DocuSign Surges on Strong Q2 Results and AI-Powered Innovation

Docusign tops Wall Street expectations with strong second quarter results - SiliconANGLE

Docusign tops Wall Street expectations with strong second quarter results Shares of Docusign Inc. were up more than 7% in late trading today after the company impressed investors with revenue and earnings beats in its fiscal 2026 second quarter. For the quarter that ended on July 31, Docusign reported adjusted earnings per share of 92 cents, down from 97 cents per share in the same quarter of the previous year, on revenue of $800.6 million, up 9% year-over-year. Analysts were expecting 84 cents per share on revenue of $780.24 million. Docusign saw subscription revenue in the quarter of $784.4 million, up 9% year-over-year and professional services and other revenue of $16.2 million, down 13% year-over-year. Billings in the quarter came in at $818 million, up 13% year-over-year and Docusign ended the quarter with $1.1 billion in cash, cash equivalents and investments on hand. Business highlights in the quarter included Docusign releasing new capabilities to its Intelligent Agreement Management platform, including artificial intelligence-powered tools designed to streamline every stage of the agreement lifecycle, from creation through management. Among the new tools was Agreement Preparation, which automatically detects the type of agreement being drafted, builds a template and suggests the necessary fields. For document management, the company added Custom Extractions in DocuSign Navigator, a feature that helps customers capture organization-specific information from agreements at scale and reduces the need for manual review of large contract sets. DocuSign says the guided process not only improves efficiency but also mitigates risk and provides deeper insights into contract data. Additional updates included a new System for Cross-domain Identity Management integration that allows enterprises to provision and manage users through partners such as Okta Inc. and Microsoft Entra. DocuSign also launched Maestro Workflow Templates, templates that allow customers to quickly customize and deploy pre-built workflows without coding. "Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM and IAM businesses," said Allan Thygesen, chief executive officer of Docusign, in the company's earnings release. "Q2 business results outperformed, leading to one of Docusign's highest growth and profitability quarters in recent years." For its fiscal third quarter, Docusign expects revenue of $804 million to $808 million and for the full year, revenue of $3.189 billion to $3.201 billion. Analysts had been expecting a full-year revenue outlook of $3.16 billion.

Why Docusign Stock Is Surging Friday

Total customers rose 9% from a year ago, and the number of customers who spent more than $300,000 rose 7%. Docusign (DOCU) shares jumped Friday, after the maker of electronic signature software posted strong quarterly results and boosted its outlook as it added more customers and expanded its artificial intelligence offerings. The company reported second-quarter adjusted earnings per share of $0.92, above analysts' estimates compiled by Visible Alpha. Its revenue rose 9% year-over-year to $800.6 million, and billings were up 13% to $818 million. Both figures also exceeded expectations. Docusign said its total number of customers grew 9% to more than 1.7 million at the end of the quarter. Large customers who spent more than $300,000 per year rose 7% to 1,137. CEO Allan Thygesen called it "one of Docusign's highest growth and profitability quarters in recent years," thanks in part to "AI innovation launches and recent go-to-market changes." The company said it now sees full-year revenue of $3.189 billion to $3.201 billion, up from $3.151 billion to $3.163 billion previously. Shares of Docusign gained over 5% recent trading. Still, they've lost about 11% of their value since the start of the year.

