-9%. Docusign, Inc. (DOCU - Free Report) reported impressive second-quarter fiscal 2027 results, with both earnings and revenues beating the Zacks Consensus Estimate.
However, the better-than-expected results failed to impress the market, as the stock has edged down 2.3% since the earnings release on Sept. 3.
DOCU reported second-quarter fiscal 2027 adjusted earnings of $1.16 per share, which increased 26.1% year over year and surpassed the Zacks Consensus Estimate of $1.08. Revenues increased 9.4% to $875.7 million and beat the consensus mark of $867.6 million by 0.9%.
The quarter benefited from rising Intelligent Agreement Management (IAM) adoption and stronger operating leverage. IAM accounted for 15.1% of total annual recurring revenue (ARR), up from 12.6% in the first quarter.
DOCU Sees IAM Become a Bigger ARR DriverIAM remained central to Docusign's growth strategy. Customers have ingested more than 300 million documents through Agreement Manager, while cumulative active accounts using the company's Model Context Protocol server more than quadrupled during the quarter.
Docusign also launched AI assistant and agentic capabilities for contract analysis, redlining and workflow automation. Management said the AI assistant cut the time needed in user testing to summarize, review and finalize agreements such as nondisclosure agreements by half. The company also expanded IAM integrations across Slack, Perplexity and Google Cloud's Gemini Enterprise for Legal.
Management said most IAM ARR is being generated from Docusign's existing installed base. Customers moving from e-signature to IAM are also providing meaningful expansion opportunities as the platform adds broader agreement-management capabilities.
Docusign Posts Broad Customer MomentumTotal customers increased nearly 10% year over year to more than 1.9 million, driven partly by the digital channel. Dollar net retention among direct customers was 103%, improving modestly from both the prior quarter and year-ago period as expansion contributed more to retention gains.
The number of customers spending more than $300,000 in annual contract value rose 14% to nearly 1,300. International operations accounted for 31% of revenues. Reported revenue growth included a 1.3-percentage-point foreign-exchange benefit. Excluding currency and the prior-year impact of digital add-ons, management said revenue growth accelerated by nearly 1 percentage point.
DOCU Expands Margins Through Cost DisciplineNon-GAAP operating income rose 15.9% year over year to $276.8 million. Non-GAAP operating margin expanded 180 basis points to 31.6%, exceeding the midpoint of management's guidance by 160 basis points. Roughly half of the outperformance came from stronger revenues, with the remainder reflecting operating-cost discipline and higher capitalized software costs.
Non-GAAP gross margin slipped 30 basis points to 81.7% as the ongoing cloud migration weighed on profitability. Docusign ended the quarter with 7,137 employees, up 3% year over year, with all year-over-year headcount growth coming from lower-cost locations. Stock-based compensation declined to 17% of revenues, down 3 percentage points.
Docusign Converts Profit Growth Into CashNet cash provided by operating activities increased to $334.5 million from $246.1 million a year ago. Free cash flow climbed 35.9% to $295.8 million, while free cash flow margin improved to 34% from 27%, supported by operating leverage and working-capital gains.
Cash, cash equivalents and investments totaled $973.1 million at quarter-end, and Docusign had no debt. The company repurchased $306.5 million of stock during the quarter, helping reduce diluted shares outstanding by 8% year over year to 193 million. It retained $2.1 billion under its share repurchase authorization.
DOCU Raises Fiscal 2027 OutlookFor the third quarter, Docusign expects revenues of $886-$890 million, representing 9% year-over-year growth at the midpoint and including a 1-percentage-point foreign-exchange tailwind. The current Zacks Consensus Estimate for revenues is pinned at $886.8 million.
Non-GAAP gross margin is projected to be in the range of 81.5-81.9%, while non-GAAP operating margin is expected to be between 31.3% and 31.7%.
For fiscal 2027, revenues are now expected to be between $3.499 billion and $3.507 billion, with 9% growth at the midpoint. The current consensus estimate for revenues is pegged at $3.5 billion.
ARR growth is projected to be in the range of 8.5-9% compared with 8% in fiscal 2026. Management expects IAM to account for 18-19% of total ARR exiting the fourth quarter. Full-year non-GAAP operating margin is forecast at 31-31.5%, while non-GAAP gross margin is expected at 81.5-82%.
Currently, Docusign carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings SnapshotVerisk (VRSK - Free Report) reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter.
Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year.
CPAY reported adjusted earnings per share of $7, rising 36% year over year and surpassing the Zacks Consensus Estimate of $6.60 by 6.1%. Revenues increased 21% to $1.33 billion, beating the consensus mark by 2.6%.
DocuSign (DOCU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this provider of electronic signature technology have returned +10.9%, compared to the Zacks S&P 500 composite's -1.4% change. During this period, the Zacks Internet - Software industry, which DocuSign falls in, has gained 3.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, DocuSign is expected to post earnings of $1.16 per share, indicating a change of +14.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.57 points to a change of +19% from the prior year. Over the last 30 days, this estimate has changed +2.1%.
For the next fiscal year, the consensus earnings estimate of $5.18 indicates a change of +13.3% from what DocuSign is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, DocuSign is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For DocuSign, the consensus sales estimate for the current quarter of $887.84 million indicates a year-over-year change of +8.5%. For the current and next fiscal years, $3.5 billion and $3.78 billion estimates indicate +8.7% and +8% changes, respectively.
Last Reported Results and Surprise HistoryDocuSign reported revenues of $875.75 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $1.16 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $867.57 million, the reported revenues represent a surprise of +0.94%. The EPS surprise was +7.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
DocuSign is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about DocuSign. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Blake Jeffrey Grayson, Chief Financial Officer of DocuSign, Inc. (DOCU -1.13%), sold 45,000 shares of common stock between September 4, 2026 and September 8, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold45,000Transaction value$3.1 millionPost-transaction shares (directly held)81,429Post-transaction value$5.30 millionTransaction value based on SEC Form 4 weighted average sale price ($68.52); post-transaction value based on September 08, 2026 market close ($65.08).
Key questionsWhat was the nature of this disposition?
The executive utilized a Rule 10b5-1 trading plan to facilitate the sale of 30,000 shares, a mechanism that establishes pre-set parameters for trading to avoid conflicts regarding the use of material non-public information.How does the execution price compare to recent market valuation?
The shares were sold at a weighted average price of $68.52, while the stock was priced at $65.08 as of the September 8, 2026 market close, representing a one-year total return of -20% as of the transaction date.What is the executive's remaining ownership stake in the company?
Following the sale, the Chief Financial Officer retains direct ownership of 81,429 shares, which accounts for an approximate 0.0426% stake in the firm.Company OverviewMetricValueShare Price (as of market close 2026-09-08)$65.08Market Capitalization$12.5 billionRevenue (TTM)$3.4 billionNet Income (TTM)$329.9 millionCompany SnapshotDocuSign provides a comprehensive digital agreement management platform, with core revenue derived from its electronic signature solution and complementary offerings including Contract Lifecycle Management (CLM) and agreement workflow automation tools.The company operates a SaaS-based business model, generating recurring revenue through subscription licenses and usage-based pricing, enabling enterprises to digitally prepare, execute, finalize, and manage agreements at scale.DocuSign serves a broad customer base spanning mid-market and enterprise organizations across multiple verticals, with particular strength in financial services, legal, healthcare, and technology sectors seeking to streamline agreement processes.DocuSign is a global leader in digital agreement management, serving thousands of enterprise customers across the United States and internationally. The company has established a dominant competitive position in the e-signature market through its integrated platform approach, combining core electronic signature capabilities with advanced CLM and workflow automation features.
DocuSign's strategic focus on expanding its agreement cloud ecosystem positions it to capture growing demand for digital transformation in contract and document management processes.
What this transaction means for investorsCFO Blake Grayson's Sept. 4 sale of 30,000 DocuSign shares was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan. This indicates the move was part of a structured portfolio management strategy.
He performed a second disposition involving 15,000 shares on Sept. 8, which was not part of his Rule 10b5-1 trading plan. Consequently, the subsequent sale was discretionary, and combined with his Sept. 4 disposal, resulted in a substantial 36% reduction in his direct holdings. This does not instill investors with confidence as the sale comes after the stock has dropped about 20% over the past 12 months.
DocuSign shares are down due to concerns the company may be at risk of losing business in the face of the artificial intelligence boom. In its fiscal second quarter, ended July 31, the company reported revenue of $875.7 million, representing a 9% year-over-year increase. While the sales expansion was solid, it was not at the level of a high-growth tech stock.
Robert Izquierdo has positions in Docusign. The Motley Fool has positions in and recommends Docusign. The Motley Fool has a disclosure policy.
