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Docusign Today

$65.08 -3.33 (-4.87%)

As of 09/8/2026 04:00 PM Eastern

$40.16▼

$86.6539.68

$67.33

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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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.

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.

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) 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.

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DOCU Price Action: Docusign shares were up 3.54% to $68.30 at the time of publication on Friday, according to Benzinga Pro data.

Photo via Shutterstock

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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.

DocuSign Inc. (NASDAQ:DOCU) is trending Friday after reporting second-quarter results Thursday after the market closed.

DocuSign shares are advancing steadily. Why are DOCU shares climbing? Q2 HighlightsDocuSign reported adjusted earnings per share of $1.16, beating the consensus estimate of $1.09. In addition, the company reported revenue of $875.746 million, beating the consensus estimate of $867.432 million.

DocuSign said it repurchased $306.5 million of its common stock during the quarter. The company ended the period with $973.1 million in cash, cash equivalents, and investments.

Q3, FY27 GuidanceDocuSign sees third-quarter sales of $886.000 million to $890.000 million, versus the consensus estimate of $888.558 million. The company also raised its fiscal-year 2027 sales guidance from a range of $3.490 billion to $3.502 billion to a range of $3.499 billion to $3.507 billion, versus the consensus estimate of $3.497 billion.

“DocuSign is raising its outlook as AI accelerates momentum across the business,” said Allan Thygesen, CEO of DocuSign.

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DocuSign Shares Trade FlatDOCU Price Action: At the time of publication, DocuSign shares are trading 0.62% higher at $66.38, according to data from Benzinga Pro.

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Docusign, the most trusted name in agreement tech, applies agreement engine to modern agentic enterprise tech stacks

, /PRNewswire/ -- Docusign (Nasdaq: DOCU) today announced it will open its Model Context Protocol (MCP) Server to every AI agent on September 30. With the Docusign MCP generally available globally, agreement intelligence and governed action — powered by AI engine Docusign Iris — are now callable natively from Claude, ChatGPT, Gemini, Copilot, Slack, and any MCP client, directly accessible by the agents running a business.

"For enterprise AI to truly succeed, it must integrate with the foundational systems that businesses rely on, like agreement management," said Allan Thygesen, CEO of Docusign. "Agents require a robust framework to analyze terms and execute end-to-end agreement workflows. Docusign becomes the essential agreement layer for any platform's agent, leveraging deep context and the rigorous governance customers demand. This is what evolves a connected agent into a trusted partner for contract management."

Docusign has operated an open, API-first platform for two decades, with eSignature embedded in over 1,100 partner-built applications. Now, Docusign's MCP Server extends that same open architecture for agents leveraging a full intelligent agreement suite. The Docusign MCP Server is built for the enterprise, with account-level admin controls, global multi-region infrastructure, and multilingual support. Agents will draw on the full context of past negotiations, accepted terms, clauses, and company policy through Iris, Docusign's AI engine, across Intelligent Agreement Management, and even in advanced CLM workflows.

Available everywhere work happens

Docusign eliminates the need for app-switching that slows deals down by natively embedding contract analysis, sending, and tracking where work already happens. This runs bidirectionally with data from systems like Oracle flowing directly into Docusign, while Docusign's own capabilities extend outward into Slack, Perplexity, and Salesforce where Iris runs natively alongside Agentforce. Salesforce recently named Docusign as a Partner of the Year award winner, recognizing IAM integrations across Salesforce, Agentforce and Slack that empower customers to close deals, pull contract insight for renewals and collaborate on agreements without leaving their flow of work.

Here's what beta customers and partners had to share:

"Salesforce delivers AI agents you can trust, serving customers 24/7, generating new pipeline, and handling routine work at scale — so people can focus on judgment, relationships, and growth. Collaborating with Docusign adds real value for customers who are building their Agentic Enterprise with Salesforce. Agentforce and Slackbot will read and act on contract terms in real-time to accelerate high value sales and service actions. Together we accelerate business processes that our customers really care about," said Joe Inzerillo, President Enterprise & AI Technology, Salesforce. "As organizations move from AI experimentation to enterprise-scale deployment, agreements are an essential workflow that agents need to understand and act on securely. Docusign's MCP capabilities give organizations a practical way to bring agreement workflows into the AI platforms and agent experiences where employees already work. Slalom looks forward to helping joint customers design and deploy these connected experiences in a way that drives productivity while supporting the governance, integration, and change management required for enterprise adoption," said Carlos Etter, Director of Global Enterprise Applications & CLM Practice Leader, Slalom. "Docusign is Experian's core agreement layer. As an early enterprise customer, we're exploring how agentic capabilities can strengthen our agreement intelligence — verifying accuracy at the drafting stage, automating across the contract lifecycle, and in doing so improving both how our teams work and how our clients experience contracting with us. We're excited by the potential agents hold for how enterprises manage agreements at scale," said Gary Sonnenthal, VP, Global Quote to Cash Product Owner, Experian. 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 Communications
[email protected] 

SOURCE Docusign, Inc.

Docusign, Inc. (DOCU) Q2 2027 Earnings Call September 3, 2026 5:00 PM EDT

Company Participants

Gary Fuges
Allan Thygesen - President, CEO & Director
Blake Grayson - Executive VP & CFO

Conference Call Participants

William McNamara - Evercore ISI Institutional Equities, Research Division
Tyler Radke - Citigroup Inc., Research Division
Michael Turrin - Wells Fargo Securities, LLC, Research Division
Christopher Quintero - Morgan Stanley, Research Division
Patrick Walravens - Citizens JMP Securities, LLC, Research Division
Patrick McIlwee - William Blair & Company L.L.C., Research Division
Rishi Jaluria - RBC Capital Markets, Research Division
William Power - Robert W. Baird & Co. Incorporated, Research Division
Jacob Gideon - BofA Securities, Research Division

Presentation

Operator

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's Second Quarter of Fiscal Year 2027 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded and will be available for replay from the Investor Relations section of the website following the call. I will now pass the call over to Gary Fuges, Vice President of Investor Relations. Please go ahead.

Gary Fuges

Thank you, operator. Good afternoon, and welcome to DocuSign's Second Quarter of Fiscal Year 2027 Earnings Conference Call. Joining me on today's call are DocuSign's CEO, Allan Thygesen; and CFO, Blake Grayson. The press release announcing our second quarter of fiscal 2027 results was issued earlier today and is posted on our Investor Relations website, along with a published version of our prepared remarks.