DocuSign Q2 Revenue Hits $801 Million | The Motley Fool

DocuSign(DOCU 0.45%) reported fiscal Q2 2026 results on September 4, 2025, with revenue of $801 million, up 9% year over year, and billings of $818 million, up 13% year over year, while achieving a non-GAAP operating margin of 30%. The quarter featured notable progress in AI-native Intelligent Agreement Management (IAM), expanded international and enterprise traction, and reinforced management's focus on sustained profitable growth and capital returns to shareholders. While accelerating billings growth to 13% year over year, the company also achieved higher dollar net retention of 102% and an increase in average deal size, buoyed by improvements in gross retention and robust early renewals. International revenue represented 29% of total revenue, growing at 13% year over year. "Q2 business results outperformed our expectations. Revenue was $801 million, up 9% year over year, and billings were $818 million, up 13% year over year. Q2 top-line performance accelerated and represented one of our strongest growth quarters over the past two years. With improved fundamentals across eSignature and CLM customers, and growing contribution from IAM demand. Beyond an individual quarter, we're excited to see billings begin to accelerate on a full-year basis and more so when we adjust for early renewals. Profitability benefited from top-line strength, combined with our ongoing commitment to driving efficiency. Non-GAAP operating margins were 30% as we continue to maintain strong profitability. Free cash flow margins improved modestly year over year to 27% which supported significant share repurchases with $200 million buybacks this quarter." -- Allan C. Thygesen, CEO This combination of revenue and profitability growth -- along with disciplined capital return via share buybacks -- demonstrates execution strength and signals enhanced investor returns, especially as stronger billings and net retention indicate improving customer health and sustainable expansion in higher-value segments. IAM is positioned to reach a low double-digit percentage of the company's subscription book by year end, with over 50% of enterprise account representatives closing at least one IAM deal and Fortune 1000 clients such as Sensata Technologies and T-Mobile adopting advanced contract lifecycle management (CLM) and AI-driven analytics. The recent launch of AI-powered features such as DocuSign Navigator, agreement preparation, and SCIM user management reinforces product differentiation. "customers. While still early days, more than 50% of our enterprise account reps closed at least one IAM deal. Notably, average overall deal size also increased in Q2 with IAM making inroads with large organizations like Sensata Technologies, a global sensor manufacturing leader, which has accelerated its workflows and is beginning to use the DocuSign Iris AI engine to surface insights from agreements. DocuSign CLM saw improved momentum in Q2, delivering one of the strongest quarters in year-over-year quarterly bookings growth in the last several years." -- Allan C. Thygesen, CEO IAM's upmarket momentum and increasing penetration in enterprise accounts, coupled with advanced AI integration, create meaningful competitive differentiation, expand addressable opportunity, and reinforce the company's thesis as an emerging leader in the digital agreement and contract analytics space. Non-GAAP gross margin held steady at 82%, despite continuing cloud migration costs that represent a roughly 100-basis-point year-over-year headwind and a temporary dip in operating margin due to compensation mix shifts and prior-year one-off benefits. The company maintained a strong cash position with $1.1 billion of cash and no debt, continuing measured hiring and investing in go-to-market excellence and R&D for IAM scalability. "As a reminder, we expected Q2 to have the most challenging year-over-year operating margin comparison of any quarter in fiscal 2026 due to several factors, including the timing and impact of our compensation programs, specifically the shift to cash from equity for some employees. As you may also recall, Q2 fiscal 2025 also had a onetime operating margin benefit of approximately 150 basis points associated with insurance reimbursements and the release of a litigation reserve. Our cloud computing migration also continues to provide a year-over-year headwind to margins." -- Blake Jeffrey Grayson, CFO Enduring high profitability even in the face of margin headwinds highlights the resilience of DocuSign's business model, supporting further investments and capital returns while temporarily constraining incremental non-GAAP margin expansion until cloud migration cost pressures subside. Management projects revenue of $804 million to $808 million for Q3 FY2026 (7% year-over-year growth midpoint) and full-year revenue of $3.189 billion to $3.201 billion for FY2026 (7% year-over-year growth midpoint), with billings anticipated at $3.325 billion to $3.355 billion for FY2026 (7% growth midpoint). Non-GAAP operating margin is guided to 28% to 29% for Q3 and 28.6% to 29.6% for the full year, while full-year non-GAAP gross margin faces a roughly one percentage point headwind from ongoing cloud migration, which is expected to ease beginning next fiscal year. The company reiterated that IAM customers are on track to contribute a low double-digit percentage of the subscription book by year end and emphasized continued focus on capital returns through opportunistic share repurchases.

