Docusign (NASDAQ:DOCU) Announces Quarterly Earnings Results

Docusign (NASDAQ:DOCU) announced its quarterly earnings data on Thursday. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.07, reports. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The firm had revenue of $875.75 million during the quarter, compared to the consensus estimate of $867.22 million. During the same quarter in the prior year, the company earned $0.30 EPS. The business’s revenue for the quarter was up 9.4% on a year-over-year basis.

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

• DocuSign reported Q2 revenue of $876 million, up 9% year over year, with a 31.6% non-GAAP operating margin and $296 million in free cash flow. The company repurchased $307 million of stock during the quarter.
• Intelligent Agreement Management (IAM) adoption continued to accelerate, reaching 15.1% of total ARR versus 12.6% in Q1, while the company launched AI Assistant, agentic workflows, Agent Studio, and additional integrations with platforms including Slack, Perplexity, and Google Cloud.
• Management raised fiscal 2027 ARR growth guidance to 8.5%-9.0%, up from 8.0% in fiscal 2026, and expects IAM to represent 18%-19% of total ARR exiting the year. Revenue and operating-margin guidance were also raised, reflecting confidence in second-half execution.
• Upmarket momentum strengthened, with customers generating more than $300,000 in annual contract value growing 14% year over year to nearly 1,300, while total customers increased nearly 10% to over 1.9 million. Dollar net retention improved modestly to 103%, with expansion contributing more meaningfully alongside retention.
• Non-GAAP gross margin declined slightly to 81.7% and is expected to decrease modestly for the full year because of ongoing cloud-migration investments, while foreign-exchange headwinds reduced the benefit from the company’s underlying performance.

Docusign Stock Performance

Shares of DOCU opened at $65.97 on Friday. Docusign has a fifty-two week low of $40.16 and a fifty-two week high of $86.65. The business has a 50-day moving average of $55.24 and a 200 day moving average of $49.74. The firm has a market cap of $12.60 billion, a P/E ratio of 42.84, a price-to-earnings-growth ratio of 2.32 and a beta of 0.90.

Insider Buying and Selling at Docusign

In other Docusign news, insider James Shaughnessy sold 12,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $546,480.00. Following the completion of the transaction, the insider owned 52,815 shares in the company, valued at $2,405,195.10. This trade represents a 18.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Beer sold 450 shares of Docusign stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $64.02, for a total transaction of $28,809.00. Following the completion of the transaction, the director owned 14,586 shares of the company’s stock, valued at $933,795.72. The trade was a 2.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 90,602 shares of company stock valued at $4,323,749. Insiders own 0.59% of the company’s stock.

Institutional Investors Weigh In On Docusign

Several institutional investors have recently made changes to their positions in DOCU. Woodline Partners LP grew its position in shares of 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 purchasing an additional 955,026 shares in the last quarter. Marshall Wace LLP raised its stake in shares of Docusign by 1,575.5% during the 4th quarter. Marshall Wace LLP now owns 888,411 shares of the company’s stock valued at $60,767,000 after purchasing an additional 835,388 shares during the period. Federated Hermes Inc. lifted its holdings in Docusign by 318.8% during the 4th quarter. Federated Hermes Inc. now owns 965,377 shares of the company’s stock worth $66,032,000 after purchasing an additional 734,853 shares in the last quarter. AQR Capital Management LLC lifted its holdings in Docusign by 58.7% during the 4th quarter. AQR Capital Management LLC now owns 1,386,866 shares of the company’s stock worth $94,862,000 after purchasing an additional 512,981 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its stake in Docusign by 132.8% in the 2nd quarter. Alliancebernstein L.P. now owns 868,531 shares of the company’s stock worth $67,650,000 after purchasing an additional 495,380 shares during the period. Hedge funds and other institutional investors own 77.64% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on DOCU shares. UBS Group set a $60.00 price target on shares of Docusign in a research report on Friday, June 5th. Wall Street Zen lowered shares of Docusign from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 2nd. Jefferies Financial Group boosted their target price on shares of Docusign from $45.00 to $50.00 and gave the company a “hold” rating in a research note on Friday, June 5th. Wedbush decreased their price target on shares of Docusign from $60.00 to $58.00 and set a “neutral” rating for the company in a research note on Friday, June 5th. Finally, Wells Fargo & Company lowered their price target on shares of Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a report on Friday, June 5th. Four equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $61.27.

Key Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign reported fiscal Q2 revenue of $875.7 million, up 9.4% year over year and ahead of the $867.2 million consensus estimate. Adjusted earnings of $1.16 per share also exceeded expectations of approximately $1.08-$1.09. DocuSign fiscal second-quarter results
• Positive Sentiment: The company raised its fiscal 2027 revenue, annual recurring revenue (ARR) and IAM-mix outlook. Management cited accelerating adoption of its AI-enabled IAM platform, which uses agreement data to support broader workflow and productivity applications. DocuSign raises forecast on AI momentum
• Positive Sentiment: DocuSign expects fiscal Q3 revenue of $886 million to $890 million, broadly around analyst expectations, while full-year revenue guidance is approximately $3.5 billion. The outlook suggests continued stability in the core e-signature business as newer IAM products gain traction.
• Positive Sentiment: BTIG Research raised its price target on DOCU from $60 to $75 and upgraded the shares to Buy, adding a favorable analyst signal following the earnings release. BTIG raises DocuSign price target
• Neutral Sentiment: Although the earnings and revenue beats were positive, fiscal Q3 revenue guidance was largely in line with consensus rather than materially above it. Investors will likely focus on whether IAM and AI adoption can accelerate growth beyond the current roughly 9% pace.
• Positive Sentiment: Separately, consulting firm BearingPoint integrated its GenAIQ tool with DocuSign IAM, potentially expanding use of the platform in procurement and contract-management workflows. BearingPoint integrates GenAIQ with DocuSign IAM

About Docusign

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.