Before we begin, let me remind everyone that some of our statements on today's call are forward-looking, including any statements regarding future performance. We believe our assumptions and expectations related to these forward-looking statements are reasonable, but they are subject to known and unknown risks and uncertainties that may cause our actual results or performance to be materially different.

In particular, our expectations regarding factors

Docusign Inc (NASDAQ:DOCU) posted financial results for the second quarter of fiscal 2027 after the bell on Thursday. Here’s a look at the key metrics from the quarter.

Docusign stock is moving. Where is DOCU stock going? Docusign Q2 HighlightsDocusign 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.

Total revenue was up 9% year-over-year. Net cash from operations totaled $334.5 million, and free cash flow came in at $295.8 million in the quarter.

Docusign said it repurchased $306.5 million of its common stock during the quarter. The company ended the period with $973.1 million in cash, cash equivalents and investments.

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.

Docusign management will discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

DOCU Shares Move HigherDOCU Price Action: Docusign shares were up 5.35% in after-hours trading at $69.73 at the time of publication on Thursday, according to Benzinga Pro.

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Company Increases Fiscal Year 2027 Guidance for Revenue, ARR and IAM's Percentage of Total ARR

, /PRNewswire/ -- Docusign, Inc. (NASDAQ: DOCU) today announced results for its second fiscal quarter ended July 31, 2026. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast.

"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."

Second Quarter Financial Highlights

Revenue was $875.7 million, a 9% year-over-year increase including a benefit of approximately 1.3% from the impact of foreign exchange rates. Intelligent Agreement Management ("IAM") represented 15.1% of our total Annual Recurring Revenue ("ARR") as of July 31, 2026, compared to 12.6% of our total ARR as of April 30, 2026. GAAP gross margin was 79.7% compared to 79.3% in the same period last year. Non-GAAP gross margin was 81.7% compared to 82.0% in the same period last year. GAAP net income per basic share was $0.41 on 191 million shares outstanding compared to $0.31 on 203 million shares outstanding in the same period last year. GAAP net income per diluted share was $0.40 on 193 million shares outstanding compared to $0.30 on 211 million shares outstanding in the same period last year. Non-GAAP net income per diluted share was $1.16 on 193 million shares outstanding compared to $0.92 on 211 million shares outstanding in the same period last year. Net cash provided by operating activities was $334.5 million compared to $246.1 million in the same period last year. Free cash flow was $295.8 million, or a 34% margin, compared to $217.6 million, or a 27% margin, in the same period last year. Cash, cash equivalents, and investments were $973.1 million at the end of the quarter. Repurchases of common stock were $306.5 million, compared to $201.5 million in the same period last year. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures and Other Key Metrics."

Key Business Highlights

Delivered on IAM Capabilities Announced at Docusign Momentum:

Launched new agentic tools, powered by Iris, Docusign's contract-specific AI, to help organizations understand what's inside agreements, automate work, and take action.

An AI assistant that analyzes agreement terms, reviews and redlines contracts, generates contract language, and triggers agentic workflows. Pre-built agents for common use cases, including agreement intake and vendor renewal. An Agent Studio where customers can build, govern, and deploy custom agents for specialized use cases like executing business playbooks, auditing compliance, and evaluating vendor pricing. Ability to add agents directly into Workflow Builder to bring AI-based decisions making and routing to traditional workflows. Released the Docusign Model Context Protocol (MCP) server, enabling organizations to securely bring Docusign agreement intelligence and actions into the AI tools that they already use, while maintaining enterprise-grade security, permissions, and governance.

Expanded MCP server integrations with the Docusign app for the Slack Marketplace, which brings agentic contract workflows directly in Slack, as well as an integration with Perplexity to help teams automate contracting workflows and collaborate across their business partners. The Docusign connector for Gemini Enterprise is also now part of Google Cloud's Gemini Enterprise for Legal solution. These are in addition to existing connectors with Anthropic, Gemini, OpenAI, and Microsoft's Copilot.

Expansion of IAM for the Enterprise:

Integrated IAM capabilities including Agreement Manager into Docusign CLM, giving users an AI-powered repository that turns static files into searchable business insights so they can identify risks sooner and uncover cost-saving opportunities.

Guidance

The company currently expects the following guidance:

(in millions, except percentages)

Three Months Ended
October 31, 2026

YoY
Midpoint
Change

Revenue [1]

$886

to

$890

9 %

Non-GAAP gross margin

81.5 %

to

81.9 %

NA

Non-GAAP operating margin

31.3 %

to

31.7 %

NA

Non-GAAP diluted weighted-average shares outstanding

191

to

196

NA

(in millions, except percentages)

Year Ended
January 31, 2027

YoY
Midpoint
Change

Revenue [1]

$3,499

to

$3,507

9 %

Annual recurring revenue year-over-year growth rate [2]

8.50 %

to

9.00 %

8.75 %

Non-GAAP gross margin

81.5 %

to

82.0 %

NA

Non-GAAP operating margin

31.0 %

to

31.5 %

NA

Non-GAAP diluted weighted-average shares outstanding

190

to

195

NA

[1] Excluding the impact of foreign currency exchange rates on year-over-year guided revenue growth, revenue guidance range would be approximately 1.0% points lower for the quarter ending October 31, 2026 and 1.2% points lower for the fiscal year ending January 31, 2027.

[2] We expect that IAM will represent approximately 18% to 19% of total ARR exiting Q4 of Fiscal 2027.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by many factors, including the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release.

Webcast Conference Call Information

The company will host a conference call and live webcast on September 3, 2026 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its financial performance and business outlook. Prepared remarks will also be available on Docusign's investor relations website prior to the webcast.

Conference Call Details

Live webcast will be available on Docusign's investor relations website at investor.docusign.com Domestic Toll-Free Dial-In: (877) 407-0784 International Dial-In: (201) 689-8560 An archived replay of the webcast will be available the following day at investor.docusign.com

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 AI-native 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.

Copyright 2026. Docusign, Inc. is the owner of DOCUSIGN® and all its other marks (www.docusign.com/IP). 

