Track market-moving stories before they get noisy

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Ross Stores (ROST - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Ross Stores is one of 189 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ross Stores is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ROST's full-year earnings has moved 7.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ROST has moved about 27.4% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 0.4%. This means that Ross Stores is outperforming the sector as a whole this year.

Tilly's (TLYS - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 166.8%.

In Tilly's' case, the consensus EPS estimate for the current year increased 76.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Ross Stores is a member of the Retail - Discount Stores industry, which includes 7 individual companies and currently sits at #63 in the Zacks Industry Rank. This group has gained an average of 12% so far this year, so ROST is performing better in this area.

In contrast, Tilly's falls under the Retail - Apparel and Shoes industry. Currently, this industry has 40 stocks and is ranked #84. Since the beginning of the year, the industry has moved -3.3%.

Ross Stores and Tilly's could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

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 includes access to the Zacks Style Scores as well.

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 ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum 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 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.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

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: Ross Stores (ROST - Free Report) Based in Dublin, CA, Ross Stores Inc. operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company operates its stores under the Ross Dress for Less (Ross) and dd’s DISCOUNTS names. The company’s stores are located mostly in community and neighborhood shopping centers in heavily populated urban and suburban areas.

ROST is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. ROST has a Growth Style Score of A, forecasting year-over-year earnings growth of 17.1% for the current fiscal year.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.42 to $7.74 per share. ROST boasts an average earnings surprise of +10.2%.

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

US$1 million in business loans disbursed within the first week of deployment.

, /PRNewswire/ -- Adyen, the global financial technology platform of choice for leading businesses, today announced that ROLLER, the leading all-in-one venue management platform for the leisure and attractions industry, has successfully launched ROLLER Capital with Adyen. The integration allows ROLLER to provide its users with fast, flexible business financing directly within its platform, using Capital, Adyen's embedded finance offering.

Photo courtesy of ROLLER The partnership has already seen US$1 million in business loans provisioned during the initial rollout to a select group of customers. This launch enables ROLLER customers – ranging from trampoline parks, family entertainment centers and cultural attractions – to access much-needed financing to invest in upgrades, staff, and inventory without the traditional hurdles of legacy banking. ROLLER first adopted Adyen for Platforms in 2021.

Designed for venues operators who require quick access to working capital, the new offering delivers funding when it's needed most. Key benefits for ROLLER customers include:

Quick access to funds: Venues can view pre-approved offers and request financing in seconds, with funding accessible as soon as the next business day. Payout to external banks typically takes minutes. Simple process, flexible amounts: Business loan offers range from US$500 to US$100,000 (in supported currencies), pre-approved based on sales performance, eliminating the need for lengthy applications or paperwork. Transparent and flexible repayment: Repayment is automatically adjusted as a fixed percentage (ranging from 1% to 15%) of daily sales, meaning venues repay more when they earn more and less when they make less. The loan term is up to nine months, and no early repayments penalties and no late fees. "We applied on Monday morning and it was immediately accepted – we could already see how much we were approved for. The funds were in our account by Thursday. It was a super quick and easy process," said Elena Kaljian, Co-owner of Art Play Cafe, an indoor play center based in Petaluma, California.

ROLLER Capital is now live for all ROLLER customers in the United States, Canada, Australia, the United Kingdom and Ireland, with Finland, the Netherlands, Spain and Sweden to follow, marking a rapid expansion of embedded financial services across the leisure and attractions sector. The global launch coincides with ROLLER's mid-year Product Launch, where the company is showcasing its latest innovations and meeting with venue operators across key markets. The addition of Adyen Capital to the ROLLER ecosystem reinforces ROLLER's position as a market-leading solution that manages everything from ticketing and point-of-sale to embedded capital financing.

"Our venue operators run capital-intensive businesses with sharp seasonal peaks – a trampoline park preparing for school holidays, a family entertainment center investing in upgrades ahead of the holidays. Adyen Capital lets us put working capital in their hands in hours, not weeks, directly inside the platform they already use every day. We've issued over US$1 million in business loans across a small pilot in the U.S. – proof that this is solving a real, urgent problem for our customers." said Chris Rich, VP of Financial Services at ROLLER

"Platforms like ROLLER are at the heart of a venue's operations. By embedding financial services like ROLLER Capital, they are providing massive value to operators at a clear point of need," said Roelant Prins, Chief Commercial Officer at Adyen. "We are thrilled to support ROLLER as they expand this offering globally, helping leisure businesses thrive through simplified access to funding."

ABOUT ADYEN

Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payment capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with brands including H&M, Uber, eBay, and Meta. The cooperation with ROLLER as described in this merchant update underlines Adyen's continuous growth with current and new merchants over the years.

Adyen Capital is provided by Adyen Australia Pty Limited ABN 55 162 682 411. Adyen Capital is offered exclusively for business purposes and not for any personal, domestic or household use. Minimum qualifications and eligibility may change from time to time. Adyen reserves the right to withhold Adyen Capital from users who do not meet minimum qualifications. Please see full terms and conditions.

ABOUT ROLLER

ROLLER is the cloud-based venue management platform for modern attractions, purpose-built to remove friction from the guest experience at every touchpoint. The company's all-in-one platform simplifies its customers' business processes, improving efficiency and maximizing revenue.

ROLLER's comprehensive solution includes: Online Checkout & Ticketing, Point-of-Sale, Integrated Payments, Memberships, Gift Cards, Waivers, Self-Serve Kiosks, Cashless Wallets, Guest Surveys, and more. To learn more, visit roller.software.

SOURCE Adyen; ROLLER

-ROLLER se asocia con Adyen para brindar financiación rápida e integrada a más de 3.000 locales a través de Capital

Se desembolsó 1 millón de dólares en préstamos comerciales durante la primera semana de implementación.

, /PRNewswire/ -- Adyen, la plataforma global de tecnología financiera preferida por las empresas líderes, anunció hoy que ROLLER, la plataforma líder de gestión integral de recintos para el sector del ocio y las atracciones, ha lanzado con éxito ROLLER Capital con Adyen. Esta integración permite a ROLLER ofrecer a sus usuarios financiación empresarial rápida y flexible directamente en su plataforma, utilizando Capital, la solución de financiación integrada de Adyen.

Photo courtesy of ROLLER La alianza ya ha permitido la concesión de 1 millón de dólares en préstamos comerciales durante el lanzamiento inicial a un grupo selecto de clientes. Este lanzamiento permite a los clientes de ROLLER —que incluyen parques de trampolines, centros de entretenimiento familiar y atracciones culturales— acceder a la financiación que tanto necesitan para invertir en mejoras, personal e inventario, sin las trabas tradicionales de la banca convencional. ROLLER adoptó Adyen for Platforms por primera vez en 2021.

Diseñada para operadores de recintos que requieren acceso rápido a capital de trabajo, esta nueva solución proporciona financiación cuando más se necesita. Entre los principales beneficios para los clientes de ROLLER se incluyen:

Acceso rápido a fondos: Los establecimientos pueden consultar ofertas preaprobadas y solicitar financiación en segundos, con acceso a los fondos al siguiente día hábil. El desembolso a bancos externos suele tardar minutos. Proceso sencillo, importes flexibles: Las ofertas de préstamos comerciales oscilan entre 500 y 100.000 dólares (en las divisas admitidas), preaprobadas en función del rendimiento de las ventas, lo que elimina la necesidad de solicitudes extensas o papeleo. Reembolso transparente y flexible: El reembolso se ajusta automáticamente como un porcentaje fijo (entre el 1 y el 15 %) de las ventas diarias, lo que significa que los establecimientos pagan más cuando ganan más y menos cuando ganan menos. El plazo del préstamo es de hasta nueve meses, sin penalizaciones por pago anticipado ni cargos por mora. "Solicitamos el crédito el lunes por la mañana y fue aprobado de inmediato; pudimos ver enseguida el importe aprobado. El jueves recibimos los fondos en nuestra cuenta. Fue un proceso rapidísimo y muy sencillo", declaró Elena Kaljian, copropietaria de Art Play Cafe, un centro de juegos cubierto ubicado en Petaluma, California.

