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DocuSign
(NASDAQ:DOCU)
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Rating:82Outperform
Price Target:
$81.00
▲(33.80% Upside)
Action:Reiterated
Date:09/15/26
DOCU scores well on financial strength—especially durable free cash flow and a de-risked balance sheet—supported by bullish technical momentum and a strongly constructive earnings update with raised guidance and margin/FCF expansion. The primary offset is valuation: the elevated P/E and lack of dividend yield make continued execution and sustained growth re-acceleration important to support the stock.
Positive Factors
Recurring SaaS Revenue
Subscription-based access creates recurring revenue and embeds DocuSign in customers’ document workflows. The platform serves individuals, small businesses, and enterprises, while integrations and feature tiers can support adoption and expansion over the next several quarters.
Negative Factors
Slowing Revenue Growth
Slower revenue growth limits operating leverage and reduces the pace at which DocuSign can expand its earnings base. Sustained improvement depends on re-acceleration through IAM, larger customers, and broader workflow adoption rather than relying only on cost discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS Revenue
Subscription-based access creates recurring revenue and embeds DocuSign in customers’ document workflows. The platform serves individuals, small businesses, and enterprises, while integrations and feature tiers can support adoption and expansion over the next several quarters.
Read all positive factors
DocuSign Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, revealing which areas are contributing most to growth and where DocuSign might focus its strategic efforts.
Breaks down revenue across different business segments, revealing which areas are contributing most to growth and where DocuSign might focus its strategic efforts.
Data provided by:
The Fly
The FlyDocuSign (DOCU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.90B
Dividend YieldN/A
Average Volume (3M)3.34M
Price to Earnings (P/E)41.3
Beta (1Y)1.18
Revenue Growth8.59%
EPS Growth20.88%
CountryUS
Employees7,044
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.67
Shares Outstanding186,902,450
10 Day Avg. Volume3,266,112
30 Day Avg. Volume3,341,384
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)5.49
Price to Sales (P/S)3.27
P/FCF Ratio9.95
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue2.97
Enterprise Value/Gross Profit3.73
Enterprise Value/Ebitda15.75
Forecast
1Y Price Target
$70.33Price Target Upside16.18% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)4.62
Revenue Forecast (FY)$3.50B
DocuSign Business Overview & Revenue Model
Company Description
DocuSign, Inc. is a global provider of electronic signature software, operating both within the United States and internationally. The company's core offering is an e-signature solution that empowers businesses to digitally prepare, execute, final...
How the Company Makes Money
DocuSign primarily makes money by selling subscription-based access to its cloud software. The company’s main revenue stream is recurring subscription revenue from customers (individuals, small businesses, and large enterprises) who pay for seats/...
DocuSign Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive. Management reported solid revenue growth, accelerating IAM adoption, improving dollar net retention, larger customer deals, significant operating margin and free cash flow expansion, strong liquidity, and raised revenue and ARR guidance. The main negatives were the expected slight gross margin decline from cloud migration, foreign currency headwinds, revenue comparability effects from digital add-ons, and the early stage of connector and enterprise IAM monetization. Highlights significantly outweighed the lowlights.Positive Updates
Strong Second-Quarter Financial Results
Q2 revenue was $876 million, up 9% year-over-year. The quarter delivered a 32% operating margin and approximately $300 million in free cash flow, supporting more than $300 million of share repurchases.
Negative Updates
Gross Margin Declined Slightly
Non-GAAP gross margin was 81.7%, down slightly year-over-year as expected due to the ongoing cloud migration investment. DocuSign expects fiscal 2027 gross margins to decline slightly year-over-year for the same reason, although the migration remains on track to be largely complete by the end of the fiscal year.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Second-Quarter Financial Results
Q2 revenue was $876 million, up 9% year-over-year. The quarter delivered a 32% operating margin and approximately $300 million in free cash flow, supporting more than $300 million of share repurchases.
Read all positive updates
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.DocuSign Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.36B | 3.22B | 2.98B | 2.76B | 2.52B | 2.11B |
| Gross Profit | 2.67B | 2.56B | 2.36B | 2.19B | 1.98B | 1.64B |
| EBITDA | 633.37M | 562.16M | 357.30M | 195.59M | 2.76M | 21.44M |
| Net Income | 329.94M | 309.08M | 1.07B | 73.98M | -97.45M | -69.98M |
Balance Sheet | ||||||
| Total Assets | 3.96B | 4.23B | 4.01B | 2.97B | 3.01B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 777.68M | 867.01M | 963.55M | 1.05B | 1.03B | 802.82M |
| Total Debt | 183.10M | 185.12M | 124.43M | 143.05M | 888.29M | 882.23M |
| Total Liabilities | 2.24B | 2.31B | 2.01B | 1.84B | 2.40B | 2.27B |
| Stockholders Equity | 1.72B | 1.92B | 2.00B | 1.13B | 617.29M | 275.50M |
Cash Flow | ||||||
| Free Cash Flow | 1.20B | 1.06B | 920.28M | 887.13M | 429.11M | 445.07M |
| Operating Cash Flow | 1.32B | 1.17B | 1.02B | 979.53M | 506.76M | 506.47M |
| Investing Cash Flow | -117.53M | -126.78M | -312.88M | 44.61M | -191.20M | -162.91M |
| Financing Cash Flow | -1.28B | -1.10B | -838.79M | -946.04M | -98.26M | -394.62M |
DocuSign Technical Analysis
Positive
60.54
Price Trends
63.16
Positive
55.44
Positive
53.66
Positive
Market Momentum
1.53
Positive
57.39
Neutral
71.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCU, the sentiment is Positive. The current price of 60.54 is below the 20-day moving average (MA) of 68.11, below the 50-day MA of 63.16, and above the 200-day MA of 53.66, indicating a bullish trend. The MACD of 1.53 indicates Positive momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 71.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOCU.
DocuSign Risk Analysis
DocuSign disclosed 49 risk factors in its most recent earnings report. DocuSign reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DocuSign Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.90B | 41.32 | 17.74% | ― | 8.59% | 20.88% | |
76 Outperform | $7.67B | 28.95 | 23.44% | ― | 11.04% | 22.52% | |
73 Outperform | $1.98B | 60.26 | 3.36% | ― | 8.57% | ― | |
71 Outperform | $9.79B | 23.43 | 40.43% | 0.68% | 9.23% | 27.04% | |
71 Outperform | $959.08M | 58.70 | 10.41% | 3.80% | 12.26% | -41.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $243.61M | -12.55 | -1.22% | ― | -10.34% | 49.81% |
* Technology Sector Average
DOCU
DocuSign
69.01
-3.16
-4.38%
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18.68
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-28.29%
LZ
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BLND
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1.03
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-69.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.