Investor Relations:
Docusign Investor Relations
[email protected]

Media Relations:
Docusign Corporate Communications
[email protected]

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. All statements contained in this press release other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, our objectives for future operations, and the impact of such assumptions on our financial condition and results of operations are forward-looking statements. Forward-looking statements in this press release also include, among other things, statements under "Guidance" above and any other statements about expected financial metrics, such as revenue, annual recurring revenue, free cash flow, non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted weighted-average shares outstanding, and non-financial metrics, as well as statements related to our expectations regarding: the impact of foreign exchange rates; the timing and extent of customer renewals; the effectiveness of changes to our sales force and go-to-market strategy; the effects of seasonality; the timing and impact of our cloud migration transition; the benefits, the timing or rollout of future products and capabilities; the evolution, customer demand, and adoption of the Docusign IAM platform; and our utilization of our stock repurchase program, including the expected timing, duration, volume and nature of share repurchase under such program. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions.

Forward-looking statements contained in this press release include, but are not limited to, statements about: our expectations regarding global macro-economic conditions, including the effects of inflation, volatile interest rates or foreign exchange rates, and market volatility on the global economy; our inability to accurately estimate our market opportunity; our ability to compete effectively in an evolving and competitive market; the impact of any interruptions or delays in performance of our technical infrastructure, or data breaches, cyberattacks or other fraudulent or malicious activity attempting to exploit our technology systems, platform or brand name; our ability to effectively sustain and manage our growth and future expenses and maintain or increase profitability; our ability to attract new customers and retain and expand our existing customer base, including our ability to attract large organizations as users; our ability to scale and update our platform to respond to customers' needs and rapid technological change, including our ability to successfully incorporate artificial intelligence into our existing and future products and to successfully deploy them; our ability to successfully develop, launch, and sell IAM solutions; our ability to expand use cases within existing customers and vertical solutions; our ability to expand our operations and increase adoption of our platform internationally; our ability to strengthen and foster our relationships with developers; our ability to retain our direct sales force, customer success team and strategic partnerships around the world; our ability to identify targets for and execute potential acquisitions and to successfully integrate and realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash, cash equivalents and capital resources to satisfy our liquidity needs; limitations on us due to obligations we have under our credit facility; our ability to realize the anticipated benefits of our stock repurchase program; our failure or the failure of our software to comply with applicable industry standards, laws and regulations; our ability to maintain, protect and enhance our intellectual property; our ability to successfully defend litigation against us; our ability to maintain our corporate culture; our ability to offer high-quality customer support; our ability to hire, retain and motivate qualified personnel, including executive level management; our ability to successfully manage and integrate executive management transitions; uncertainties regarding the impact of general economic and market conditions, including as a result of geopolitical conflict or changes in trade policies and practices; and our ability to maintain proper and effective internal controls.

Additional risks and uncertainties that could affect our financial results are included in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for the fiscal year ended January 31, 2026, filed on March 18, 2026, our quarterly report on Form 10-Q for the quarter ended July 31, 2026, which we expect to file on September 4, 2026 with the Securities and Exchange Commission (the "SEC"), and other filings that we make from time to time with the SEC. The forward-looking statements made in this press release relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this press release or to conform such statements to actual results or revised expectations, except as required by law.

Non-GAAP Financial Measures and Other Key Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We present these non-GAAP measures to assist investors in seeing our financial performance using a management view, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, these non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income per share: We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, and, as applicable, other special items. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies and over multiple periods. In addition to these exclusions, we subtract an assumed provision for income taxes to calculate non-GAAP net income. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2026 and fiscal 2027, we have determined the projected non-GAAP tax rate to be 21%.

Free cash flow: We define free cash flow as net cash provided by operating activities less purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of revenue. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business and to make acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment, including capitalized software development costs. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

Annual Recurring Revenue: We calculate ARR as the annualized value of active customer contracts as of the measurement date. This calculation assumes that any contract expiring within the next 12 months renews on its existing terms, and excludes non-recurring revenue streams recognized at a point in time. When evaluating ARR on a product basis for contracts spanning multiple product lines, we allocate the support contract value to each product offering based on its proportional share of the total contract value. To annualize contracts, we divide the total committed contract value by the number of months in the subscription term and multiply by twelve. For international contracts denominated in foreign currencies, ARR is translated into U.S. dollars using a fixed exchange rate set at the beginning of each fiscal year. We adjust previously reported ARR annually to reflect these exchange rate changes for comparative purposes. We believe ARR measures our business performance and serves as a leading indicator of future revenue growth. We report total ARR annually at the end of the fiscal year. Because quarterly net new ARR represents only a fraction of our overall book of business, it is subject to timing volatility and can be highly volatile on a year-over-year basis. Because the objective of ARR is to evaluate the long-term growth of our business, these quarterly timing fluctuations can detract from the insight and usefulness of ARR. ARR is an operating metric and should be viewed independently of revenue, deferred revenue, and remaining performance obligations; it does not represent revenue under U.S. GAAP on an annual basis.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands, except per share data)

2026

2025

2026

2025

Revenue

$   875,746

$   800,636

$ 1,705,981

$ 1,564,290

Cost of revenue

177,872

165,463

349,142

322,732

Gross profit

697,874

635,173

1,356,839

1,241,558

Operating expenses:

Sales and marketing

313,958

305,450

610,133

601,863

Research and development

163,582

169,630

323,168

329,077

General and administrative

102,713

94,866

194,608

185,136

Total operating expenses

580,253

569,946

1,127,909

1,116,076

Income from operations

117,621

65,227

228,930

125,482

Interest expense

(569)

(828)

(1,120)

(1,306)

Interest income and other income, net                                        

7,924

12,061

14,922

26,074

Income before provision for income taxes                                         

124,976

76,460

242,732

150,250

Provision for income taxes

47,261

13,490

86,820

15,193

Net income

$    77,715

$    62,970

$   155,912

$   135,057

Net income per share attributable to common stockholders:

Basic

$       0.41

$       0.31

$       0.81

$       0.67

Diluted

$       0.40

$       0.30

$       0.80

$       0.64

Weighted-average shares used in computing net income per share:

Basic

191,252

202,644

193,336

202,957

Diluted

193,117

210,956

194,763

211,878

Stock-based compensation expense included in costs and expenses:

Cost of revenue

$    15,241

$    18,592

$    30,550

$    35,496

Sales and marketing

46,828

49,081

89,854

95,166

Research and development

55,502

61,865

109,978

116,296

General and administrative

31,033

31,000

59,599

59,176

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

July 31, 2026

January 31, 2026

Assets

Current assets

Cash and cash equivalents

$            528,161

$            602,442

Investments—current

249,516

264,084

Accounts receivable, net

370,531

516,429

Contract assets—current

7,552

10,782

Prepaid expenses and other current assets

113,132

97,101

Total current assets

1,268,892

1,490,838

Investments—noncurrent

195,398

208,393

Property and equipment, net

420,032

361,808

Operating lease right-of-use assets

155,101

165,578

Goodwill

458,365

458,446

Intangible assets, net

51,924

61,394

Deferred contract acquisition costs—noncurrent                                                                              

468,812

474,628

Deferred tax assets—noncurrent

764,330

835,245

Other assets—noncurrent

177,936

173,220

Total assets

$         3,960,790

$         4,229,550

Liabilities and Equity

Current liabilities

Accounts payable

$             21,866

$             17,419

Accrued expenses and other current liabilities

121,046

113,358

Accrued compensation

239,042

260,840

Contract liabilities—current

1,575,565

1,631,168

Operating lease liabilities—current

15,516

16,623

Total current liabilities

1,973,035

2,039,408

Contract liabilities—noncurrent

28,824

29,956

Operating lease liabilities—noncurrent

167,582

168,496

Deferred tax liability—noncurrent

20,960

21,507

Other liabilities—noncurrent

51,869

52,363

Total liabilities

2,242,270

2,311,730

Stockholders' equity

Common stock

19

20

Additional paid-in capital

4,052,431

3,777,995

Accumulated other comprehensive loss

(7,843)

(3,712)

Accumulated deficit

(2,326,087)

(1,856,483)

Total stockholders' equity

1,718,520

1,917,820

Total liabilities and equity

$         3,960,790

$         4,229,550

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands)

2026

2025

2026

2025

Cash flows from operating activities:

Net income

$    77,715

$    62,970

$  155,912

$  135,057

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation and amortization

33,786

28,880

65,994

59,249

Amortization of deferred contract acquisition and fulfillment
costs

69,680

68,654

137,038

135,136

Non-cash operating lease costs

4,890

4,704

9,754

9,364

Stock-based compensation expense

148,604

160,538

289,981

306,134

Deferred income taxes

37,795

4,997

70,827

1,532

Other

2,003

84

3,923

1,945

Changes in operating assets and liabilities:

Accounts receivable

(71,693)

(50,674)

142,755

70,329

Prepaid expenses and other current assets

15,016

5,544

(16,816)

(23,007)

Deferred contract acquisition and fulfillment costs

(67,185)

(71,340)

(132,676)

(127,988)

Other assets

5,402

(2,179)

7,722

(1,335)

Accounts payable

(3,666)

(14,030)

(444)

(20,794)

Accrued expenses and other liabilities

7,390

175

1,930

4,800

Accrued compensation

63,871

37,214

(24,544)

(24,237)

Contract liabilities

10,421

15,966

(55,132)

(18,274)

Operating lease liabilities

517

(5,430)

10

(10,399)

Net cash provided by operating activities

334,546

246,073

656,234

497,512

Cash flows from investing activities:

Purchases of marketable securities

(57,915)

(119,637)

(155,323)

(212,200)

Maturities of marketable securities

88,976

117,710

182,000

208,972

Purchases of strategic and other investments

(150)

(100)

(2,760)

(100)

Proceeds from strategic and other investments

1,000

—

1,000

—

Purchases of property and equipment

(38,789)

(28,425)

(71,042)

(52,049)

Net cash used in investing activities

(6,878)

(30,452)

(46,125)

(55,377)

Cash flows from financing activities:

Payment of revolving credit facility costs

—

(3,133)

—

(3,133)

Repurchases of common stock

(306,516)

(201,514)

(624,026)

(384,945)

Payment of tax withholding obligation on net RSU settlement and
ESPP purchase

(38,580)

(69,164)

(78,116)

(131,957)

Proceeds from exercise of stock options

—

471

53

1,170

Proceeds from employee stock purchase plan

—

—

22,799

22,010

Other

—

—

(220)

—

Net cash used in financing activities

(345,096)

(273,340)

(679,510)

(496,855)

Effect of foreign exchange on cash, cash equivalents and
restricted cash

(2,767)

1,529

(3,248)

11,452

Net decrease in cash, cash equivalents and restricted cash

(20,195)

(56,190)

(72,649)

(43,268)

Cash, cash equivalents and restricted cash at beginning of
period (1)

565,696

672,476

618,150

659,554

Cash, cash equivalents and restricted cash at end of period (1)                                

$  545,501

$  616,286

$  545,501

$  616,286

(1) Cash, cash equivalents and restricted cash included restricted cash of $17.3 million and $15.7 million at July 31, 2026 and January 31, 2026.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

Reconciliation of gross profit and gross margin:

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands)

2026

2025

2026

2025

GAAP gross profit

$  697,874

$  635,173

$  1,356,839

$  1,241,558

Add: Stock-based compensation

15,241

18,592

30,550

35,496

Add: Employer payroll tax on employee stock transactions

904

1,575

2,030

3,448

Add: Amortization of acquisition-related intangibles

1,495

1,562

2,990

5,127

Non-GAAP gross profit

$  715,514

$  656,902

$  1,392,409

$  1,285,629

GAAP gross margin

79.7 %

79.3 %

79.5 %

79.4 %

Non-GAAP adjustments

2.0 %

2.7 %

2.1 %

2.8 %

Non-GAAP gross margin

81.7 %

82.0 %

81.6 %

82.2 %

Reconciliation of operating expenses:

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands)

2026

2025

2026

2025

GAAP sales and marketing

$  313,958

$  305,450

$  610,133

$  601,863

Less: Stock-based compensation

(46,828)

(49,081)

(89,854)

(95,166)

Less: Employer payroll tax on employee stock transactions

(2,227)

(2,962)

(4,697)

(6,902)

Less: Amortization of acquisition-related intangibles

(3,240)

(3,354)

(6,480)

(6,708)