The great fear hanging over so many established software firms this year has been that the AI revolution will pass them by, or worse, sweep them aside. Docusign Inc. NASDAQ: DOCU, long the dominant name in electronic signatures, has faced exactly that suspicion, with the bears wondering whether a company built on signing documents online can stay relevant in an age of agentic AI.
In recent weeks, however, investors have grown notably more optimistic, both for traditional software stocks in general and Docusign in particular. Heading into its Q2 fiscal year (FY2027) report, Docusign shares had already rallied more than 60%, and the numbers did nothing to dent the enthusiasm. The stock initially moved higher after the release, putting it within reach of its highest levels since late last year.
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Like with so many of its peers, the market has been keen to see if Docusign can reinvent itself around AI, rather than be eaten up by it. On the evidence of this past quarter, at least, the answer is clear.
Docusign’s Beat Gives the Turnaround More CredibilityStarting with the headline numbers, they gave the bulls plenty to cheer about. Docusign comfortably beat analyst expectations on both revenue and profit, with sales up more than 9% year over year and margins ahead of forecasts, too. For a company whose growth prospects some had written off, that was a solid statement.
Adding to the bullish overtones was the company’s own confidence in its outlook. Management raised forward guidance for the full year, nudging up its expectations for both revenue and, crucially, the growth of its recurring revenue base.
Underpinning it all was healthy customer growth, which hit a record high above 1.9 million - not exactly the kind of trend you’d expect from a company consigned to the dustheap. Instead, it was the kind of report that quietly rebuilds the whole investment case.
IAM Adoption Becomes the Real StoryBeyond the headline numbers and shiny metrics, however, the real story lies in how Docusign is answering the AI question head-on. Rather than treating the technology as a threat, the company is weaving it through a broader platform it calls Intelligent Agreement Management, or IAM, designed to handle the entire life of a contract rather than just the signature at the end.
The evidence that this is working is compelling. IAM now accounts for more than 15% of the company's recurring revenue, up sharply from the prior quarter, and management expects that share to climb toward 19% by the end of the financial year. That steady march is the clearest sign yet that customers are buying into the vision, not just listening to the sales pitch.
Docusign is also building AI-powered tools that let customers create and deploy their own automated agents, and knitting its platform together with the major AI providers and workplace apps. The aim is to make its software a deeply embedded hub for managing agreements, far harder to rip out than a simple signing tool, and its best defense against being commoditized.
Why the Bears Still Have an ArgumentStill, for all that progress, the bears are hanging onto some legitimate concerns, and the central one is conversion. Impressive as IAM adoption is, the company's overall growth remains fairly moderate, with revenue still expanding at single-digit rates since 2023. That puts the onus on management to ensure this AI-related momentum translates into meaningfully faster growth, not just a nicer product.
Then there is the ever-present competitive threat. Basic electronic signing is one of the more straightforward tasks that could easily and cheaply be replaced by a homegrown AI tool or a nimbler, lower-cost rival. That means Docusign has to work far harder to defend its turf than an entrenched platform like Salesforce NYSE: CRM, whose sprawling web of customer data, workflows, and integrations makes it enormously difficult to rip out. This is precisely why the ongoing shift toward the stickier, more sophisticated IAM platform matters so much.
AI Turnaround, or Just a Better Quarter?Docusign Stock Forecast Today12-Month Stock Price Forecast:
$67.33
3.46% Upside
Hold
Based on 18 Analyst Ratings
Current Price$65.08High Forecast$86.00Average Forecast$67.33Low Forecast$50.00Docusign Stock Forecast Details
So which is it: a real AI success story, or a stay of execution? The weight of this quarter's evidence tilts firmly toward the former. Docusign isn't merely surviving the arrival of AI; it’s using the technology to transform itself from a one-trick signing service into something altogether more valuable.
That being said, the caveats are real. The conversion of that adoption into faster company-wide growth remains unproven, and until the company is reporting revenue growth that is consistently accelerating, the jury is still out. The recent rally in Docusign shares also suggests much of the upside is already baked into the price, leaving little margin for disappointment. In other words, the company's turnaround is seeing a ton of progress, but it is not yet finished.
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When the COVID-19 pandemic triggered widespread lockdowns and social restrictions in 2020, businesses turned to Docusign (DOCU -4.87%) to help them remotely draft, negotiate, and close commercial agreements. The soaring demand for its platform drove its stock to a record high of $310 in late 2021, a whopping tenfold increase from its initial public offering (IPO) price of $29 just three years earlier.