ROLLER Capital ya está disponible para todos los clientes de ROLLER en Estados Unidos, Canadá, Australia, Reino Unido e Irlanda, y próximamente se extenderá a Finlandia, Países Bajos, España y Suecia, lo que supone una rápida expansión de los servicios financieros integrados en el sector del ocio y las atracciones. El lanzamiento global coincide con el lanzamiento de productos de mitad de año de ROLLER, donde la empresa presenta sus últimas innovaciones y se reúne con operadores de recintos en mercados clave. La incorporación de Adyen Capital al ecosistema de ROLLER refuerza su posición como solución líder en el mercado, que gestiona desde la venta de entradas y el punto de venta hasta la financiación de capital integrado.

"Nuestros operadores de espacios de ocio gestionan negocios que requieren una gran inversión de capital y que presentan picos estacionales pronunciados: un parque de trampolines que se prepara para las vacaciones escolares, un centro de entretenimiento familiar que invierte en mejoras antes de las fiestas. Adyen Capital nos permite poner capital circulante en sus manos en cuestión de horas, no semanas, directamente en la plataforma que ya utilizan a diario. Hemos concedido más de un millón de dólares en préstamos comerciales en un pequeño programa piloto en EE.UU., lo que demuestra que esto resuelve un problema real y urgente para nuestros clientes", afirmó Chris Rich, vicepresidente de Servicios Financieros de ROLLER.

"Plataformas como ROLLER son fundamentales para el funcionamiento de un espacio de ocio. Al integrar servicios financieros como ROLLER Capital, aportan un valor inmenso a los operadores en un momento clave de necesidad", declaró Roelant Prins, director comercial de Adyen. "Estamos encantados de apoyar a ROLLER en su expansión global de esta oferta, ayudando a las empresas de ocio a prosperar mediante un acceso simplificado a la financiación".

ACERCA DE ADYEN

Adyen (AMS: ADYEN) es la plataforma de tecnología financiera preferida por las empresas líderes. Al proporcionar capacidades de pago integrales, análisis de datos y productos financieros en una única solución global, Adyen ayuda a las empresas a alcanzar sus objetivos con mayor rapidez. Con oficinas en todo el mundo, Adyen colabora con marcas como H&M, Uber, eBay y Meta. La colaboración con ROLLER, descrita en esta actualización para comerciantes, subraya el continuo crecimiento de Adyen con comerciantes actuales y nuevos a lo largo de los años.

Adyen Capital es proporcionado por Adyen Australia Pty Limited ABN 55 162 682 411. Adyen Capital se ofrece exclusivamente para fines comerciales y no para uso personal, doméstico o familiar. Los requisitos mínimos de elegibilidad pueden cambiar periódicamente. Adyen se reserva el derecho de denegar Adyen Capital a los usuarios que no cumplan con los requisitos mínimos. Consulte los términos y condiciones completos.

ACERCA DE ROLLER

ROLLER es la plataforma de gestión de recintos basada en la nube para atracciones modernas, diseñada específicamente para optimizar la experiencia del visitante en cada punto de contacto. Su plataforma integral simplifica los procesos de negocio de sus clientes, mejorando la eficiencia y maximizando los ingresos.

La solución integral de ROLLER incluye: pago y venta de entradas en línea, punto de venta, pagos integrados, membresías, tarjetas de regalo, exenciones de responsabilidad, quioscos de autoservicio, monederos electrónicos, encuestas de satisfacción del cliente y mucho más. Para obtener más información, visite roller.software.

Foto - https://mma.prnewswire.com/media/2988363/ROLLER_x_Adyen.jpg

US$1 million in business loans disbursed within the first week of deployment.

, /PRNewswire/ -- Adyen, the global financial technology platform of choice for leading businesses, today announced that ROLLER, the leading all-in-one venue management platform for the leisure and attractions industry, has successfully launched ROLLER Capital with Adyen. The integration allows ROLLER to provide its users with fast, flexible business financing directly within its platform, using Capital, Adyen's embedded finance offering.

The partnership has already seen US$1 million in business loans provisioned during the initial rollout to a select group of customers. This launch enables ROLLER customers – ranging from trampoline parks, family entertainment centers and cultural attractions – to access much-needed financing to invest in upgrades, staff, and inventory without the traditional hurdles of legacy banking. ROLLER first adopted Adyen for Platforms in 2021.

Designed for venues operators who require quick access to working capital, the new offering delivers funding when it's needed most. Key benefits for ROLLER customers include:

Quick access to funds: Venues can view pre-approved offers and request financing in seconds, with funding accessible as soon as the next business day. Payout to external banks typically takes minutes.Simple process, flexible amounts: Business loan offers range from US$500 to US$100,000 (in supported currencies), pre-approved based on sales performance, eliminating the need for lengthy applications or paperwork.Transparent and flexible repayment: Repayment is automatically adjusted as a fixed percentage (ranging from 1% to 15%) of daily sales, meaning venues repay more when they earn more and less when they make less. The loan term is up to nine months, and no early repayments penalties and no late fees."We applied on Monday morning and it was immediately accepted – we could already see how much we were approved for. The funds were in our account by Thursday. It was a super quick and easy process," said Elena Kaljian, Co-owner of Art Play Cafe, an indoor play center based in Petaluma, California.

ROLLER Capital is now live for all ROLLER customers in the United States, Canada, Australia, the United Kingdom and Ireland, with Finland, the Netherlands, Spain and Sweden to follow, marking a rapid expansion of embedded financial services across the leisure and attractions sector. The global launch coincides with ROLLER's mid-year Product Launch, where the company is showcasing its latest innovations and meeting with venue operators across key markets. The addition of Adyen Capital to the ROLLER ecosystem reinforces ROLLER's position as a market-leading solution that manages everything from ticketing and point-of-sale to embedded capital financing.

"Our venue operators run capital-intensive businesses with sharp seasonal peaks – a trampoline park preparing for school holidays, a family entertainment center investing in upgrades ahead of the holidays. Adyen Capital lets us put working capital in their hands in hours, not weeks, directly inside the platform they already use every day. We've issued over US$1 million in business loans across a small pilot in the U.S. – proof that this is solving a real, urgent problem for our customers." said Chris Rich, VP of Financial Services at ROLLER

"Platforms like ROLLER are at the heart of a venue's operations. By embedding financial services like ROLLER Capital, they are providing massive value to operators at a clear point of need," said Roelant Prins, Chief Commercial Officer at Adyen. "We are thrilled to support ROLLER as they expand this offering globally, helping leisure businesses thrive through simplified access to funding."

ABOUT ADYEN

Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payment capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with brands including H&M, Uber, eBay, and Meta. The cooperation with ROLLER as described in this merchant update underlines Adyen's continuous growth with current and new merchants over the years.

Adyen Capital is provided by Adyen Australia Pty Limited ABN 55 162 682 411. Adyen Capital is offered exclusively for business purposes and not for any personal, domestic or household use. Minimum qualifications and eligibility may change from time to time. Adyen reserves the right to withhold Adyen Capital from users who do not meet minimum qualifications. Please see full terms and conditions.

ABOUT ROLLER

ROLLER is the cloud-based venue management platform for modern attractions, purpose-built to remove friction from the guest experience at every touchpoint. The company's all-in-one platform simplifies its customers' business processes, improving efficiency and maximizing revenue.

ROLLER's comprehensive solution includes: Online Checkout & Ticketing, Point-of-Sale, Integrated Payments, Memberships, Gift Cards, Waivers, Self-Serve Kiosks, Cashless Wallets, Guest Surveys, and more. To learn more, visit roller.software.

View original content to download multimedia:https://www.prnewswire.com/news-releases/roller-partners-with-adyen-to-empower-over-3-000-venues-with-fast-embedded-financing-through-capital-302782875.html

SOURCE Adyen; ROLLER

, /PRNewswire/ -- Docusign, Inc. (NASDAQ: DOCU) today announced results for its fiscal quarter ended April 30, 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.

"In Q1, we saw continued growing demand for Docusign's AI-native IAM platform with 40,000 customers investing in our rapidly expanding roadmap," said Allan Thygesen, CEO of Docusign. "We delivered significant innovation this quarter while driving strong financial results through durable revenue growth, substantial free cash flow, and record share buybacks."