Non-GAAP sales and marketing

$  261,663

$  250,053

$  509,102

$  493,087

GAAP sales and marketing as a percentage of revenue

35.9 %

38.2 %

35.7 %

38.5 %

Non-GAAP sales and marketing as a percentage of revenue

29.9 %

31.2 %

29.8 %

31.6 %

GAAP research and development

$  163,582

$  169,630

$  323,168

$  329,077

Less: Stock-based compensation

(55,502)

(61,865)

(109,978)

(116,296)

Less: Employer payroll tax on employee stock transactions

(2,131)

(2,600)

(5,818)

(7,681)

Non-GAAP research and development

$  105,949

$  105,165

$  207,372

$  205,100

GAAP research and development as a percentage of revenue

18.7 %

21.2 %

18.9 %

21.1 %

Non-GAAP research and development as a percentage of
revenue

12.1 %

13.1 %

12.2 %

13.1 %

GAAP general and administrative

$  102,713

$    94,866

$  194,608

$  185,136

Less: Stock-based compensation

(31,033)

(31,000)

(59,599)

(59,176)

Less: Employer payroll tax on employee stock transactions

(554)

(911)

(1,456)

(2,276)

Non-GAAP general and administrative

$    71,126

$    62,955

$  133,553

$  123,684

GAAP general and administrative as a percentage of revenue

11.7 %

11.8 %

11.5 %

11.8 %

Non-GAAP general and administrative as a percentage of
revenue

8.1 %

7.9 %

7.8 %

7.9 %

Reconciliation of income from operations and operating margin:

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands)

2026

2025

2026

2025

GAAP income from operations

$  117,621

$    65,227

$  228,930

$  125,482

Add: Stock-based compensation

148,604

160,538

289,981

306,134

Add: Employer payroll tax on employee stock transactions

5,816

8,048

14,001

20,307

Add: Amortization of acquisition-related intangibles

4,735

4,916

9,470

11,835

Non-GAAP income from operations

$  276,776

$  238,729

$  542,382

$  463,758

GAAP operating margin

13.4 %

8.1 %

13.4 %

8.0 %

Non-GAAP adjustments

18.2 %

21.7 %

18.4 %

21.6 %

Non-GAAP operating margin

31.6 %

29.8 %

31.8 %

29.6 %

Reconciliation of net income and net income per share, basic and diluted:

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands, except per share data)

2026

2025

2026

2025

GAAP net income

$    77,715

$    62,970

$   155,912

$   135,057

Add: Stock-based compensation

148,604

160,538

289,981

306,134

Add: Employer payroll tax on employee stock transactions

5,816

8,048

14,001

20,307

Add: Amortization of acquisition-related intangibles

4,735

4,916

9,470

11,835

Add: Income tax and other tax adjustments

(12,407)

(41,387)

(29,979)

(87,397)

Non-GAAP net income attributable to common
stockholders

$   224,463

$   195,085

$   439,385

$   385,936

Numerator:

Non-GAAP net income attributable to common stockholders

$   224,463

$   195,085

$   439,385

$   385,936

Denominator:

Weighted-average common shares outstanding, basic

191,252

202,644

193,336

202,957

Effect of dilutive securities

1,865

8,312

1,427

8,921

Non-GAAP weighted-average common shares
outstanding, diluted

193,117

210,956

194,763

211,878

GAAP net income per share, basic

$       0.41

$       0.31

$       0.81

$       0.67

GAAP net income per share, diluted

$       0.40

$       0.30

$       0.80

$       0.64

Non-GAAP net income per share, basic

$       1.17

$       0.96

$       2.27

$       1.90

Non-GAAP net income per share, diluted

$       1.16

$       0.92

$       2.26

$       1.82

Computation of free cash flow:

Three Months Ended
July 31,

Six Months Ended
July 31,

(in thousands)

2026

2025

2026

2025

Net cash provided by operating activities

$  334,546

$  246,073

$  656,234

$  497,512

Less: Purchases of property and equipment

(38,789)

(28,425)

(71,042)

(52,049)

Free cash flow

$  295,757

$  217,648

$  585,192

$  445,463

Free cash flow margin

34 %

27 %

34 %

28 %

SOURCE Docusign, Inc.

Wall Street analysts forecast that DocuSign (DOCU - Free Report) will report quarterly earnings of $1.08 per share in its upcoming release, pointing to a year-over-year increase of 17.4%. It is anticipated that revenues will amount to $867.65 million, exhibiting an increase of 8.4% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain DocuSign metrics that are commonly tracked and forecasted by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Revenue- Professional services and other' of $18.46 million. The estimate suggests a change of +13.6% year over year.

The average prediction of analysts places 'Revenue- Subscription' at $848.94 million. The estimate indicates a year-over-year change of +8.2%.

The consensus among analysts is that 'Total Customers' will reach 1.90 million. Compared to the current estimate, the company reported 1.70 million in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Enterprise & Commercial Customers' will likely reach 289.32 thousand. Compared to the present estimate, the company reported 271.00 thousand in the same quarter last year.

View all Key Company Metrics for DocuSign here>>>

Over the past month, DocuSign shares have recorded returns of +12.3% versus the Zacks S&P 500 composite's +2% change. Based on its Zacks Rank #2 (Buy), DOCU will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

In the latest trading session, DocuSign (DOCU - Free Report) closed at $60.54, marking a -3.23% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 0.66%.

Shares of the provider of electronic signature technology witnessed a gain of 18.24% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.08%, and the S&P 500's gain of 3.34%.

The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is scheduled to release its earnings on September 3, 2026. On that day, DocuSign is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 17.39%. In the meantime, our current consensus estimate forecasts the revenue to be $868.04 million, indicating a 8.42% growth compared to the corresponding quarter of the prior year.

DOCU's full-year Zacks Consensus Estimates are calling for earnings of $4.54 per share and revenue of $3.49 billion. These results would represent year-over-year changes of +18.23% and +8.53%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for DocuSign. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.89% higher within the past month. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).

In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 13.78. This valuation marks a discount compared to its industry average Forward P/E of 20.83.

It's also important to note that DOCU currently trades at a PEG ratio of 0.82. 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. The Internet - Software was holding an average PEG ratio of 1.09 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

The market expects DocuSign (DOCU - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on September 3, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis provider of electronic signature technology is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +17.4%.