But Docusign suffered a sharp slowdown in demand for its platform when social conditions mostly returned to normal in 2022, and its sales growth has been sluggish ever since. As a result, its stock is down 78% from its peak, closing at $68.41 last Friday, Sept. 4.
But this might be a great long-term opportunity for investors, because Docusign's new Intelligent Agreement Management (IAM) platform could be the key to turning its fortunes around. It uses artificial intelligence (AI) to transform contract management processes for businesses, and it's proving to be very popular with customers.
Image source: Getty Images.
The IAM platform continues to expand Docusign says around 65% of organizations still use four or more tools to manage their agreement workflows, creating friction and significant inefficiencies. In 2024, global consulting firm Deloitte found that businesses were collectively wasting around 55 billion hours per year due to poor contract management processes, resulting in $2 trillion in lost economic value. IAM was designed to help them recover some of that time and money.
IAM features a unique digital repository called Agreement Manager, where businesses have collectively stored over 300 million contracts. It uses AI to extract valuable information from each document and make it discoverable via a search function, so managers can quickly find expiry dates to get ahead of sales agreements that are about to lapse, or stop auto-renewals for contracts they no longer need.
In August, Docusign expanded IAM significantly with a series of new features. There is now an AI assistant powered by the company's AI engine, Iris, which stands ready to answer questions about any contract within the organization's ecosystem. Then there is Agent Studio, which allows businesses to build custom AI agents to help draft, negotiate, and close agreements.
IAM launched in 2024, so it's still a relatively new platform. Around 40,000 of Docusign's 1.9 million paying customers have adopted it so far, leaving significant room for growth.
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Steady growth in revenue and profits Docusign generated $875.7 million in revenue during its fiscal 2027 second quarter (ended July 31), topping management's forecast of $865 million to $869 million. It represented a modest 9% increase over the year-ago period, so the company isn't growing at a lightning-fast pace right now.
However, management is deliberately sacrificing some top-line growth to focus on profitability, resulting in a more sustainable business over the long term. While Docusign's revenue increased by 9% during the second quarter, its total operating expenses grew by just 2%, allowing more money to flow to the bottom line. This resulted in a 23% increase in the company's generally accepted accounting principles (GAAP) net income, which came in at $77.7 million.
Docusign delivered an even higher net income of $224.4 million on an adjusted (non-GAAP) basis, which excluded one-off and non-cash expenses. But investors shouldn't automatically dismiss items like the company's $148.6 million in stock-based compensation just because it's a non-cash expense. Whenever new shares are issued to employees as part of their compensation package, it dilutes the value of every existing share in circulation, which is a drag on investors' potential returns.
Docusign's valuation leaves room for upside Docusign stock is currently trading at a price-to-sales (P/S) ratio of 4.1, which is a steep discount to its average of 11.8 since the company went public in 2018.
DOCU PS Ratio data by YCharts
I think Docusign stock looks attractively valued right now, particularly because IAM has the potential to reignite the company's top-line growth. Management is forecasting $3.55 billion in total annual recurring revenue (ARR) by the end of fiscal 2027, with around 18.5% expected to come from IAM alone. At the end of fiscal 2025 (roughly 18 months ago), IAM represented just 2.3% of ARR, so adoption is ramping up at an explosive pace.
Therefore, Docusign stock could be a solid buy at the current price, given IAM could soon become a significant part of the business.
Docusign is leveraging AI to drive platform growth, profitability, and free cash flow margins. Product revenue grew 9% year-over-year, with international business expanding at 17% and total customers reaching 1.91 million. Free cash flow surged 36% year-over-year, outpacing revenue growth and supporting positive operating leverage and mid-30% FCF margins.
Docusign (NASDAQ:DOCU) reported second-quarter fiscal 2027 revenue of $876 million, up 9% from a year earlier, as adoption of its Intelligent Agreement Management, or IAM, platform increased and the company expanded its artificial intelligence capabilities and integrations.
Chief Executive Officer Allan Thygesen said IAM accounted for 15.1% of total annual recurring revenue, or ARR, at the end of the quarter, up from 12.6% in the first quarter. The company raised its full-year ARR growth outlook to a range of 8.5% to 9.0%, compared with 8.0% growth in fiscal 2026, and expects IAM to account for 18% to 19% of total ARR exiting the fourth quarter.