First Quarter Financial Highlights

Revenue was $830.2 million, a 9% year-over-year increase including approximately 1.6% positive impact from foreign exchange rates. Intelligent Agreement Management ("IAM") represented 12.6% of our total Annual Recurring Revenue ("ARR") as of April 30, 2026, compared to 10.8% of our total ARR as of January 31, 2026. GAAP gross margin was 79.4% for both periods. Non-GAAP gross margin was 81.5% compared to 82.3% in the same period last year. GAAP net income per basic share was $0.40 on 195 million shares outstanding compared to $0.35 on 203 million shares outstanding in the same period last year. GAAP net income per diluted share was $0.40 on 196 million shares outstanding compared to $0.34 on 213 million shares outstanding in the same period last year. Non-GAAP net income per diluted share was $1.09 on 196 million shares outstanding compared to $0.90 on 213 million shares outstanding in the same period last year. Net cash provided by operating activities was $321.7 million compared to $251.4 million in the same period last year. Free cash flow was $289.4 million compared to $227.8 million in the same period last year. Cash, cash equivalents, and investments were $1.0 billion at the end of the quarter. Repurchases of common stock were $317.5 million compared to $183.4 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

AI-Powered Intelligent Agreement Management ("IAM") announcements: In May at our annual Momentum conference, Docusign announced new IAM capabilities powered by Iris, our agreement AI engine:

Iris assistant and agents: Iris is Docusign's AI engine for agreements, which helps teams work smarter, faster, and trigger actions using natural language. Customers can now:

Move faster through reviews: Agents can check agreements against company standards, suggest edits, and automatically request the right approvals in minutes. Keep work moving automatically: Agents can monitor contracts in the background and flag risks, track obligations, and trigger next steps without manual follow-up. Build agents for specific workflows: With Docusign Agent Studio, teams can create and deploy custom agents tailored to how they manage deals, renewals, approvals, and more. Docusign IAM platform ecosystem: Docusign connects agreement work across the systems and teams that run the business. Instead of contracts living in silos, Docusign brings them into the tools people already use:

AI where teams work: Through our open platform and Model Context Protocol (MCP) server, Docusign connects with leading frontier models like Anthropic Claude, Gemini, and OpenAI ChatGPT – so teams can create, review, and manage agreements using natural language within the tools they already use. Deep integrations across business systems: Docusign integrates with core applications like Coupa, Microsoft Copilot, Salesforce, SAP, and Slack – so agreement workflows happen seamlessly across systems teams use every day, from triggering actions to surfacing completed agreements and the insights they contain. A connected legal AI ecosystem: Docusign is also partnering with leading legal AI platforms, including Harvey, Legora, and CoCounsel by Thomson Reuters. These integrations will bring legal research, document analysis, and contract review directly into agreement workflows across sales, procurement, HR, and finance. Docusign IAM platform end-to-end workflows:

IAM for HR: Employee agreements span the entire lifecycle, from hiring to role changes, but the work behind them is often fragmented and manual. IAM for HR spans the often manual HR lifecycle from hiring to role changes. Mobile I-9 verification simplifies compliance, while integrations with HCM platforms help HR teams move faster and improve the employee experience from day one onward. IAM for Sales: IAM for Sales brings the full agreement lifecycle directly into CRMs like HubSpot, Microsoft Dynamics 365, and Salesforce. New CRM-embedded experiences for Agreement Desk, Agreement Prep, and Agreement Manager keep workflows, collaboration, and signed agreements connected in one place. Instant Form Creation for Customer Experience:  AI-powered Web Forms transform static documents into interactive, shareable forms in seconds, so people can complete them quickly without manual re-entry. Executive Appointment: Docusign announced Graham Sheldon as its incoming Chief Product Officer. Most recently, Sheldon served as Chief Product Officer at UiPath Inc., a leading enterprise-grade agentic automation platform. Before that, Sheldon spent more than 20 years at Microsoft Corp., including as Corporate Vice President of Product for Microsoft Teams.

Guidance

The company currently expects the following guidance:

(in millions, except percentages)

Three Months Ended
July 31, 2026

YoY
Midpoint
Change

Revenue [1]

$865

to

$869

8 %

Non-GAAP gross margin

81.5 %

to

81.7 %

NA

Non-GAAP operating margin

29.7 %

to

30.2 %

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]

$3,490

to

$3,502

9 %

Annual recurring revenue year-over-year growth rate

8.25 %

to

8.75 %

8.50 %

Non-GAAP gross margin

81.5 %

to

82.0 %

NA

Non-GAAP operating margin

30.5 %

to

31.0 %

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 1.4% points lower for the quarter ending July 31, 2026 and 1.3% points lower for the fiscal year ending January 31, 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 on June 4, 2026 at 2:00 p.m. PDT (5:00 p.m. EDT) to discuss its financial results. A live webcast of the event will be available on the Docusign Investor Relations website at investor.docusign.com. Prepared remarks and the news release with the financial results will also be accessible on Docusign's website prior to the webcast. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (EDT) June 18, 2026 using the passcode 13760337.

About Docusign

Docusign brings agreements to life. Nearly 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 April 30, 2026, which we expect to file on June 5, 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 the three months ended April 30, 2026 and 2025, we have determined the projected non-GAAP tax rate to be 21% and 20%, respectively.

Free cash flow: We define free cash flow as net cash provided by operating activities less purchases of property and equipment. 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. 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
April 30,

(in thousands, except per share data)

2026

2025

Revenue

$   830,235

$   763,654

Cost of revenue

171,270

157,269

Gross profit

658,965

606,385

Operating expenses:

Sales and marketing

296,175

296,413

Research and development

159,586

159,447

General and administrative

91,895

90,270

Total operating expenses

547,656

546,130

Income from operations

111,309

60,255

Interest expense

(551)

(478)

Interest income and other income, net

6,998

14,013

Income before provision for income taxes                                                                                                    

117,756

73,790

Provision for income taxes

39,559

1,703

Net income

$     78,197

$     72,087

Net income per share attributable to common stockholders:

Basic

$         0.40

$         0.35

Diluted

$         0.40

$         0.34

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

Basic

195,489

203,280

Diluted

196,480

212,812

Stock-based compensation expense included in costs and expenses:

Cost of revenue

15,309

16,904

Sales and marketing

43,026

46,085

Research and development

54,476

54,431

General and administrative

28,566

28,176

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

April 30, 2026

January 31, 2026

Assets

Current assets

Cash and cash equivalents

$            548,027

$            602,442

Investments—current

266,152

264,084

Accounts receivable, net

300,684

516,429

Contract assets—current

8,024

10,782

Prepaid expenses and other current assets

132,729

97,101

Total current assets

1,255,616

1,490,838

Investments—noncurrent

209,897

208,393

Property and equipment, net

387,946

361,808

Operating lease right-of-use assets

160,090

165,578

Goodwill

459,148

458,446

Intangible assets, net

56,659

61,394

Deferred contract acquisition costs—noncurrent

468,452

474,628

Deferred tax assets—noncurrent

805,136

835,245

Other assets—noncurrent

181,061

173,220

Total assets

$         3,984,005

$         4,229,550

Liabilities and Equity

Current liabilities

Accounts payable

$              23,970

$              17,419

Accrued expenses and other current liabilities                                                                                        

108,002

113,358

Accrued compensation

175,575

260,840

Contract liabilities—current

1,564,942

1,631,168

Operating lease liabilities—current

16,055

16,623

Total current liabilities

1,888,544

2,039,408

Contract liabilities—noncurrent

29,735

29,956

Operating lease liabilities—noncurrent

167,278

168,496

Deferred tax liability—noncurrent

24,205

21,507

Other liabilities—noncurrent

54,495

52,363

Total liabilities

2,164,257

2,311,730

Stockholders' equity

Common stock

19

20

Additional paid-in capital

3,920,519

3,777,995

Accumulated other comprehensive loss

(3,960)

(3,712)

Accumulated deficit

(2,096,830)

(1,856,483)

Total stockholders' equity

1,819,748

1,917,820

Total liabilities and equity

$         3,984,005

$         4,229,550

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended
April 30,

(in thousands)

2026

2025

Cash flows from operating activities:

Net income

$   78,197

$   72,087

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

Depreciation and amortization

32,208

30,369

Amortization of deferred contract acquisition and fulfillment costs

67,358

66,482

Non-cash operating lease costs

4,864

4,660

Stock-based compensation expense

141,377

145,596

Deferred income taxes

33,032

(3,465)

Other

1,920

1,861

Changes in operating assets and liabilities:

Accounts receivable

214,448

121,003

Prepaid expenses and other current assets

(31,832)

(28,551)

Deferred contract acquisition and fulfillment costs

(65,491)

(56,648)

Other assets

2,320

844

Accounts payable

3,222

(6,764)

Accrued expenses and other liabilities

(5,460)

4,625

Accrued compensation

(88,415)

(61,451)

Contract liabilities

(65,553)

(34,240)

Operating lease liabilities

(507)

(4,969)

Net cash provided by operating activities

321,688

251,439

Cash flows from investing activities:

Purchases of marketable securities

(97,408)

(92,563)

Maturities of marketable securities

93,024

91,262

Purchases of strategic and other investments

(2,610)

—

Purchases of property and equipment

(32,253)

(23,624)

Net cash used in investing activities

(39,247)

(24,925)

Cash flows from financing activities:

Repurchases of common stock

(317,510)

(183,431)

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

(39,536)

(62,793)

Proceeds from exercise of stock options

53

699

Proceeds from employee stock purchase plan

22,799

22,010

Other

(220)

—

Net cash used in financing activities

(334,414)

(223,515)

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

(481)

9,923

Net increase (decrease) in cash, cash equivalents and restricted cash

(52,454)

12,922

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

618,150

659,554

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

$ 565,696

$ 672,476

(1) Cash, cash equivalents and restricted cash included restricted cash of $17.7 million and $15.7 million at April 30, 2026 and January 31, 2026.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

Reconciliation of gross profit and gross margin:

Three Months Ended
April 30,

(in thousands)

2026

2025

GAAP gross profit

$    658,965

$     606,385

Add: Stock-based compensation

15,309

16,904

Add: Employer payroll tax on employee stock transactions

1,126

1,873

Add: Amortization of acquisition-related intangibles

1,495

3,565

Non-GAAP gross profit

$    676,895

$     628,727

GAAP gross margin

79.4 %

79.4 %

Non-GAAP adjustments

2.1 %

2.9 %

Non-GAAP gross margin

81.5 %

82.3 %

Reconciliation of operating expenses:

Three Months Ended
April 30,

(in thousands)

2026

2025

GAAP sales and marketing

$    296,175

$     296,413

Less: Stock-based compensation

(43,026)

(46,085)

Less: Employer payroll tax on employee stock transactions

(2,470)

(3,940)

Less: Amortization of acquisition-related intangibles

(3,240)

(3,354)

Non-GAAP sales and marketing

$    247,439

$     243,034

GAAP sales and marketing as a percentage of revenue

35.7 %

38.8 %

Non-GAAP sales and marketing as a percentage of revenue

29.8 %

31.8 %

GAAP research and development

$    159,586

$     159,447

Less: Stock-based compensation

(54,476)

(54,431)

Less: Employer payroll tax on employee stock transactions

(3,687)

(5,081)

Non-GAAP research and development

$    101,423

$       99,935

GAAP research and development as a percentage of revenue

19.2 %

20.9 %

Non-GAAP research and development as a percentage of revenue                                                             

12.2 %

13.1 %

GAAP general and administrative

$      91,895

$       90,270

Less: Stock-based compensation

(28,566)

(28,176)

Less: Employer payroll tax on employee stock transactions

(902)

(1,365)

Non-GAAP general and administrative

$      62,427

$       60,729

GAAP general and administrative as a percentage of revenue

11.1 %

11.8 %

Non-GAAP general and administrative as a percentage of revenue

7.5 %

7.9 %

Reconciliation of income from operations and operating margin:

Three Months Ended
April 30,

(in thousands)

2026

2025

GAAP income from operations

$    111,309

$      60,255

Add: Stock-based compensation

141,377

145,596

Add: Employer payroll tax on employee stock transactions

8,185

12,259

Add: Amortization of acquisition-related intangibles

4,735

6,919

Non-GAAP income from operations

$    265,606

$    225,029

GAAP operating margin

13.4 %

7.9 %

Non-GAAP adjustments

18.6 %

21.6 %

Non-GAAP operating margin

32.0 %

29.5 %

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

Three Months Ended
April 30,

(in thousands, except per share data)

2026

2025

GAAP net income

$      78,197

$      72,087

Add: Stock-based compensation

141,377

145,596

Add: Employer payroll tax on employee stock transactions

8,185

12,259

Add: Amortization of acquisition-related intangibles

4,735

6,919

Add: Income tax and other tax adjustments

(17,572)

(46,010)

Non-GAAP net income attributable to common stockholders

$    214,922

$     190,851

Numerator:

Non-GAAP net income attributable to common stockholders

$    214,922

$     190,851

Denominator:

Weighted-average common shares outstanding, basic

195,489

203,280

Effect of dilutive securities

991

9,532

Non-GAAP weighted-average common shares outstanding, diluted

196,480

212,812

GAAP net income per share, basic

$          0.40

$          0.35

GAAP net income per share, diluted

$          0.40

$          0.34

Non-GAAP net income per share, basic

$          1.10

$          0.94

Non-GAAP net income per share, diluted

$          1.09

$          0.90

Computation of free cash flow:

Three Months Ended
April 30,

(in thousands)

2026

2025

Net cash provided by operating activities

$    321,688

$    251,439

Less: Purchases of property and equipment

(32,253)

(23,624)

Non-GAAP free cash flow

$    289,435

$    227,815

Net cash used in investing activities

$     (39,247)

$     (24,925)

Net cash used in financing activities

$   (334,414)

$   (223,515)

SOURCE Docusign, Inc.

Docusign shares are seeing increased attention. Why is DOCU stock trending? DocuSign Q1 HighlightsDocusign posted first-quarter revenue of $830.2 million, beating the consensus estimate of $824.77 million, according to Benzinga Pro. The agreement management company reported adjusted earnings of $1.09 per share for the quarter, beating analyst estimates of 99 cents per share.

Total revenue was up 9% year-over-year. Net cash from operations totaled $321.7 million, and free cash flow came in at $289.4 million in the quarter.

Docusign said it repurchased $317.5 million of its common stock during the quarter. The company ended the period with approximately $1 billion in cash, cash equivalents and investments.

“In Q1, we saw continued growing demand for Docusign’s AI-native IAM platform with 40,000 customers investing in our rapidly expanding roadmap,” said Allan Thygesen, CEO of Docusign. “We delivered significant innovation this quarter while driving strong financial results through durable revenue growth, substantial free cash flow, and record share buybacks.”

Docusign expects second-quarter revenue to be in the range of $865 million to $869 million, versus estimates of $866.08 million. The company also raised its full-year revenue guidance from a range of $3.484 billion to $3.496 billion to a new range of $3.49 billion to $3.502 billion, versus estimates of $3.49 billion.

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

DOCU Shares Stumble After HoursDOCU Price Action: Docusign shares were down 4.02% in after-hours, trading at $48.85 at the time of publication on Thursday, according to Benzinga Pro.

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These 3 Beaten-Down Stocks Just Announced Massive Share BuybacksDocusign NASDAQ: DOCU reported 9% year-over-year revenue growth in the first quarter of fiscal 2027 and said adoption of its AI-native Intelligent Agreement Management platform, or IAM, continued to expand across its customer base.

CEO Allan Thygesen said on the company’s earnings call that Docusign began the fiscal year with “continued strong demand” for IAM, which he described as the company’s AI-native platform for managing agreements across enterprises. Thygesen said 40,000 companies have invested in IAM, and the platform generated 12.6% of total company annual recurring revenue, up from 10.8% in the prior quarter.

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AI Is Separating Software Winners From Losers, 2 Experts ExplainFor the quarter, revenue was $830 million, up 9% from a year earlier. CFO Blake Grayson said foreign exchange rates provided an approximately 1.6 percentage point benefit. International revenue represented 31% of total revenue.

Non-GAAP operating income was $266 million, up 18% year-over-year, while non-GAAP operating margin reached 32.0%, compared with 29.5% in the year-ago quarter. Free cash flow was $289 million, representing a 35% margin. Docusign repurchased $318 million of stock during the quarter, which Grayson said was the largest quarterly repurchase in the company’s history.

