Docusign (DOCU) Reports Third Quarter Fiscal 2026 Financial Earnings Results

DocuSign, Inc. (DOCU) today announced its financial results for the most recent quarter, revealing a mixed performance. The company reported earnings per share of $0.40, falling short of analysts’ expectations by $0.52, while revenue came in at $818.35 million, exceeding estimates by approximately $12.1 million. Despite the earnings miss, the revenue beat highlights the company’s continued growth in the digital signature and agreement space.

Key Highlights:

• Docusign reported Q3 fiscal 2026 revenue of $818.4 million, an 8% year-over-year increase.
• Subscription revenue reached $801.0 million, a 9% year-over-year increase.
• Billings were $829.5 million, a 10% year-over-year increase.
• GAAP net income per diluted share was $0.40, up from $0.30 in the same period last year.
• The company surpassed 25,000 customers on its Intelligent Agreement Management (IAM) platform.
• New capabilities announced include integrations with ChatGPT and other AI platforms.
• Docusign achieved FedRAMP Moderate and GovRAMP authorization in Q3.
• The company expects total revenue for Q4 to be between $825 million and $829 million, representing a 7% year-over-year growth.

In the third quarter of fiscal 2026, Docusign demonstrated strong financial performance, with revenue increasing to $818.4 million, driven by a 9% rise in subscription revenue. CEO Allan Thygesen highlighted the growing customer investment in the IAM platform, which now serves over 25,000 customers. The company also reported a significant increase in billings, reflecting robust demand for its services. Docusign’s focus on enhancing its IAM platform with new AI integrations and expanding its customer base has positioned it well for future growth.

Looking ahead, Docusign provided guidance for the upcoming quarter, projecting total revenue between $825 million and $829 million, which indicates a 7% year-over-year growth. The company is also optimistic about its long-term prospects, as evidenced by its recognition in the Gartner CLM Magic Quadrant and the Fortune Future 50 list. With continued investment in its technology and customer base, Docusign aims to maintain its leadership in the e-signature and contract lifecycle management markets.

DocuSign, Inc. (DOCU) has experienced a rollercoaster ride in its stock price, with a notable 2.54% increase over the past week, suggesting a potential rebound after a challenging few months. However, the longer-term view reveals a more concerning trend, with the stock down 22.91% over the last six months and 12.22% year-over-year. This decline comes despite impressive fundamental metrics, including a robust 44.79% compound annual growth rate (CAGR) in earnings per share over the past two years, indicating strong profitability potential. The company’s price-to-earnings ratio stands at 53.85, reflecting high investor expectations, but also suggesting that the stock may be overvalued given its recent performance. Additionally, DocuSign’s free cash flow CAGR of 30.76% highlights its ability to generate cash, which is crucial for sustaining growth and innovation. With a return on invested capital of 18.25% and a net profit margin of 9.08%, the company demonstrates solid operational efficiency. As investors weigh these metrics against the stock’s volatility, the question remains whether DocuSign can regain its footing in a competitive market.

DocuSign, Inc. provides electronic signature software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which automates workflows across the entire agreement process; Insights that use artificial intelligence (AI) to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce; Negotiate for Salesforce that supports for approvals, document comparisons, and version control; Analyzer, which helps customers understand what they’re signing before they sign it; and CLM+ that provide AI-driven contract lifecycle management. The company provides Guided Forms, which enable complex forms to be filled via an interactive and step-by-step process; Click that supports no-signature-required agreements for standard terms and consents; Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Payments that enables customers to collect signatures and payment; Remote Online Notary is a solution using audio-visual and identify verification technologies to enable notarization; and Monitor using advanced analytics to track DocuSign eSignature web, mobile, and API account. It offers industry-specific cloud offerings, including Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally; Rooms for Mortgage, which offers digital workspace to create and close mortgages; FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise, commercial, and small businesses. The company was incorporated in 2003 and is headquartered in San Francisco, California.