“Our platform strategy is working,” Thygesen said, citing increased IAM adoption, continued product development and the company’s ability to maintain margins while expanding AI-driven functionality. Financial Results and Capital Returns Docusign’s second-quarter revenue included a 1.3 percentage-point benefit from foreign exchange rates. International revenue represented 31% of the total. Chief Financial Officer Blake Grayson said that, after adjusting for foreign exchange and the prior-year contribution from digital add-ons, revenue growth accelerated by nearly one percentage point year over year.
Non-GAAP operating income rose 16% year over year to $277 million. The company reported a non-GAAP operating margin of 31.6%, up 180 basis points from the prior-year period and above the midpoint of its guidance range. Non-GAAP diluted earnings per share increased 26% to $1.16, while GAAP diluted earnings per share rose 33% to $0.40.
Free cash flow was $296 million, up more than 35% from the prior-year quarter and equal to a 34% margin. Over the trailing 12 months, Docusign generated $1.2 billion in free cash flow, according to Grayson.
The company ended the quarter with just under $1 billion in cash equivalents and investments and no debt. It repurchased $307 million of stock during the quarter, reducing total diluted shares outstanding by 8% year over year to 193 million. Docusign had $2.1 billion remaining under its share-repurchase authorization.
Non-GAAP gross margin was 81.7%, slightly below the prior-year level due to the company’s cloud migration investments. Docusign said the migration remains on track to be largely completed by the end of fiscal 2027 and expects full-year gross margin to decline slightly year over year.
IAM Adoption and AI Product Expansion Thygesen said customers had ingested more than 300 million documents through IAM Agreement Manager. He said the platform’s AI-native architecture allows Docusign to process workloads at lower marginal costs than products that route work to external large language models.
During August, the company introduced an AI assistant and agentic capabilities for contract analysis, redlining and workflow automation. The release included pre-built agents for document intake and vendor renewals, along with an Agent Studio intended to let customers develop and govern custom agents for uses such as compliance auditing, business playbooks and vendor-pricing evaluation.
In user testing, Thygesen said the AI assistant reduced the time required to summarize, review and finalize agreements such as nondisclosure agreements by roughly half.
Docusign also continued expanding IAM into third-party tools. The company announced general availability of a Docusign app for Slack in June, integrations with Perplexity and Google Cloud’s Gemini Enterprise for Legal, and existing connectors with Anthropic, Gemini, OpenAI and Microsoft Copilot. Cumulative active accounts using Docusign’s Model Context Protocol, or MCP, capabilities more than quadrupled during the quarter, Thygesen said. The company expects its MCP server to become generally available by the end of the month.
Thygesen told analysts that customers need an IAM license to use the connectors, with the company’s existing credit model applying to those calls. While he described the integrations as a potentially important future distribution and discovery channel, he said it remains early for customers to find Docusign through those platforms.
Customer Trends and Enterprise Activity Docusign ended the quarter with more than 1.9 million customers, representing nearly 10% year-over-year growth. Grayson said digital-channel activity helped drive the increase, while envelope sending and contract utilization also increased year over year.
Dollar net retention among direct customers was 103% on a rounded basis, improving modestly from both the prior quarter and prior year. Grayson said retention gains had historically been the largest contributor to improvement, but expansion is beginning to play a larger role.
The number of customers with more than $300,000 in annual contract value rose 14% year over year to nearly 1,300. Thygesen said IAM was the main source of expansion and larger deal activity, though the company also continued to see large eSignature transactions. He said Docusign recorded its largest U.S. public-sector deal and its largest Latin America deal during the quarter.
Management cited deployments by Salesforce, Oppenheimer, SailPoint, Upstart, Optimizely and HydroCorp. HydroCorp, which integrated IAM for sales with Salesforce, reduced the time needed to prepare a new contract from two to three hours to 20 minutes, according to Thygesen.
Updated Outlook For the third quarter, Docusign expects revenue of $886 million to $890 million, representing 9% year-over-year growth at the midpoint on an as-reported basis. It forecast non-GAAP gross margin of 81.5% to 81.9% and non-GAAP operating margin of 31.3% to 31.7%.
For fiscal 2027, the company expects revenue of $3.499 billion to $3.507 billion, or 9% growth at the midpoint. The outlook includes an approximately one percentage-point foreign-exchange tailwind, though management said incremental currency headwinds reduced the full-year revenue outlook by about $4 million.