IAM becomes larger share of recurring revenue The Cloud Computing ETF Every Growth Investor Should ConsiderThygesen said Docusign’s strategy for fiscal 2027 centers on two priorities: delivering end-to-end agreement workflows for customers and expanding the company’s AI, data and orchestration advantages. He said customers are increasingly recognizing the value of a unified AI agreement platform rather than “isolated department-level point products.”

Grayson said IAM slightly outperformed the company’s expectations in the quarter and that bookings grew faster year-over-year in North America Enterprise than in any other segment. The company remains on track for IAM to represent approximately 18% of total ARR at the end of fiscal 2027, which would put IAM at more than $600 million in ARR, according to Grayson.

Docusign also reiterated its expectation for total ARR growth of 8.25% to 8.75% in fiscal 2027, or 8.5% at the midpoint, reaching more than $3.5 billion by the end of the fiscal fourth quarter. Grayson said growth is expected to come from gross new bookings, primarily from new and expanding IAM customers, as well as improvements in gross retention.

AI products and partnerships highlighted Thygesen pointed to a series of product announcements and partnerships introduced at Docusign’s Momentum customer event. The company launched legal-specific contract assistants and agents designed to triage, review and move documents toward closing, using knowledge of a company’s past negotiations and internal policies.

Docusign also expanded integrations with several AI and legal technology providers. Thygesen cited a deeper partnership with Anthropic that integrates IAM with Claude’s legal tools, as well as integrations with Harvey, Legora and CoCounsel Legal by Thomson Reuters. In procurement, Docusign partnered with Coupa, while its IAM for HR product connects Workday and Greenhouse to the platform. The company also announced Slack integration through its Salesforce partnership and payments integration through Stripe.

Thygesen said Docusign’s AI engine, Iris, combines frontier large language model capabilities with Docusign’s agreement data and workflow expertise. He said hundreds of millions of consented private agreements have been ingested into IAM, with millions more added each week. He also said Docusign believes it can achieve up to a 15 percentage point improvement in precision and recall compared with models trained on public contract data, while reducing AI processing costs by more than 50 times compared with direct prompts on large language models.

The company introduced pre-built agents in Iris, custom agents through Docusign Agent Studio and third-party agent connections through its MCP server to Anthropic Claude, Google Gemini and OpenAI ChatGPT. Thygesen said there had been “unprecedented” inbound interest in the MCP connector beta, with thousands of people signing up.

Customer and operating metrics improve Grayson said dollar net retention for direct customers was above 102%, improving by more than one percentage point from the first quarter of fiscal 2026. He said the metric has improved sequentially for seven consecutive quarters, supported by retention gains and IAM adoption.

Total customer growth remained at 9% year-over-year, with Docusign approaching 1.9 million total customers. Grayson said envelope sends continued to grow year-over-year, while consumption rose to multiyear highs across most tracked customer segments and verticals.

The number of customers spending more than $300,000 in annual contract value rose to 1,258, up 12% year-over-year. Grayson said it was the first time in three years that this metric delivered double-digit growth, and he cited early positive IAM adoption trends among larger customers.

Thygesen also highlighted customer examples. Experian partnered with Docusign to improve seller productivity and speed client contract cycles, while HSBC introduced IAM to digitize and simplify its credit lending process. Crete United reduced contract negotiation times by 80% and improved deal execution speed by 90% using AI-assisted review, according to Thygesen. Milky Moo, a milkshake franchisor with more than 800 stores in Brazil, used Docusign AI to track renewals and saved more than 1,000 hours of manual work last year.

Guidance and capital allocation For the second quarter, Docusign expects revenue of $865 million to $869 million, representing 8% year-over-year growth at the midpoint. For fiscal 2027, the company expects revenue of $3.490 billion to $3.502 billion, or 9% growth at the midpoint.

Docusign guided for non-GAAP gross margin of 81.5% to 81.7% in the second quarter and 81.5% to 82.0% for the full fiscal year. Non-GAAP operating margin is expected to be 29.7% to 30.2% in the second quarter and 30.5% to 31.0% for fiscal 2027, an increase of 0.5 percentage points at the midpoint compared with prior guidance.

Grayson said the company ended the quarter with approximately $1 billion of cash, equivalents and investments, and no debt. After the first-quarter repurchases, Docusign had $2.4 billion remaining under its buyback authorization. Diluted weighted average shares outstanding fell 8% year-over-year to 196.5 million.

Non-GAAP diluted earnings per share were $1.09, up from $0.90 a year earlier. GAAP diluted EPS was $0.40, compared with $0.34 in the year-ago quarter.

Docusign also announced that Graham Sheldon joined as chief product officer after serving as chief product officer at UiPath and previously spending more than 20 years at Microsoft. Thygesen thanked outgoing Chief Product Officer Dmitri Krakovsky for his role in building IAM’s foundation.

About Docusign NASDAQ: DOCUDocuSign, 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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Should You Invest $1,000 in Docusign Right Now?Before you consider Docusign, you'll want to hear this.

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DocuSign Inc (NASDAQ:DOCU) shares fell nearly 5% on Friday after the electronic signature company reported first-quarter results that topped analyst estimates but offered full-year guidance that failed to impress investors.

The San Francisco-based company posted Q1 fiscal 2027 revenue of $830.2 million, above the $823.23 million consensus estimate and up 9% from a year earlier. Adjusted earnings per share came in at $1.09, beating the $1 estimate.

Despite the earnings beat, shares declined 4.9% in Friday morning trading.

For the full fiscal year, DocuSign guided revenue of $3.49 billion to $3.502 billion, roughly in line with the $3.49 billion analyst consensus, representing 9% annual growth. The company projected non-GAAP operating margin of 30.5% to 31% and non-GAAP gross margin of 81.5% to 82%.

Second-quarter revenue guidance of $865 million to $869 million, against a consensus estimate of $866 million, implied 8% year-over-year growth.

DocuSign reported free cash flow of $289.4 million for the quarter, with operating cash flow of $321.7 million. The company returned $317.5 million to shareholders through buybacks and held $1.0 billion in cash, equivalents and investments at quarter-end.

The company's Intelligent Agreement Management platform continued to gain traction, with IAM now representing 12.6% of annual recurring revenue, up from 10.8% the prior quarter. Some 40,000 customers are now investing in the IAM roadmap.

DocuSign also named Graham Sheldon as incoming chief product officer.

DocuSign Inc (NASDAQ:DOCU) shares fell nearly 5% on Friday after the electronic signature company reported first-quarter results that topped analyst estimates but offered full-year guidance that failed to impress investors.

The San Francisco-based company posted Q1 fiscal 2027 revenue of $830.2 million, above the $823.23 million consensus estimate and up 9% from a year earlier. Adjusted earnings per share came in at $1.09, beating the $1 estimate.

Despite the earnings beat, shares declined 4.9% in Friday morning trading.

For the full fiscal year, DocuSign guided revenue of $3.49 billion to $3.502 billion, roughly in line with the $3.49 billion analyst consensus, representing 9% annual growth. The company projected non-GAAP operating margin of 30.5% to 31% and non-GAAP gross margin of 81.5% to 82%.

Second-quarter revenue guidance of $865 million to $869 million, against a consensus estimate of $866 million, implied 8% year-over-year growth.

DocuSign reported free cash flow of $289.4 million for the quarter, with operating cash flow of $321.7 million. The company returned $317.5 million to shareholders through buybacks and held $1.0 billion in cash, equivalents and investments at quarter-end.

The company's Intelligent Agreement Management platform continued to gain traction, with IAM now representing 12.6% of annual recurring revenue, up from 10.8% the prior quarter. Some 40,000 customers are now investing in the IAM roadmap.

DocuSign also named Graham Sheldon as incoming chief product officer.

Shares of DocuSign Inc. DOCU moved lower on Friday after the electronic signature and agreement management software provider offered guidance that left investors looking for stronger signs of accelerating growth.

DocuSign stock fell 6% in trading, extending a three-session losing streak and putting the shares down more than 12% for the week.

The decline came despite better-than-expected revenue and earnings, as analysts focused on a forward outlook that largely matched existing market expectations.

Earnings beat but guidance remains measuredFor the fiscal first quarter, DocuSign reported revenue of $830.2 million, up 9% from a year earlier and above analyst estimates of roughly $824 million.

Adjusted earnings came in at $1.09 per share, beating consensus expectations of approximately $0.99 to $1.00 per share.

