DocuSign (DS3) AI Stock Analysis

Company Guidance

For the third quarter, as-reported revenue is expected to be in the range of $886 million to $890 million, an increase of 9% year-over-year at the midpoint on an as-reported basis, including a 1 percentage point tailwind from FX; non-GAAP gross margin is expected to be in the range of 81.5% to 81.9%, non-GAAP operating margin in the range of 31.3% to 31.7%, and non-GAAP fully diluted weighted average shares outstanding between 191 million and 196 million. For fiscal year 2027, as-reported revenue is expected in the range of $3.499 billion to $3.507 billion, an increase of 9% year-over-year at the midpoint on an as-reported basis, including an approximately 1 percentage point tailwind from FX, with incremental foreign currency headwinds of approximately $4 million; non-GAAP gross margin is expected between 81.5% and 82.0%, non-GAAP operating margin between 31.0% and 31.5%, and non-GAAP fully diluted weighted average shares outstanding between 190 million and 195 million. Fiscal 2027 ARR growth is expected to be in the range of 8.5% to 9.0% year-over-year versus 8.0% ARR growth in fiscal 2026, IAM ARR is expected to represent between 18% and 19% of total ARR exiting Q4 of fiscal 2027, DNR is expected to show a modest improvement on a year-over-year basis, and fiscal 2027 gross margins are expected to decline slightly year-over-year.