Docusign forecast full-year non-GAAP operating margin of 31.0% to 31.5%. Grayson said the company will continue investing selectively in IAM while managing hiring and using lower-cost locations for its year-over-year headcount growth.
About Docusign (NASDAQ:DOCU) DocuSign, Inc (NASDAQ: DOCU) is a leading provider of electronic signature and digital transaction management solutions. The company’s flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign’s Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.
DocuSign’s platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.
For the quarter ended July 2026, DocuSign (DOCU - Free Report) reported revenue of $875.75 million, up 9.4% over the same period last year. EPS came in at $1.16, compared to $0.92 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $867.57 million, representing a surprise of +0.94%. The company delivered an EPS surprise of +7.41%, with the consensus EPS estimate being $1.08.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how DocuSign performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Customers: 1.9 million versus the two-analyst average estimate of 1.9 million.Enterprise & Commercial Customers: 289 thousand compared to the 289.32 thousand average estimate based on two analysts.Revenue- Professional services and other: $21.79 million versus $18.46 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +34.1% change.Revenue- Subscription: $853.96 million compared to the $848.94 million average estimate based on six analysts. The reported number represents a change of +8.9% year over year.View all Key Company Metrics for DocuSign here>>>
Shares of DocuSign have returned +15.9% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Blake Grayson, CFO of Docusign (DOCU), talks about the company's quarterly earnings beat and the aspects to its software suite that backed momentum. He says the company raised ARR projections due to strengthening existing partnerships adding long-term value.
DocuSign DOCU shares have risen following a robust Q2 (July) earnings report, which showcased positive results while the Q3 (October) and FY27 revenue forecasts were largely in line with expectations. The company is actively transitioning towards its AI-driven Intelligent Agreement Management (IAM) platform, which has seen increased adoption, now accounting for 15.1% of its annual recurring revenue (ARR). Additionally, DOCU has raised its FY27 ARR growth outlook to 8.5-9.0%, up from the previous range of 8.25-8.75%, reflecting management's confidence in ongoing execution despite continued investments in cloud migration.
IAM Adoption: The adoption of IAM has exceeded expectations, with balanced growth across various regions and customer segments. To date, over 300 million documents have been processed through IAM's Agreement Manager, showcasing rising customer engagement and supporting DOCU's goal of becoming the leading agreement management platform. AI and Agents: In August, DOCU introduced new AI capabilities, including AI-driven contract analysis, document intake automation, and Agent Studio for creating custom agents. Early tests indicate that the AI assistant can halve the time needed to summarize, review, and finalize agreements, including NDAs. AI Economics: The AI-native architecture of IAM allows DOCU to process workloads at significantly lower costs compared to traditional solutions reliant on external large language models (LLMs). This efficiency has resulted in a substantial increase in the number of documents ingested in Q2 while maintaining high gross margins, positioning the company favorably as AI usage expands. Capital Returns: DocuSign has capitalized on its lower stock price by repurchasing shares aggressively, spending $307 million in Q2. This strategy has reduced diluted shares by 8% year-over-year to 193 million, with $2.1 billion remaining under its buyback authorization and no debt on its balance sheet. DOCU's Q2 performance underscores the positive momentum of its IAM transformation, with increasing adoption contributing significantly to its recurring revenue. The shift to emphasize ARR over billings provides a clearer picture of its subscription model, and the slight uptick in FY27 ARR guidance signals growing management confidence. However, the key question remains whether the accelerating IAM adoption will lead to sustained revenue growth. While the company's expanding AI capabilities are promising, particularly with a focus on cost-effective AI workloads and strong margins, the ongoing expenses related to cloud migration may pose short-term challenges. The stock's continued positive performance will likely hinge on evidence that IAM adoption is translating into genuine growth rather than merely redistributing existing customer activity.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Docusign Inc (NASDAQ:DOCU) on Thursday posted upbeat financial results for the second quarter of fiscal 2027 and raised its fiscal 2027 revenue outlook.
Docusign posted second-quarter revenue of $875.75 million, beating the consensus estimate of $857.43 million, according to Benzinga Pro. The agreement management company reported adjusted earnings of $1.16 per share for the quarter, beating estimates of $1.09 per share.