The company also delivered strong profitability metrics. Operating margin reached 32%, while free cash flow margin stood at 35%. Net cash provided by operating activities totaled $321.7 million, and free cash flow came in at $289.4 million.

DocuSign repurchased approximately $318 million of its common stock during the quarter, marking the largest quarterly share buyback in the company's history.

Looking ahead, management forecast second-quarter revenue between $865 million and $869 million, broadly in line with analyst expectations of about $866 million.

The company also raised its fiscal 2027 revenue guidance to a range of $3.49 billion to $3.502 billion from its previous outlook of $3.484 billion to $3.496 billion. Analysts had been expecting revenue of roughly $3.49 billion.

Despite the increase, several analysts suggested the revised guidance did not meaningfully change the company's long-term growth outlook.

A key focus for investors remains DocuSign's Intelligent Agreement Management (IAM) platform, which integrates artificial intelligence into agreement workflows.

The company said IAM is now used by around 40,000 customers and represents 12.6% of annual recurring revenue, up from 10.8% at the end of January.

DocuSign has expanded the platform through partnerships with AI companies, including Anthropic and OpenAI, while management highlighted growing enterprise adoption from customers such as Experian and HSBC. 

The company expects IAM to account for about 18% of annual recurring revenue by the end of fiscal 2027 and believes broader AI adoption, expanding platform usage, and improved customer retention will help accelerate recurring revenue growth during the year.

Chief Executive Officer Allan Thygesen said, "In Q1, we saw continued growing demand for DocuSign’s AI-native IAM platform with 40,000 customers investing in our rapidly expanding roadmap." 

"We delivered significant innovation this quarter while driving strong financial results through durable revenue growth, substantial free cash flow, and record share buybacks."

Analysts remain cautious on long-term growthAlthough analysts generally viewed the quarter as operationally solid, many maintained a cautious stance on the pace at which IAM can drive a broader growth reacceleration.

Morgan Stanley wrote that "DOCU showed solid Q1 execution, strong margins/FCF and steady IAM progress, but the debate is unchanged: IAM traction is improving, yet financial inflection is limited and economics remain too opaque to prove a durable path back to double-digit growth."

Wolfe Research echoed similar concerns, stating: "While IAM outperformed expectations and enterprise traction improved, Dollar Net Retention (DNR) remained flat at 102%, and leaves us waiting for clearer evidence IAM can drive a sustained growth recovery."

The mixed analyst reaction reflected the broader market view that while DocuSign continues to execute well operationally and build momentum around its AI strategy, investors are still waiting for clearer evidence that those investments can translate into sustained double-digit growth.

Docusign (DOCU +1.05%) used to be known for its e-signature and digital contract management software that allowed thousands of businesses to continue making deals at the height of the pandemic, when lockdowns and social restrictions prevented travel. As a result, its stock soared to an all-time high of $310 in late 2021, a tenfold increase from its 2018 initial public offering (IPO) price of $29.

But demand cooled for Docusign's platform after 2022 as social conditions mostly returned to normal, causing a sharp slowdown in the company's revenue growth. Its stock now trades at just $48 as I write this, which is 84% below its 2021 peak.

However, that might present an opportunity for long-term investors: In 2024 Docusign launched a new platform, powered by artificial intelligence (AI), called Intelligent Agreement Management (IAM), which completely transforms contract management processes for businesses. It's already experiencing strong demand, and it could be the bullish catalyst Docusign needs for a long-term turnaround.

Image source: Getty Images.

IAM is a powerful enterprise platform In 2024, global consulting network Deloitte conducted a study that found businesses waste over 55 billion hours each year due to inefficient agreement management processes, resulting in $2 trillion in lost economic value. IAM was built to solve that very problem.

One of IAM's most powerful resources is called Navigator, a digital repository where businesses have already collectively stored millions of agreements. It uses AI to extract important information from every document and then makes that discoverable via a search function, so employees no longer have to spend hours digging through contracts manually. It also uses AI to track expiration dates, so management can stop auto-renewals for contracts they no longer need, or get ahead of sales agreements that are about to lapse.

Then there is AI-Assisted Review, which uses an organization's preset standards to autonomously identify risks and opportunities in every agreement. Docusign says one of its customers, Crete United, used this tool to reduce contract negotiation times by 80% and improve deal execution speed by 90%.

As of April 30, the end of Docusign's fiscal 2027 first quarter, IAM accounted for just 12.6% of the company's total annual recurring revenue (ARR). That was up from 10.8% in the fourth quarter of fiscal 2026, just three months earlier, but it's clear there's still a long runway for growth.

Steady growth on the top and bottom lines Docusign generated $830.2 million in revenue during the fiscal 2027 first quarter, which topped management's forecast range of $822 million to $826 million. That was a modest growth rate of 9%, so the company certainly isn't shooting the lights out right now -- especially compared to five years ago, when quarterly sales growth was regularly above 40%.

However, management is sacrificing some top-line growth to focus more on profitability so it can build a more sustainable business for the long term. Total operating expenses were flat during the first quarter, with a small reduction in marketing spending, typically a growth-oriented cost.

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As a result, Docusign managed to generate a profit based on generally accepted accounting principles (GAAP) of $78.2 million for the period, which was a year-over-year increase of 8%. After excluding one-off and noncash expenses like stock-based compensation, the company delivered a much bigger adjusted (non-GAAP) profit of $214.9 million.

Docusign could give up some of its profits by investing more heavily in areas like research and development (R&D) and marketing, which would likely lead to faster revenue growth. This is a useful lever that management could pull in the future.

Docusign stock is attractively valued right now Docusign is currently trading at a price-to-sales (P/S) ratio of 3.1, which is a steep discount to its long-term average of 12.1 dating back to its IPO. The stock looks quite attractive from that perspective.

DOCU PS Ratio data by YCharts.

Based on trailing-12-month GAAP earnings of $1.57 per share, Docusign's price-to-earnings (P/E) ratio is 30.9. That's a discount to the Nasdaq-100 index, which is trading at a P/E of 35.2, so Docusign is slightly cheaper than the broader technology market right now.

Therefore, as IAM becomes a larger part of the company's revenue, I think Docusign's current stock price offers investors an attractive long-term entry point.

Key Takeaways DOCU beat Q1 fiscal 2027 earnings and revenue estimates, driven by IAM adoption and demand growth.DOCU stated that IAM reached 12.6% of total ARR, up from 10.8% in the prior quarter.DOCU raised its full-year fiscal 2027 operating margin outlook and expects IAM to reach about 18% of ARR. Docusign (DOCU - Free Report) reported impressive first-quarter fiscal 2027 results, with both earnings and revenues beating the Zacks Consensus Estimate, driven by continued adoption of its Intelligent Agreement Management (IAM) platform and solid profitability.

The company’s first-quarter fiscal 2027 adjusted earnings of $1.09 per share beat the Zacks Consensus Estimate by 9% and increased 21.1% year over year. Revenues of $830.2 million surpassed the consensus estimate by 0.7% and rose 8.7% year over year.

However, the better-than-expected results failed to impress the market, as the stock has declined 7.2% since the earnings release on June 4, due to skepticism among shareholders.

DOCU Sees Broad-Based Revenue GrowthFirst-quarter revenues reached $830.2 million, driven by steady customer demand and approximately 1.6 percentage points of favorable foreign-exchange impact. International markets remained an important growth driver, with overseas operations accounting for 31% of total revenues.

Management noted that customer activity remained healthy across the business. Total customer count approached 1.9 million, while envelope volume continued to grow year over year. Consumption trends improved across most customer segments and vertical markets, supporting management’s confidence in accelerating annual recurring revenue (ARR) growth during fiscal 2027.

Docusign Gains Traction With IAM PlatformIAM continued emerging as Docusign’s primary growth initiative. The company reported that 40,000 customers invested in the platform and IAM bookings in North American enterprise accounts grew faster than in any other customer segment during this quarter.

The company 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 Docusign’s competitive position in agreement management.

A notable highlight was IAM’s growing contribution to the business in this quarter. The platform represented 12.6% of total ARR, up from 10.8% at the end of the prior quarter, reflecting rising customer adoption.

DOCU Delivers Strong ProfitabilityProfitability remained a key strength. Non-GAAP operating income rose 18% year over year to $266 million, while operating margin expanded 250 basis points to 32%. Results benefited from higher revenues, disciplined spending, increased capitalization of development costs and an insurance-related legal reimbursement.

