DocuSign (DOCU) AI Stock Analysis

• Market Cap: $14.71B
• Dividend Yield: N/A
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 55.2
• Beta (1Y): 1.25
• Revenue Growth: 8.29%
• EPS Growth: -71.36%
• Country: US
• Employees: 6,838
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.92
• Shares Outstanding: 201,104,110
• 10 Day Avg. Volume: 2,323,542
• 30 Day Avg. Volume: 3,248,392
• PEG Ratio: 0.01
• Price to Book (P/B): 9.87
• Price to Sales (P/S): 6.64
• P/FCF Ratio: 21.48
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.92
• Enterprise Value/Gross Profit: 6.20
• Enterprise Value/Ebitda: 31.98
• 1Y Price Target: $97.62
• Price Target Upside: 33.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $79.00 ▲(8.01% Upside)

DocuSign's strong financial performance and positive earnings call sentiment are significant strengths, contributing to a solid overall score. However, high valuation and bearish technical indicators present risks. The company's strategic focus on innovation and market expansion supports its growth potential, but investors should be cautious of the premium valuation and technical trends.

Positive Factors

Revenue Growth

DocuSign's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Improved cash flow margins enhance financial flexibility, enabling DocuSign to invest in growth opportunities and shareholder returns.

Strategic Partnerships

The partnership with Clear enhances DocuSign's security offerings, addressing identity fraud concerns and strengthening its competitive position.

Negative Factors

New Competition

The emergence of DocuGPT as a competitor could challenge DocuSign's market share in agreement management, impacting long-term growth.

Cloud Migration Costs

Ongoing cloud migration costs are pressuring margins, which may limit profitability and financial flexibility in the near term.

Slowing Revenue Growth

Slowing revenue growth suggests market saturation or increased competition, potentially hindering DocuSign's ability to sustain past growth rates.

DocuSign Business Overview & Revenue Model

Company Description

DocuSign, Inc. is a leading provider of electronic signature and digital transaction management solutions, enabling individuals and businesses to sign, send, and manage documents digitally and securely. Founded in 2003 and headquartered in San Francisco, California, DocuSign operates primarily in the technology sector, focusing on the e-signature space and broader document automation solutions. Its core products include the DocuSign eSignature platform, which allows users to easily sign documents online, and DocuSign Agreement Cloud, which offers a suite of tools for managing the entire agreement process from preparation to execution.

How the Company Makes Money

DocuSign generates revenue primarily through subscription fees for its cloud-based software services. The company offers various subscription plans tailored to different customer needs, ranging from individual users to large enterprises. Key revenue streams include the sale of eSignature licenses, which allow users to digitally sign documents, and additional features such as document storage, templates, and advanced security options. DocuSign also benefits from partnerships with major technology providers and integrations with popular business applications like Salesforce, Microsoft, and Google, enhancing its market reach and driving customer acquisition. The company's recurring revenue model, characterized by annual or multi-year contracts, provides a stable income stream while allowing for scalability as more customers adopt digital solutions.

DocuSign Financial Statement Overview

Summary

DocuSign demonstrates strong financial health with solid profitability, a stable balance sheet, and robust cash flows. While revenue growth has moderated, the company maintains strong margins and cash generation, positioning it well for sustainable operations.

Income Statement

DocuSign's income statement shows strong profitability with a gross profit margin consistently above 79% and a net profit margin improving to 9.08% TTM. Revenue growth has slowed to 2.13% TTM, indicating a maturing growth phase. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.06 TTM, indicating low leverage. Return on equity is healthy at 14.06% TTM, showing effective use of equity. The equity ratio is stable, suggesting a strong capital structure.

Cash Flow

Cash flow metrics are robust with a free cash flow growth rate of 2.15% TTM and a high free cash flow to net income ratio of 0.90. Operating cash flow is strong, covering net income comfortably, indicating good cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.10B	2.98B	2.76B	2.52B	2.11B	1.45B
Gross Profit	2.46B	2.36B	2.19B	1.98B	1.64B	1.09B
EBITDA	476.06M	357.30M	195.59M	2.76M	21.44M	-127.60M
Net Income	280.97M	1.07B	73.98M	-97.45M	-69.98M	-243.27M
Balance Sheet
Total Assets	3.95B	4.01B	2.97B	3.01B	2.54B	2.34B
Cash, Cash Equivalents and Short-Term Investments	844.46M	963.55M	1.05B	1.03B	802.82M	773.50M
Total Debt	126.94M	124.43M	143.05M	888.29M	882.23M	915.75M
Total Liabilities	1.96B	2.01B	1.84B	2.40B	2.27B	2.01B
Stockholders Equity	1.99B	2.00B	1.13B	617.29M	275.50M	325.74M
Cash Flow
Free Cash Flow	935.75M	920.28M	887.13M	429.11M	445.07M	214.56M
Operating Cash Flow	1.04B	1.02B	979.53M	506.76M	506.47M	296.95M
Investing Cash Flow	-131.37M	-312.88M	44.61M	-191.20M	-162.91M	81.23M
Financing Cash Flow	-926.70M	-838.79M	-946.04M	-98.26M	-394.62M	-58.98M

DocuSign Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCU, the sentiment is Neutral. The current price of 73.14 is above the 20-day moving average (MA) of 70.31, below the 50-day MA of 75.12, and below the 200-day MA of 80.02, indicating a neutral trend. The MACD of -0.95 indicates Negative momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 50.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOCU.

DocuSign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZM	―	$26.11B	22.98	13.60%	―	3.63%	36.57%
MNDY	―	$10.42B	276.90	3.80%	―	30.24%	-6.69%
DOCU	―	$14.71B	55.18	14.23%	―	8.29%	-71.36%
GTLB	―	$7.92B	―	-0.63%	―	28.97%	98.96%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	―	$3.23B	―	-80.55%	―	9.74%	22.36%
KC	―	$3.94B	―	-31.02%	―	20.42%	-9.39%

DocuSign Corporate Events

DocuSign’s Earnings Call Highlights Growth and Innovation

The recent earnings call for DocuSign conveyed a positive sentiment, underscored by strong revenue and billings growth, effective sales strategy adjustments, and significant advancements in the Intelligent Agreement Management (IAM) platform. Despite facing challenges related to cloud migration costs and tough year-over-year comparisons, the overall performance and outlook for the company remain optimistic.

Docusign Reports Strong Q2 2026 Financial Results

Docusign, Inc., a leading provider of electronic signature and contract lifecycle management solutions, operates in the technology sector, offering innovative tools for managing agreements digitally. The company recently announced its financial results for the second quarter of fiscal 2026, highlighting significant growth driven by AI innovations and strategic market changes.

DocuSign Appoints New Board Chair Amid Strong Q2 Results

On September 4, 2025, DocuSign announced the appointment of Mike Rosenbaum to its Board of Directors, effective September 3, 2025, and James Beer as the new Board Chair. The company reported strong financial results for the second quarter of fiscal 2026, with a 9% year-over-year revenue increase to $800.6 million, driven by AI innovation launches and go-to-market changes. DocuSign also introduced new AI-powered capabilities in its IAM platform, enhancing agreement management processes. These developments are expected to strengthen DocuSign’s market position and continue its transformation into an Intelligent Agreement Management company.

The most recent analyst rating on (DOCU) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on DocuSign stock, see the DOCU Stock Forecast page.