Revenues are expected to be $868.04 million, up 8.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for DocuSign?For DocuSign, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.73%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that DocuSign will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that DocuSign would post earnings of $1 per share when it actually produced earnings of $1.09, delivering a surprise of +9.00%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

DocuSign appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Deutsche Bank AG purchased a new stake in shares of Docusign Inc. (NASDAQ:DOCU – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 208,285 shares of the company’s stock, valued at approximately $9,252,000. Deutsche Bank AG owned about 0.11% of Docusign at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Modus Advisors LLC bought a new position in Docusign during the fourth quarter valued at approximately $27,000. Torren Management LLC acquired a new stake in Docusign in the fourth quarter valued at approximately $28,000. Cary Street Partners Investment Advisory LLC grew its position in Docusign by 309.5% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 561 shares of the company’s stock worth $38,000 after acquiring an additional 424 shares in the last quarter. Basepoint Wealth LLC bought a new stake in Docusign in the fourth quarter worth approximately $39,000. Finally, WealthCollab LLC increased its stake in shares of Docusign by 372.4% during the 1st quarter. WealthCollab LLC now owns 855 shares of the company’s stock worth $41,000 after purchasing an additional 674 shares during the last quarter. Institutional investors own 77.64% of the company’s stock.

Wall Street Analyst Weigh In A number of research analysts have recently weighed in on the stock. Citigroup restated a “market outperform” rating on shares of Docusign in a report on Tuesday, August 18th. Wall Street Zen cut shares of Docusign from a “strong-buy” rating to a “buy” rating in a report on Sunday, August 2nd. Citizens Jmp reissued a “market outperform” rating and set a $86.00 target price on shares of Docusign in a research report on Tuesday, August 18th. Wells Fargo & Company cut their target price on Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a report on Friday, June 5th. Finally, Weiss Ratings raised Docusign from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 14th. Four investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Docusign presently has a consensus rating of “Hold” and an average target price of $60.27.

Check Out Our Latest Research Report on Docusign Docusign Price Performance Shares of DOCU stock opened at $62.00 on Monday. Docusign Inc. has a 12 month low of $40.16 and a 12 month high of $86.65. The business’s 50 day moving average is $51.59 and its two-hundred day moving average is $48.62. The company has a market cap of $11.84 billion, a PE ratio of 40.26, a price-to-earnings-growth ratio of 1.81 and a beta of 0.87.

Docusign (NASDAQ:DOCU – Get Free Report) last released its quarterly earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $0.99 by $0.10. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The company had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. During the same quarter last year, the firm posted $0.90 earnings per share. The company’s quarterly revenue was up 8.7% compared to the same quarter last year. As a group, equities analysts expect that Docusign Inc. will post 2.04 EPS for the current fiscal year.

Insiders Place Their Bets In other Docusign news, insider James P. Shaughnessy sold 12,000 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were 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 $2,405,195.10. The trade was a 18.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $46.02, for a total transaction of $1,208,025.00. Following the sale, the chief executive officer owned 159,038 shares of the company’s stock, valued at $7,318,928.76. This trade represents a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 91,695 shares of company stock worth $4,376,002 in the last ninety days. 0.59% of the stock is owned by insiders.

Docusign Company Profile (Free Report)

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.

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Docusign remains undervalued, trading at a 14x forward P/E versus peers at 23x, despite a recent 13% stock decline. I maintain a Buy rating, as DOCU's fundamentals have improved while its valuation discount to peers persists. Risks of continued underperformance exist, but strong fundamentals and market leadership support a potential rerating.

Key Takeaways Docusign stock gained 18.7% in a month, outpacing its industry and the S&P 500 Composite.DOCU is expanding IAM with AI-powered review agents, workflow tools and major platform integrations.Docusign held about $1B in cash and investments, had no debt and posted 28% operating cash flow growth. Docusign (DOCU - Free Report) stock has gained 18.7% in a month compared with the industry’s 0.3% growth and the Zacks S&P 500 Composite's 2.9% return.

DOCU’s 1-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 AI-backed ScalabilityDocusign continues to benefit from broad use of e-Signature while expanding customer relationships through its Intelligent Agreement Management (IAM) platform. The company is extending beyond eSignature by building IAM around agreement creation, review, workflow automation and post-signature management.

The company witnessed investments from 40,000 customers in IAM during the first quarter of fiscal 2027, representing 12.6% of total Annual Recurring Revenue, up from 10.8% at fiscal 2026 year-end. DOCU expanded the platform’s capabilities through new artificial intelligence (AI)-powered offerings under its Iris agreement AI engine. New contract review agents, workflow automation tools and integrations with platforms such as Anthropic Claude, OpenAI ChatGPT, Salesforce, Coupa and Thomson Reuters are intended to deepen customer engagement and strengthen DOCU’s competitive position in agreement management.

DOCU’s Strong Profitability Attracts InvestorsRecently, Docusign delivered solid profit figures in the first quarter of fiscal 2027. Its non-GAAP operating income rose 18% year over year to $266 million, while operating margin expanded 250 basis points to 32%. Adjusted net income increased 12.6% year over year, while adjusted earnings per share rose 21.1% year over year to $1.09 per share. Results benefited from higher revenues, disciplined spending, increased capitalization of development costs and an insurance-related legal reimbursement. Such results boosted shareholder confidence in the company's profit growth. invest

DOCU’s Solid Cash ProfileAs of April 30, 2026, DOCU held approximately $1 billion in cash, cash equivalents and investments with no debt. This solid cash position, which was enhanced by 28% year-over-year growth in operating cash flow during the last reported quarter, provides DOCU with sufficient flexibility to invest in its scaling business without hampering its short-term financial position. Free cash flow increased by 27% during this time frame.

DOCU’s Zacks Rank & Stocks to ConsiderDocusign currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices, Inc. (ADI - Free Report) and AMETEK, Inc. (AME - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Analog Devices carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 31%.

ADI delivered a trailing four-quarter earnings surprise of 5.5%, on average.

AMETEK also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 9.4%.

AME beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 4.9%.

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.

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Zacks Premium also includes 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 assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means 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 ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience 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, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and 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.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure 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.

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 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 B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.18; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.01 to $4.54 per share. DOCU boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, DOCU should be on investors' short list.

DocuSign (DOCU - Free Report) closed at $58.10 in the latest trading session, marking a -2.09% move from the prior day. This move lagged the S&P 500's daily gain of 0.26%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.54%.