Docusign expects third-quarter revenue to be in the range of $886 million to $890 million versus estimates of $888.56 million. The company also raised its fiscal 2027 revenue outlook to $3.499 billion to $3.507 billion, up from $3.49 billion to $3.502 billion, versus estimates of $3.497 billion.
“Docusign is raising its outlook as AI accelerates momentum across the business,” said Allan Thygesen, CEO of Docusign. “We said IAM would be the agreement system of action, and this quarter we delivered. Our AI agents are now securely executing contract workflows end-to-end, and the IAM platform also ingested a record volume of agreements.”
Docusign shares gained 2.5% to trade at $67.59 on Friday.
These analysts made changes to their price targets on Docusign following earnings announcement.
UBS analyst Karl Keirstead maintained the stock with a Neutral and raised the price target from $54 to $70. RBC Capital analyst Rishi Jaluria maintained the stock with a Sector Perform and boosted the price target from $55 to $70. Wells Fargo analyst Michael Turrin maintained the stock with an Equal-Weight rating and raised the price target from $55 to $60. Baird analyst William Power maintained the stock with a Neutral and raised the price target from $55 to $72. B of A Securities analyst Matt Bullock maintained the stock with an Underperform rating and lifted the price target from $58 to $64. Trending
Considering buying DOCU stock? Here’s what analysts think:
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Docusign Inc. (NASDAQ:DOCU) drew bullish commentary from analysts after its fiscal second-quarter results showed accelerating growth in its Intelligent Agreement Management business (IAM), improving retention and stronger-than-expected profitability.
Citizens Sees More UpsideCitizens analyst Patrick Walravens maintained a Market Outperform rating and an $86 price forecast.
The analyst highlighted Docusign’s 9.4% revenue growth, improving net retention, and IAM annual recurring revenue of about $529 million. IAM accounted for 15.1% of total ARR, ahead of Citizens’ $474 million estimate.
Walravens said Docusign is using its dominant e-signature position to become the “agreement layer” across enterprises. He expects IAM ARR to exceed $650 million by the end of fiscal 2027 and account for roughly 18.5% of total ARR.
Citizens also pointed to Docusign’s Iris AI engine, which is trained on more than 300 million private, consented agreements, as a potential competitive advantage.
The firm raised its fiscal 2027 non-GAAP earnings estimate to $4.67 per share from $4.61. It also lifted its fiscal 2028 estimate to $5.22 from $5.12.
RBC Says Valuation Caps UpsideRBC Capital Markets analyst Rishi Jaluria took a more measured view. The firm maintained its Sector Perform rating but raised its price forecast to $70 from $55 following Docusign’s results.
Jaluria said the quarter marked another solid step in Docusign’s transition toward IAM. Revenue reached $875.7 million, up 9% year over year, while non-GAAP earnings came in at $1.16 per share. Both topped consensus estimates.
RBC highlighted improving retention and larger customer deals. Customers generating more than $300,000 in annual contract value rose 14% year over year to 1,296, marking the second straight quarter of double-digit growth.
The firm also sees an opportunity in Docusign’s growing integrations with third-party AI platforms. Its connectors span platforms from OpenAI, Anthropic and Microsoft Copilot to Google Cloud and Perplexity. RBC believes those integrations could eventually become a distribution channel for Docusign.
Still, RBC said the shares appear fully valued. The firm noted that Docusign trades at roughly nine times estimated calendar 2027 free cash flow, limiting potential upside despite improving IAM adoption, retention and deal sizes.
The analysts’ differing ratings reflect a common theme: Docusign’s IAM strategy is gaining traction, but the debate is shifting toward how much of that improvement is already reflected in the stock.
Photo via Shutterstock
DOCU Price Action: Docusign shares were up 3.54% to $68.30 at the time of publication on Friday, according to Benzinga Pro data.
DocuSign Inc (NASDAQ:DOCU) reported second-quarter revenue and profit that beat Wall Street estimates and raised its full-year revenue guidance, as the company's newer AI-driven contract management products continue to gain share of its overall business.
Revenue for the fiscal second quarter came in at $875.7 million, above the $867 million analysts had estimated and up 9% from a year earlier. Adjusted earnings per share of $1.16 topped the $1.09 estimate, a 26% increase year-over-year. Free cash flow reached $295.8 million, well ahead of the $234 million forecast.
The company's Intelligent Agreement Management (IAM) offering accounted for 15.1% of total annual recurring revenue in the quarter.