Why Did Docusign Stock Jump Today? | The Motley Fool

The software maker reported its Q2 earnings Thursday evening, beating expectations across the board and raising its outlook as artificial intelligence (AI) features gain traction. The company reported Q2 adjusted earnings per share of $0.92, beating analyst estimates. Sales jumped 9% year over year (YOY) to $800.6 million, while sales specifically from ads jumped 13% YOY. Customer growth showed steady momentum, with the total number of customers increasing by 9% to exceed 1.7 million. Management raised guidance for the coming quarter, citing strength in its expanding AI capabilities. CEO Allan Thygesen said of the performance, "Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM, and IAM businesses." The company also repurchased more than $200 million of its stock and finished the quarter with a healthy balance sheet that includes more than $1 billion in cash and short-term investments. Docusign is executing well on its transition beyond simple e-signatures into broader agreement management and AI-powered contract analysis. The stock carries a very solid PEG ratio -- a handy valuation metric that combines P/E and growth rates -- of 0.4. Docusign remains a mature software company in a competitive market, but I think it is positioning itself well and will continue to grow. It makes a nice addition to a well-diversified portfolio.

Docusign Revenue Jumps 9% in Fiscal Q2 | The Motley Fool

Docusign (DOCU 5.04%), a well-known player in digital agreements and eSignatures, reported its fiscal 2026 second-quarter earnings on Sept. 4, 2025. The details in the report suggest Docusign had one of its strongest quarters in recent years. Revenue for Q2 was $800.6 million, compared to management guidance of $777 million-$781 million, and billings reached $818 million, versus guidance of $757 million-$767 million. Adjusted EPS was $0.92, slightly down from $0.97 in the prior year. Overall, performance this quarter reflected renewed sales momentum, strong customer uptake, and early returns from recent product innovation and go-to-market strategy changes. Source: Docusign. Note: Fiscal 2026's second quarter ended on July 31, 2025. Fiscal 2025's Q2 ended July 31, 2024. Docusign enables electronic signatures, digital contract management, and workflow automation for organizations of all sizes. Its core offerings include the eSignature platform, a widely used tool for signing documents electronically, along with Contract Lifecycle Management (CLM) software that lets customers create, negotiate, and store agreements in a secure cloud environment. Docusign also offers Intelligent Agreement Management (IAM), a new generation of software that uses artificial intelligence to streamline and analyze agreements at scale. Recently, the company has focused its strategy on accelerating product innovation (especially AI features in IAM and CLM), refining its omnichannel sales approach, and improving operational efficiency through technology investments and go-to-market changes. Key business success factors include expanding subscription-based recurring revenue, ensuring continued adoption of its new platforms, and maintaining efficiency in how it delivers and supports these digital solutions. Revenue increased by 9% year over year in Q2. Billings, an indicator of future revenue, rose 13%. Management attributes these gains to a combination of product launches, especially in AI-powered Intelligent Agreement Management, and improvements in its go-to-market execution, when renewal timing complexity and internal sales changes temporarily impacted billings growth in Q1 FY2026. Subscription revenue, which now comprises 98% of total revenue, climbed 9% year-over-year on a GAAP basis. On the other hand, professional services and other revenue fell 13% to $16.2 million. This segment continues to struggle with negative margins, Docusign's non-GAAP gross margin slipped by 0.2 percentage points to 82.0%, reflecting some ongoing headwinds from cloud migration investments. Docusign highlighted several product and feature launches during the period. Its AI‑enabled agreement management suite added new capabilities, such as tools that detect the type of contract automatically, generate templates, and extract key information at scale through "Navigator" (an AI-driven agreement information tool). Features like ID Verification with CLEAR (a digital identity verification platform) and new workflow automation with Maestro templates were introduced as ways to improve customer efficiency and compliance. Management also pointed to third-party recognition for these advances, including being named a leader in the 2025 IDC MarketScape for AI-enabled buy-side CLM applications. On the go-to-market front, changes such as segmentation of the salesforce and expansion of self-serve and partner-assisted channels appear to be yielding results. Greater efficiency in sales and marketing, combined with higher free cash flow (non-GAAP), up 10.0% year-over-year in Q2 FY2026, underlines improvement in operational execution. The company continues to repurchase shares at a steady pace, with $201.5 million in Q2 FY2026. For Q3 FY2026, Docusign expects revenue between $804 million and $808 million. This represents a 7% year-over-year increase at the midpoint for the three months ended Oct. 31, 2025. Billings guidance is for $785 million to $795 million in Q3 FY2026, up 5% from a year ago. For FY2026, total revenue (GAAP) guidance has been raised to $3.189 billion to $3.201 billion. This is approximately $38 million above the midpoint of its previous guidance for the fiscal year ending Jan. 31, 2026. The company projects continued margin resilience, with non-GAAP operating margin forecast between 28.6% and 29.6% for FY2026. In the quarters ahead, investors are likely to focus on adoption of new product features in an increasingly AI-intensive agreement landscape.