Non-GAAP gross margin was 81.5% compared with 82.3% in the year-earlier period. Although cloud migration investments continued to pressure margins modestly, results came in ahead of management’s expectations.

Docusign Generates Robust Cash FlowThe company continued to generate strong cash flow. Net cash provided by operating activities totaled $321.7 million compared with $251.4 million in the prior-year quarter. Free cash flow increased to $289.4 million from $227.8 million a year earlier.

Docusign ended the quarter with approximately $1 billion in cash, cash equivalents and investments with no debt. The company repurchased $317.5 million of stock during the quarter, marking the largest quarterly buyback in its history. Management indicated that capital returns remain a priority, with $2.4 billion remaining under its share repurchase authorization at quarter-end.

DOCU Raises Confidence With Fiscal 2027 OutlookFor the second quarter of fiscal 2027, Docusign expects revenues to be between $865 million and $869 million, with the midpoint of $867 million being above the Zacks Consensus Estimate of $866.4 million. The company projects non-GAAP gross margin of 81.5% to 81.7% and non-GAAP operating margin of 29.7% to 30.2%.

For fiscal 2027, management reaffirmed revenue guidance of $3.49-$3.502 billion. The Zacks Consensus Estimate for the same is pegged at $3.49 billion. DOCU expects ARR growth to be in the range of 8.25% to 8.75%. IAM is projected to represent approximately 18% of total ARR by year-end, implying more than $600 million in ARR from the platform. The company also raised its full-year non-GAAP operating margin outlook to 30.5-31.0%, underscoring confidence in growth and operating efficiency.

Currently, Docusign carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings SnapshotsAccenture plc (ACN - Free Report) reported impressive second-quarter fiscal 2026 results.

ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion topped the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.

Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues outpacing the Zacks Consensus Estimate.

ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.

Docusign, Inc. delivered strong Q1 '27 results, beating both revenue and earnings estimates despite a subsequent 7% share price decline. Revenues and annual recurring revenue continue to grow, supported by expanding enterprise IAM adoption and a robust margin profile. Non-GAAP operating income and free cash flow margins improved year-over-year, highlighting DOCU's profitability and operational efficiency in the document lifecycle market.

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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 A, and shares are up 0.1% over the past four weeks.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.10 to $4.53 per share. DOCU also 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.

ZIM Integrated Shipping Services (ZIM - Free Report) ended the recent trading session at $26.24, demonstrating a -1.2% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.59%.

Shares of the container shipping company have appreciated by 2.47% over the course of the past month, underperforming the Transportation sector's gain of 9.83%, and the S&P 500's gain of 9.33%.

Analysts and investors alike will be keeping a close eye on the performance of ZIM Integrated Shipping Services in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.22, indicating a 108.98% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, down 20.58% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of -$7.24 per share and a revenue of $5.87 billion, demonstrating changes of -335.06% and -14.91%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ZIM Integrated Shipping Services. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.41% rise in the Zacks Consensus EPS estimate. Currently, ZIM Integrated Shipping Services is carrying a Zacks Rank of #3 (Hold).

The Transportation - Shipping industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.

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

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

ZIM Integrated Shipping Services is downgraded to hold following its FQ4 2025 earnings report and dividend declaration. ZIM's revenues fell 32% YoY, with freight rates and volumes both declining, and the company suspended 2026 guidance amid the Hapag-Lloyd buyout. Dividend sustainability is in question, as the latest payout exceeds organic earnings and the dividend cushion ratio has sharply deteriorated to 1.23x.

ZIM Integrated Shipping Services (ZIM - Free Report) closed at $26.44 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 1.02% gain on the day. Meanwhile, the Dow experienced a rise of 1.62%, and the technology-dominated Nasdaq saw an increase of 0.89%.

The stock of container shipping company has risen by 0.23% in the past month, lagging the Transportation sector's gain of 5.9% and the S&P 500's gain of 12.23%.

Investors will be eagerly watching for the performance of ZIM Integrated Shipping Services in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 20, 2026. It is anticipated that the company will report an EPS of -$0.22, marking a 108.98% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.59 billion, reflecting a 20.58% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$7.24 per share and revenue of $5.87 billion, which would represent changes of -335.06% and -14.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ZIM Integrated Shipping Services. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.41% increase. ZIM Integrated Shipping Services presently features a Zacks Rank of #3 (Hold).

The Transportation - Shipping industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 40% of over 250 industries.

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

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

ZIM (ZIM) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.

ZIM (ZIM) remains a Buy, with a scenario-weighted price target of $33.33, reflecting a 19.1% upside and compelling risk/reward in a special situation. The Hapag-Lloyd $35/share merger faces significant Israeli regulatory hurdles, but the Sakal Group's $37.50/share bid may pressure for a higher offer or faster resolution. Key Q1 metrics to monitor include cash/liquidity (critical floor at $1.7B), average freight rate per TEU, trade-lane mix, and regulatory progress.

Key Takeaways ZIM to report Q1 2026 on May 20 premarket; consensus points to a 22 cent per-share loss. Rising voyage, fuel costs tied to Middle East unrest may weigh on ZIM's bottom line. ZIM's call may address tariff concerns and a $4.5B bid challenging a Hapag-Lloyd/FIMI deal. ZIM Integrated Shipping Services (ZIM - Free Report) is set to report first-quarter 2026 results on May 20, before the market opens.  

The Zacks Consensus Estimate for the to-be-reported quarter has narrowed to a loss of 22 cents per share over the past 60 days. In the year-ago quarter, ZIM reported EPS of $2.45. Currently, the Zacks Consensus Estimate for quarterly revenues is pegged at $1.59 billion, indicating a year-over-year decrease of 20.6%.

Image Source: Zacks Investment Research

For 2026, the Zacks Consensus Estimate for ZIM’s revenues is pegged at $5.87 billion, implying a contraction of 14.9% year over year. The consensus mark for 2026 loss per share is pegged at $7.24, compared with earnings of $3.08 in 2025.

In the trailing four quarters, this shipping company’s earnings surpassed estimates in two quarters (missing the mark on the other occasions). The average miss is 13.5%

Q1 Earnings Whispers for ZIM StockOur proven model does not predict an earnings beat for ZIM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ZIM has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping ZIM’s Q1 ResultsWe expect the company’s bottom-line performance is likely to have been hit by escalated voyage operating costs. Elevated fuel costs due to the unrest in the Middle East are also likely to have hurt the bottom-line performance. High labor costs are likely to have been a spoilsport.

An update on the tariff concerns is also expected on the first-quarter conference call. The latest takeover bid for ZIM, by an Israeli investor group led by businessman Haim Sakal, is likely to be discussed on the conference call. This latest bid, which was submitted recently to acquire full ownership of ZIM for $4.5 billion in cash, challenges an existing merger agreement with German shipping giant Hapag-Lloyd and Israel’s FIMI fund.

A decrease in freight rates and carried volume is expected to have hurt revenues in the to-be-reported quarter. However, continued fleet expansion initiatives are likely to have driven the company’s performance in the to-be-reported quarter.

Highlights of ZIM’s Q4 ResultsZIM reported fourth-quarter 2025 loss per share of 58 cents, which was narrower than the Zacks Consensus Estimate of a loss of $1.01. In the year-ago reported quarter, ZIM recorded earnings per share of $4.66. Revenues of $1.48 billion beat the Zacks Consensus Estimate of $1.41 billion but declined 31.5% from the year-ago quarter. 

ZIM’s Underperforms on the Price FrontOver the past year, shares of ZIM have gained 42%. Still, it has underperformed the Zacks Transportation - Shipping industry. ZIM has performed worse than fellow industry player Seanergy Maritime Holdings (SHIP - Free Report) and Euroseas (ESEA - Free Report) in the same timeframe. Shares of Seanergy Maritime have gained in triple digits (% wise) while those of Euroseas have gained in double digits in a year.

1-Year Price Comparison Image Source: Zacks Investment Research

ZIM Integrated Shipping Services (ZIM - Free Report) came out with a quarterly loss of $0.72 per share versus the Zacks Consensus Estimate of a loss of $0.22. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -227.27%. A quarter ago, it was expected that this container shipping company would post a loss of $1.01 per share when it actually produced a loss of $0.58, delivering a surprise of +42.57%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

ZIM, which belongs to the Zacks Transportation - Shipping industry, posted revenues of $1.4 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 12.37%. This compares to year-ago revenues of $2.01 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

ZIM shares have added about 20.4% since the beginning of the year versus the S&P 500's gain of 7.4%.

