Docusign (NASDAQ:DOCU) Releases Quarterly Earnings Results

Docusign (NASDAQ:DOCU) posted its quarterly earnings results on Thursday. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $1.00 by $0.09, FiscalAI reports. The business had revenue of $830.24 million during the quarter, compared to the consensus estimate of $824.71 million. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The company’s quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.90 earnings per share.

Here are the key takeaways from Docusign’s conference call:

• DocuSign said Q1 revenue rose 9% year over year to $830 million, with 32% operating margin and 35% free cash flow margin, underscoring durable execution.
• The company highlighted strong momentum in its AI-native IAM platform, with IAM now representing 12.6% of total ARR and management still targeting about 18% of ARR by fiscal year-end.
• Management emphasized growing enterprise adoption and ecosystem expansion, including new integrations with Anthropic, OpenAI, Salesforce, Workday, Coupa, Stripe and others, plus new agentic tools and credit-based platform pricing.
• Underlying customer trends improved, with dollar net retention above 102%, customer count up 9% to nearly 1.9 million, and customers spending over $300,000 in ACV growing 12% year over year to 1,258.
• DocuSign returned capital aggressively, repurchasing $318 million of stock in the quarter — its largest quarterly buyback ever — while maintaining a strong balance sheet with about $1 billion in cash and no debt.

Docusign Price Performance

NASDAQ DOCU opened at $50.94 on Friday. Docusign has a 1 year low of $40.16 and a 1 year high of $94.67. The company has a market capitalization of $9.90 billion, a PE ratio of 34.42, a P/E/G ratio of 2.00 and a beta of 0.92. The company has a fifty day moving average of $47.74 and a two-hundred day moving average of $54.21.

More Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign beat Q1 estimates, posting adjusted EPS of $1.09 versus $1.00 expected and revenue of about $830.2 million versus $824.7 million forecast, with sales up 8.7%-9% year over year. DocuSign (DOCU) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised its revenue outlook for fiscal 2027 and said demand is improving for its AI-powered Intelligent Agreement Management platform, which supports the growth story. DocuSign Nudges Revenue Outlook Higher After First-Quarter Profit Rises
• Positive Sentiment: Investors are also encouraged by new AI-related product integrations, including ChatGPT and Codex, which could broaden adoption of DocuSign’s platform. DocuSign (DOCU) Valuation Check After Q1 Beat And New AI Agreement Management Launch
• Neutral Sentiment: DocuSign also highlighted record stock buybacks and continued product launches, but these items appear secondary to the company’s main earnings and guidance narrative. Docusign Inc (DOCU) Q1 2027 Earnings Call Highlights
• Negative Sentiment: Despite the beat, the stock fell in premarket/after-hours trading because guidance did not offer much upside beyond Wall Street expectations, leaving some investors disappointed. DocuSign Tops First-Quarter Forecasts, but Soft Outlook Weighs on Shares (DOCU)

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. HSBC set a $53.00 target price on shares of Docusign in a research note on Friday, February 13th. Citigroup reiterated a “neutral” rating on shares of Docusign in a research note on Friday. JPMorgan Chase & Co. lowered their target price on shares of Docusign from $78.00 to $65.00 and set a “neutral” rating for the company in a research note on Wednesday, March 18th. Weiss Ratings upgraded shares of Docusign from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. Finally, Bank of America assumed coverage on shares of Docusign in a research note on Tuesday, March 31st. They set an “underperform” rating and a $52.00 target price for the company. Three equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Docusign has an average rating of “Hold” and an average target price of $61.40.

Insider Buying and Selling

In other Docusign news, Director Mary Agnes Wilderotter sold 3,000 shares of the company’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $48.15, for a total value of $144,450.00. Following the completion of the transaction, the director owned 59,803 shares in the company, valued at $2,879,514.45. This represents a 4.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Robert Chatwani sold 16,696 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $48.10, for a total transaction of $803,077.60. Following the completion of the transaction, the insider owned 72,458 shares of the company’s stock, valued at $3,485,229.80. This represents a 18.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 65,126 shares of company stock valued at $3,107,875 over the last ninety days. Company insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Docusign

Several large investors have recently bought and sold shares of DOCU. Woodline Partners LP boosted its stake in Docusign by 24,412.7% in the third quarter. Woodline Partners LP now owns 958,938 shares of the company’s stock valued at $69,130,000 after acquiring an additional 955,026 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of Docusign by 1,575.5% in the fourth quarter. Marshall Wace LLP now owns 888,411 shares of the company’s stock valued at $60,767,000 after buying an additional 835,388 shares during the last quarter. Federated Hermes Inc. raised its holdings in shares of Docusign by 318.8% in the fourth quarter. Federated Hermes Inc. now owns 965,377 shares of the company’s stock valued at $66,032,000 after buying an additional 734,853 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Docusign by 58.7% in the fourth quarter. AQR Capital Management LLC now owns 1,386,866 shares of the company’s stock valued at $94,862,000 after buying an additional 512,981 shares during the last quarter. Finally, Alliancebernstein L.P. raised its holdings in shares of Docusign by 132.8% in the second quarter. Alliancebernstein L.P. now owns 868,531 shares of the company’s stock valued at $67,650,000 after buying an additional 495,380 shares during the last quarter. Institutional investors and hedge funds own 77.64% of the company’s stock.

Docusign declared that its board has initiated a stock repurchase plan on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to reacquire up to 21% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Docusign Company Profile

DocuSign, Inc (NASDAQ: DOCU) is a leading provider of electronic signature and digital transaction management solutions. The company’s flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign’s Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign’s platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.