Docusign raises FY2026 guidance after big Q2 win, shares soar By Investing.com

Investing.com -- Shares of DocuSign Inc (NASDAQ:DOCU) soared more than 8% in premarket trading Friday after the company posted stronger-than-expected second-quarter earnings and unveiled an optimistic full-year (FY) forecast. Investors rallied behind a combination of solid core performance and expanding adoption of DocuSign's AI-enhanced Intelligent Agreement Management (IAM) platform. For the fiscal second quarter ended July 31, DocuSign reported adjusted earnings of $0.92 per share, beating Wall Street's consensus forecast by 7 cents. Revenue climbed 9% year-over-year to $800.6 million, also exceeding Street expectations for $779.78 million. Billings, a key indicator of future revenue, rose to $818 million, up 13% from the year-ago period. Subscription revenue increased 9% to $784.4 million, while professional services revenue fell 13% to $16.2 million. "Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM, and IAM businesses," said DocuSign CEO Allan Thygesen. "Q2 business results outperformed, leading to one of DocuSign's highest growth and profitability quarters in recent years." The company showcased continued momentum in its IAM platform, unveiling AI-powered tools like Agreement Preparation and Custom Extractions in Navigator to automate contract creation and data extraction. DocuSign also deepened integration with enterprise identity providers and launched Maestro Workflow Templates to drive faster implementation of agreement workflows. DocuSign raised its full-year revenue guidance to a range of $3.19 billion to $3.20 billion, above analyst expectations of $3.16 billion. For the third quarter, it projects revenue between $804 million and $808 million, implying a year-over-year growth of roughly 7%. The company also lifted its full-year billings guidance to $3.34 billion, which implies 7.4% year-over-year growth, up from 6.5% previously, and provided Q3 billings guidance of $790 million, implying 5% year-over-year growth. "While renewal timing created quarterly billings growth volatility, we view the FY billings guidance raise positively as it is ahead of initial target and implies acceleration from last year, with mgmt passing through only half of the Q2 beat, embedding reasonable conservatism," Wolfe Research analysts said. Separately, Bank of America analysts said DocuSign's "Q2 results Q2 results suggest that DocuSign's recovery story is very much back on track." "We are bullish on the long term opportunity for IAM, as the solution brings Docusign into more strategic workflow and large deal sizes. However, the cycle is early and we believe that go to market efforts in both the direct and partner channel are a work in progress," they wrote. At the current valuation, BofA believes that "much of the near-term upside is priced into the shares." The bank lifted its price target to $102 from $85. Thygesen emphasized strategic additions to the board, including former Salesforce EVP Mike Rosenbaum and incoming Board Chair James Beer, as key to accelerating the company's transformation. "Mike's extensive experience in scaling platform SaaS businesses will be an immense resource for Docusign as we continue our transformation to an Intelligent Agreement Management company," Thygesen noted. Investors appear increasingly confident in the company's ability to drive durable growth through innovation and operational efficiency. With a cash position of $1.1 billion and robust free cash flow of $217.6 million in the quarter, DocuSign is positioning itself for long-term competitiveness in a market rapidly shifting toward AI-driven workflows. (Luke Juricic contributed to this report.)