For fiscal 2027, DocuSign now expects revenue of $3.5 billion to $3.51 billion, roughly in line with the $3.5 billion analyst estimate. The company raised its annual recurring revenue growth outlook to a range of 8.5% to 9% and said it expects IAM to represent approximately 18% to 19% of total ARR by the end of the fourth quarter. Non-GAAP operating margin for the year is now guided at 31% to 31.5%.
For the third quarter, DocuSign guided revenue of $886 million to $890 million, slightly below the $889 million estimate, with non-GAAP operating margin expected between 31.3% and 31.7%.
Other second-quarter metrics included non-GAAP gross margin of 81.7%, down 30 basis points from a year earlier, and net cash from operations of $334.5 million.
Analysts at UBS described the results as another "fine/in-line" quarter, noting constant-currency revenue growth of 8% matched expectations and that the raised full-year guidance was a modest step up rather than a re-rating catalyst. The bank said DocuSign's IAM push has yet to meaningfully accelerate overall revenue growth, which remains similar to the 8-10% pace reported in each of the past three fiscal years, even as the AI-driven offering now makes up 15% of ARR.
Shares of Docusign added around 2.7% on Friday morning.
Buy DocuSign (DOCU). The news shows AI-driven IAM momentum: IAM is 15.1% of ARR (up from 12.6%), revenue +9% YoY to $875M, gross margin expanding to 79.7%, and free cash flow over $295M. Guidance was raised (Q3 revenue $886–$890M) and the company is accelerating buybacks ($306M vs $201M). Technicals confirm trend strength: golden cross and breakout above the $57.22 neckline.
Key Risk: AI adoption stalls and IAM growth reverses, causing margins/FCF to flatten and buybacks to slow.
DOCU sell/short (valuation risk)
Sell or short DocuSign (DOCU) if the stock keeps running without matching fundamentals. The article highlights a huge move (+62% from the year low) and multiple bullish price targets, which can turn into crowded momentum. If the next earnings report shows IAM share of ARR slipping or guidance missing, the market can quickly re-rate the stock downward.
Key Risk: Next quarter results miss on IAM/ARR mix or guidance, triggering a sharp multiple compression.
DocuSign stock continued its strong bull run as the company’s investments in artificial intelligence (AI) starting to pay off. DOCU jumped to $67.05, up by 62% from its lowest level this year. This rally may continue in the foreseeable future as analysts from companies like Morgan Stanley and Evercore boost their outlook.
DOCU has been in a strong rally in the past few months as it has positioned itself as a major player in the artificial intelligence (AI) industry. In a statement, the company said that its revenue jumped by 9% in the second quarter to $875 million.
IAM is a key product made up of AI agents that analyzes agreement terms and generates contract language. It also has pre-built agents for roles like agreement intake and vendor renewal, and an AI agent studio where customers can build, govern, and deploy custom agents. In a statement, the CEO said:
“Our AI agents are now securely executing contract workflows end-to-end, and the IAM platform also ingested a record volume of agreements.”
Most notably, its Intelligent Agreement Management (IAM) represents 15.1% of its annual recurring revenue (ARR) as of July 31. This is a big increase from 12.6% in April this year.
The company continued growing its gross margins to 79.7% from the previous 79.3%, with its free cash flow rising to over $295 million. Also, the company boosted its guidance, with Q3 revenue expected to move between $886 million and $890 million. Its gross margin will come in between 81.5% and 81.9%.
The management has also used the cheap valuation to buy back the shares. It spent $306 million buying back its shares, higher than the $201 million it spent last year. It has reduced the number of outstanding shares to 193 million from 205 million in 2024.
Analysts believe that the DocuSign stock has more upside, with Morgan Stanley hiking the target from $69 to $75. Evercore ISI, on the other hand, hiked the target to $65, while Needham reiterated its bullish view. BTIG hiked the target from $60 to $75, while Citizens hiked to $86.
DocuSign stock chart | Source: TradingView
The daily chart shows that the DOCU stock formed a double-bottom pattern at $41.45, its lowest level on February 23 and June 18. It has now moved above the neckline at $57.22, its highest point on June 1. This pattern normally points to a bullish reversal.
The stock has formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other. This pattern normally leads to more gains over time.
The stock has moved above the Supertrend indicator, which is a bullish sign. Therefore, the stock will likely continue rising as bulls target the key resistance level of $86.6, its highest point on September 18.