Shares of the provider of electronic signature technology witnessed a gain of 20.17% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.41%, and the S&P 500's gain of 2.13%.

Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. On that day, DocuSign is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 17.39%. In the meantime, our current consensus estimate forecasts the revenue to be $868.04 million, indicating a 8.42% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $4.54 per share and a revenue of $3.49 billion, demonstrating changes of +18.23% and +8.53%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, DocuSign is holding a Forward P/E ratio of 13.07. This signifies a discount in comparison to the average Forward P/E of 21.01 for its industry.

Also, we should mention that DOCU has a PEG ratio of 0.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.14 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Posted by Defense World Staff on Aug 11th, 2026

Cetera Investment Advisers decreased its position in shares of Docusign Inc. (NASDAQ:DOCU – Free Report) by 31.8% during the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 37,108 shares of the company’s stock after selling 17,289 shares during the period. Cetera Investment Advisers’ holdings in Docusign were worth $1,759,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of DOCU. Modus Advisors LLC acquired a new position in Docusign in the 4th quarter valued at $27,000. Torren Management LLC acquired a new stake in shares of Docusign during the fourth quarter worth $28,000. Cary Street Partners Investment Advisory LLC grew its position in shares of Docusign by 309.5% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 561 shares of the company’s stock valued at $38,000 after purchasing an additional 424 shares during the period. Basepoint Wealth LLC acquired a new position in Docusign in the fourth quarter valued at $39,000. Finally, Harbour Investments Inc. increased its stake in Docusign by 56.6% in the fourth quarter. Harbour Investments Inc. now owns 797 shares of the company’s stock valued at $55,000 after purchasing an additional 288 shares during the last quarter. Institutional investors and hedge funds own 77.64% of the company’s stock.

Docusign Price Performance Shares of NASDAQ:DOCU opened at $59.64 on Tuesday. The business has a 50-day moving average of $49.23 and a two-hundred day moving average of $48.26. The firm has a market capitalization of $11.39 billion, a PE ratio of 38.73, a P/E/G ratio of 1.78 and a beta of 0.87. Docusign Inc. has a 12 month low of $40.16 and a 12 month high of $86.65.

Docusign (NASDAQ:DOCU – Get Free Report) last released its quarterly earnings data on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, beating the consensus estimate of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The business had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. During the same period in the previous year, the company posted $0.90 EPS. The company’s revenue was up 8.7% compared to the same quarter last year. As a group, research analysts anticipate that Docusign Inc. will post 2.03 earnings per share for the current year.

Insider Activity In other news, insider Robert Chatwani sold 15,902 shares of the firm’s stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $43.01, for a total value of $683,945.02. Following the transaction, the insider owned 72,805 shares of the company’s stock, valued at approximately $3,131,343.05. This trade represents a 17.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of Docusign stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $546,480.00. Following the transaction, the insider owned 52,815 shares in the company, valued at $2,405,195.10. The trade was a 18.51% decrease in their position. 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 sold a total of 76,695 shares of company stock valued at $3,476,002 over the last quarter. 0.59% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth A number of analysts have issued reports on DOCU shares. Needham & Company LLC reissued a “hold” rating on shares of Docusign in a research note on Friday, June 5th. BTIG Research dropped their price objective on shares of Docusign from $70.00 to $60.00 and set a “buy” rating for the company in a research note on Friday, June 5th. Wall Street Zen lowered shares of Docusign from a “strong-buy” rating to a “buy” rating in a report on Sunday, August 2nd. Wells Fargo & Company decreased their target price on shares of Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Friday, June 5th. Finally, Jefferies Financial Group boosted their target price on shares of Docusign from $45.00 to $50.00 and gave the company a “hold” rating in a report on Friday, June 5th. Three investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $60.27.

View Our Latest Report on Docusign

Docusign Profile (Free Report)

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.

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Posted by Defense World Staff on Aug 9th, 2026

Empowered Funds LLC decreased its stake in shares of Docusign Inc. (NASDAQ:DOCU – Free Report) by 84.8% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 26,812 shares of the company’s stock after selling 150,086 shares during the period. Empowered Funds LLC’s holdings in Docusign were worth $1,271,000 as of its most recent filing with the SEC.

Other institutional investors have also made changes to their positions in the company. Modus Advisors LLC acquired a new position in Docusign during the fourth quarter valued at approximately $27,000. Torren Management LLC acquired a new stake in shares of Docusign in the fourth quarter worth $28,000. Cary Street Partners Investment Advisory LLC boosted its holdings 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 buying an additional 424 shares during the period. Basepoint Wealth LLC bought a new stake in shares of Docusign during the 4th quarter worth $39,000. Finally, WealthCollab LLC grew its stake in Docusign by 372.4% in the 1st quarter. WealthCollab LLC now owns 855 shares of the company’s stock valued at $41,000 after buying an additional 674 shares during the last quarter. 77.64% of the stock is owned by institutional investors.

Insider Buying and Selling at Docusign In other Docusign news, CFO Blake Jeffrey Grayson sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.55, for a total transaction of $683,250.00. Following the completion of the transaction, the chief financial officer owned 141,429 shares in the company, valued at $6,442,090.95. This trade represents a 9.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $546,480.00. Following the transaction, the insider owned 52,815 shares of the company’s stock, valued at approximately $2,405,195.10. This represents a 18.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 76,695 shares of company stock worth $3,476,002 in the last 90 days. 0.59% of the stock is currently owned by insiders.

Docusign Trading Up 5.9% DOCU opened at $60.26 on Friday. The stock has a market cap of $11.51 billion, a PE ratio of 39.13, a P/E/G ratio of 1.78 and a beta of 0.87. Docusign Inc. has a 1 year low of $40.16 and a 1 year high of $86.65. The stock’s 50 day simple moving average is $49.18 and its 200-day simple moving average is $48.29.