What's Next for ZIM?While ZIM has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for ZIM was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $1.88 billion in revenues for the coming quarter and -$7.24 on $5.87 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Seanergy Maritime Holdings Corp (SHIP - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of +251.9%. The consensus EPS estimate for the quarter has been revised 7.2% higher over the last 30 days to the current level.

Seanergy Maritime Holdings Corp's revenues are expected to be $42.41 million, up 75.2% from the year-ago quarter.

Key Takeaways ZIM's Q1 loss of 72 cents per share was wider than the Zacks Consensus Estimate loss of 22 cents.Q1 revenues declined 30.4% to $1.39 billion, owing to the decrease in freight rates and carried volume.Adjusted EBITDA for the first quarter was $313 million, down 60% on a year-over-year basis. ZIM Integrated Shipping Services Ltd. (ZIM - Free Report)  reported first-quarter 2026 loss per share of 72 cents, which was wider than the Zacks Consensus Estimate loss of 22 cents. In the year-ago reported quarter, ZIM reported earnings per share of $2.45.

Revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.59 billion and declined 30.4% from the year-ago quarter. This was due to the decrease in freight rates and carried volume.

Carried volume in the first quarter decreased 8% year over year to 866 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the first quarter decreased 26% year over year to $1,310.

Adjusted EBITDA for the first quarter was $313 million, down 60% on a year-over-year basis. Adjusted EBITDA margins for the first quarter of 2026 fell to 22% from 39% in the year-ago quarter.

Adjusted EBIT loss for the first quarter was $5 million compared with adjusted EBIT of $463 million in the first quarter of 2025. Adjusted EBIT margins in the first quarter of 2026 fell to 0% from 23% in the year-ago quarter.

Currently, ZIM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LiquidityZIM exited the first quarter with cash and cash equivalents of $921.6 million compared with $1.05 billion at the end of the previous quarter.

ZIM generated $263 million of cash from operating activities in the first quarter of 2026. Net capital expenditures totaled $28 million for the reported quarter. Free cash flow was $235 million.

ZIM’s First-Quarter 2026 DividendBased on its dividend policy and in light of the net loss recorded in the first quarter of 2026, ZIM’s board of directorshas declared not to pay any dividend to shareholders on account of its first-quarter results.

Deal With Hapag-LloydOn Feb. 16, 2026, ZIM announced that it had inked a deal with Hapag-Lloyd, per which ZIM would be purchased by Hapag-Lloyd for $35.00 per share in cash. The deal was unanimously approved by ZIM's board of directors and approved by shareholders at a special meeting held on April 30, 2026. Subject to satisfaction of customary closing conditions, including approvals by various regulatory authorities, among them the State of Israel, pursuant to the requirements of the Special State Share (the "Golden Share"), the deal is anticipated to be completed in the fourth quarter of 2026.

Q1 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis. 

United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.

UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.

Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.

Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.

J.B. Hunt Transport Services (JBHT - Free Report)  posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.

Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.

ZIM Board of Directors Appoints Dr. Chen Lichtenstein as President and CEO of the Company; will also be joining its Board of Directors PR Newswire

HAIFA, Israel, June 1, 2026

, /PRNewswire/ -- ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) ("ZIM" or the "Company"), a global container liner shipping company, announced today the appointment of Dr. Chen Lichtenstein as its new President and Chief Executive Officer following the resignation on April 15, 2026, of Eli Glickman, the existing President and Chief Executive Officer. The appointment of Dr. Lichtenstein will become effective as of July 1, 2026, at which time Dr. Lichtenstein will also become a member of the Board of Directors of the Company. The employment agreement between the Company and Dr. Lichtenstein will be brought to shareholder approval as required by the Israeli Companies Law of 1999.

Dr. Lichtenstein brings with him extensive management, business and financial experience in the global arena, including leading complex international companies, managing growth processes, integration and organizational change, operating in international markets and working with boards of directors, shareholders and global investment bodies.

From 2020 to 2023, he served as the Chief Financial Officer at Syngenta Group, a global agricultural technology company, and was also responsible for strategy, integration and productivity. In this role, he was a key partner in building the global group, which included Syngenta Seeds, Syngenta Crop Protection, ADAMA and the Group's operations in China, and led significant steps towards growth, synergies, efficiency and management of a complex debt structure. Prior to his position at Syngenta Group, Dr. Lichtenstein served as the President and CEO of ADAMA Ltd. (formerly known as Makhteshim Agan Industries Ltd.) from 2014 to 2020, which he led during a period of significant, industry-leady growth, improved profitability and cash flow, integration with ChemChina's operations, and a listing on the Shenzhen Stock Exchange. From 2013 to 2014, Dr. Lichtenstein also served as President and CEO of China National Agrochemical Corporation, ChemChina's strategic agrochemical division, and parent of Syngenta Group. From 2006 to 2013 he served as the Deputy Chief Executive Officer, Head of Global Operations and held various other roles within Makhteshim Agan Industries, where he led, among other things, broad areas of activity including global operations, business development, integration in China, R&D, supply chain, purchasing and manufacturing. Previously Dr. Lichtenstein served as a senior investment banking executive at Goldman Sachs in New York and London from 1999 to 2006, where he led acquisition and financing transactions of significant scope.

Dr. Lichtenstein currently serves as a member of the Board of Directors at Teva Pharmaceuticals Ltd., as chairman of the board of directors at international companies in the fields of environmental sciences and biotechnology and as a senior advisor to international investment entities. Dr. Lichtenstein holds joint doctoral degrees from the Graduate School of Business and the School of Law at Stanford University, a B.Sc. in Physics from the Faculty of Mathematics and Natural Sciences, summa cum laude, and an LL.B. from the Faculty of Law, cum laude, at the Hebrew University of Jerusalem.

Dr. Lichtenstein was appointed following a search process, which was conducted on behalf of the ZIM Board of Directors, with the participation of the directors Yair Seroussi, the Chairman of the Board, Dr. Yoram Turbowicz and Yair Avidan.

Yair Seroussi, Chairman of the Board, stated, "Dr. Chen Lichtenstein is a highly experienced top-tier international executive, with a unique combination of extensive managerial experience, financial depth, strategic insight, and the ability to lead complex global organizations. His broad experience in managing international companies, working with global markets, shareholders, and boards of directors, together with his judgment and experience in leading transformation and integration processes, make him the right executive to lead ZIM at this time. We thank Eli Glickman for his significant contribution to the Company and wish Chen great success in his role."

Dr. Lichtenstein, ZIM President and CEO-appointee stated, "I thank ZIM's Board of Directors for its confidence and for the opportunity to lead a global Israeli company with a meaningful legacy, growth and business success, broad international operations, and outstanding people. ZIM operates in a dynamic, competitive, and complex market, and I attach great importance to maintaining the Company's stability, strengthening its performance and business capabilities, and continuing to create value for customers, employees, partners, and shareholders."

About ZIM

Founded in Israel in 1945, ZIM (NYSE: ZIM) is a leading global container liner shipping company with operations in more than 90 countries, serving over 30,000 customers across more than 300 ports worldwide. ZIM leverages digital strategies and a commitment to ESG values to provide customers innovative seaborne transportation and logistics services and exceptional customer experience. ZIM's differentiated global-niche strategy, based on agile fleet management and deployment, covers major trade routes with a focus on select markets where the company holds competitive advantages. Additional information about ZIM is available at www.ZIM.com.

Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
[email protected]

Leon Berman
The IGB Group
212-477-8438
[email protected]

Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
[email protected]

Logo: https://mma.prnewswire.com/media/1933864/ZIM_Logo.jpg

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SOURCE ZIM Integrated Shipping Services Ltd.

ZIM Integrated Shipping faced pressure on freight rates in Q1'26, resulting in revenue and EBITDA pressure. The Strait of Hormuz closure and supply chain disruptions have started to affect cargo freight rates positively in May. In May, a new rival take-over bid from Haim Sakal was revealed, which valued ZIM Integrated Shipping at $37.50 per share.