Docusign (NASDAQ:DOCU – Get Free Report) last issued its earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The firm had revenue of $830.24 million during the quarter, compared to analysts’ expectations of $824.71 million. Docusign’s quarterly revenue was up 8.7% compared to the same quarter last year. During the same period last year, the business earned $0.90 earnings per share. Equities analysts forecast that Docusign Inc. will post 2.03 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth Several research analysts recently commented on the stock. Wedbush dropped their target price on shares of Docusign from $60.00 to $58.00 and set a “neutral” rating on the stock in a report on Friday, June 5th. Jefferies Financial Group upped their price target on shares of Docusign from $45.00 to $50.00 and gave the company a “hold” rating in a report on Friday, June 5th. UBS Group set a $60.00 price target on Docusign in a research report on Friday, June 5th. Wall Street Zen lowered Docusign from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 2nd. Finally, Needham & Company LLC reissued a “hold” rating on shares of Docusign in a research report on Friday, June 5th. Three research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Docusign presently has a consensus rating of “Hold” and an average price target of $60.27.

Read Our Latest Report on DOCU

Docusign Company Profile (Free Report)

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.

Featured Stories Five stocks we like better than Docusign Quantum Earnings Week: Winners and Losers Are Finally Emerging Axon’s Post-Earnings Pullback May Be More About Valuation Than Growth Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish Want to see what other hedge funds are holding DOCU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Docusign Inc. (NASDAQ:DOCU – Free Report).

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Posted by Defense World Staff on Aug 3rd, 2026

Dimensional Fund Advisors LP raised its stake in shares of Docusign Inc. (NASDAQ:DOCU – Free Report) by 7.9% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 1,100,891 shares of the company’s stock after buying an additional 80,442 shares during the period. Dimensional Fund Advisors LP owned about 0.57% of Docusign worth $52,177,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of the stock. State Street Corp boosted its stake in shares of Docusign by 0.9% in the fourth quarter. State Street Corp now owns 8,193,805 shares of the company’s stock worth $560,456,000 after buying an additional 77,008 shares during the last quarter. Capital World Investors raised its position in Docusign by 38.1% during the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock valued at $397,801,000 after acquiring an additional 1,603,900 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Docusign by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company’s stock valued at $278,665,000 after acquiring an additional 18,873 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Docusign by 8.1% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,343,613 shares of the company’s stock valued at $228,703,000 after acquiring an additional 251,639 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Docusign by 46.1% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,001,132 shares of the company’s stock valued at $205,277,000 after acquiring an additional 946,512 shares during the period. Institutional investors and hedge funds own 77.64% of the company’s stock.

Insider Transactions at Docusign In related news, CFO Blake Jeffrey Grayson sold 15,000 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $45.55, for a total value of $683,250.00. Following the completion of the sale, the chief financial officer owned 141,429 shares of the company’s stock, valued at approximately $6,442,090.95. The trade was a 9.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Paula Hansen sold 6,000 shares of the company’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 $273,240.00. Following the transaction, the executive owned 89,972 shares of the company’s stock, valued at $4,097,324.88. This represents a 6.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 76,695 shares of company stock worth $3,476,002 in the last ninety days. Company insiders own 0.59% of the company’s stock.

Docusign Stock Performance Shares of DOCU opened at $54.83 on Monday. Docusign Inc. has a 12 month low of $40.16 and a 12 month high of $86.65. The stock’s 50 day moving average is $48.42 and its two-hundred day moving average is $48.32. The firm has a market cap of $10.47 billion, a P/E ratio of 35.60, a PEG ratio of 1.62 and a beta of 0.90.

Docusign (NASDAQ:DOCU – Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $0.99 by $0.10. The business had revenue of $830.24 million during the quarter, compared to analysts’ expectations of $824.71 million. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The business’s revenue was up 8.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.90 earnings per share. Equities research analysts forecast that Docusign Inc. will post 2.03 EPS for the current year.

Analysts Set New Price Targets A number of equities research analysts have recently commented on the stock. Wells Fargo & Company dropped their price objective on shares of Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research note on Friday, June 5th. Wedbush decreased their target price on shares of Docusign from $60.00 to $58.00 and set a “neutral” rating for the company in a research note on Friday, June 5th. 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 report on Friday, June 5th. Needham & Company LLC restated a “hold” rating on shares of Docusign in a research report on Friday, June 5th. Finally, Citigroup raised their price target on shares of Docusign from $50.00 to $54.00 and gave the company a “neutral” rating in a research report on Friday, June 5th. Three equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $60.27.

Read Our Latest Stock Report on Docusign

About Docusign (Free Report)

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.

Read More Five stocks we like better than Docusign 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion Want to see what other hedge funds are holding DOCU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Docusign Inc. (NASDAQ:DOCU – Free Report).

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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 +26%, compared to the Zacks S&P 500 composite's +1.9% change. During this period, the Zacks Internet - Software industry, which DocuSign falls in, has gained 7.3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather 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.

DocuSign is expected to post earnings of $1.08 per share for the current quarter, representing a year-over-year change of +17.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $4.54 for the current fiscal year indicates a year-over-year change of +18.2%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.13 indicates a change of +12.9% from what DocuSign is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 $868.04 million indicates a year-over-year change of +8.4%. For the current and next fiscal years, $3.49 billion and $3.77 billion estimates indicate +8.5% and +7.9% changes, respectively.

Last Reported Results and Surprise HistoryDocuSign reported revenues of $830.23 million in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $1.09 for the same period compares with $0.9 a year ago.

Compared to the Zacks Consensus Estimate of $824.75 million, the reported revenues represent a surprise of +0.67%. The EPS surprise was +9%.

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.

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 B on this front, indicating that it is trading at a discount 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.

Featuring 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, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that 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.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and 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.

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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall 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) Founded in 2003 and headquartered in San Francisco, Docusign 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 B, and shares are up 11.6% over the past four weeks.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.11 to $4.54 per share. DOCU boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DOCU should be on investors' short list.

DocuSign (DOCU - Free Report) closed at $47.04 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

Shares of the provider of electronic signature technology witnessed a gain of 8.25% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.58%, and the S&P 500's gain of 0.42%.

Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 17.39% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $868.04 million, up 8.42% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.54 per share and a revenue of $3.49 billion, representing changes of +18.23% and +8.53%, respectively, from the prior year.

Any recent changes to analyst estimates for DocuSign should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1% higher within the past month. DocuSign currently has a Zacks Rank of #3 (Hold).

Digging into valuation, DocuSign currently has a Forward P/E ratio of 10.55. For comparison, its industry has an average Forward P/E of 18.63, which means DocuSign is trading at a discount to the group.

Meanwhile, DOCU's PEG ratio is currently 0.63. 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 1.01.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 39% of all 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.