Docusign (DOCU)
NASDAQ:DOCU
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DocuSign
(NASDAQ:DOCU)
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Rating:78Outperform
Price Target:
$63.00
▲(37.74% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by improved financial health—very strong free cash flow generation and a much stronger balance sheet—supported by constructive earnings-call guidance on margins and IAM-driven ARR growth. Technicals are positive but show signs of being stretched, while valuation (P/E ~35.7 and no dividend yield provided) tempers the overall score.
Positive Factors
Free cash flow generation
Sustained free cash flow above $1B provides durable internal funding for R&D, strategic investments, and shareholder returns without needing incremental debt. Strong cash conversion close to reported earnings supports earnings quality and gives management flexibility across 2–6 months and beyond.
Negative Factors
Slowing revenue/ARR growth
Top-line growth has cooled from pandemic-era highs to mid-single digits, signaling maturation and tougher comps. Without clear acceleration from new products or faster enterprise adoption, slower growth constrains operating leverage and makes sustained expansion dependent on successful IAM scale-up.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained free cash flow above $1B provides durable internal funding for R&D, strategic investments, and shareholder returns without needing incremental debt. Strong cash conversion close to reported earnings supports earnings quality and gives management flexibility across 2–6 months and beyond.
Read all positive factors
DocuSign Key Performance Indicators (KPIs)
Any
Billings
Reflects the total value of invoices sent to customers, indicating sales momentum and future revenue potential as these billings convert to recognized revenue.
Reflects the total value of invoices sent to customers, indicating sales momentum and future revenue potential as these billings convert to recognized revenue.
Data provided by:
The Fly
The FlyDocuSign (DOCU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.71B
Dividend YieldN/A
Average Volume (3M)3.04M
Price to Earnings (P/E)34.0
Beta (1Y)1.07
Revenue Growth8.16%
EPS Growth-70.70%
CountryUS
Employees6,838
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.52
Shares Outstanding194,291,380
10 Day Avg. Volume3,136,823
30 Day Avg. Volume3,044,328
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)5.49
Price to Sales (P/S)3.27
P/FCF Ratio9.95
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue3.04
Enterprise Value/Gross Profit3.83
Enterprise Value/Ebitda17.41
Forecast
1Y Price Target
$59.83Price Target Upside30.81% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)4.44
Revenue Forecast (FY)$3.49B
DocuSign Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
DocuSign makes money primarily through subscription-based SaaS revenue from customers who pay for access to its eSignature and broader agreement workflow products. The company typically sells tiered plans that scale by features and usage needs acr...
DocuSign Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational and financial progress—revenue and ARR growth of 8% YoY, record billings above $1B, first year with over $1B free cash flow, improved operating margins (30% FY non-GAAP), strong AI and IAM traction (IAM >$350M ARR and Navigator at 200M agreements), international and partner momentum, and an expanded share repurchase program. Offsetting items included modest gross margin pressure from cloud migration, GAAP EPS comparability headwinds, IAM still a relatively small portion of ARR (early renewal cohorts), and guidance that signals only modest acceleration in ARR/revenue growth for FY27. Overall, the positive execution, cash generation, AI/data advantages and clear IAM roadmap outweigh the noted headwinds and near-term risks, pointing to a constructive outlook but with caution around the pace of growth acceleration.Positive Updates
Top-Line Growth and Milestones
Q4 revenue of $837 million, up 8% year-over-year; full-year revenue $3.2 billion, up 8% year-over-year. Q4 subscription revenue $819 million, up 8% YoY; full-year subscription revenue $3.2 billion, up 9% YoY. Billings exceeded $1 billion in Q4 for the first time, up 10% YoY; full-year billings $3.4 billion, up 10% YoY.
Negative Updates
Moderate Growth Rate Relative to Expectations
Company growth remains mid-single-digit: ARR and revenue growth for FY26 both 8% YoY (ARR growth unchanged from FY25). FY27 guidance calls for modest acceleration only to ~8.5% ARR growth and ~8% revenue growth, indicating gradual rather than dramatic acceleration.
Read all updates
Q4-2026 Updates
Positive
Negative
Top-Line Growth and Milestones
Q4 revenue of $837 million, up 8% year-over-year; full-year revenue $3.2 billion, up 8% year-over-year. Q4 subscription revenue $819 million, up 8% YoY; full-year subscription revenue $3.2 billion, up 9% YoY. Billings exceeded $1 billion in Q4 for the first time, up 10% YoY; full-year billings $3.4 billion, up 10% YoY.
Read all positive updates
Company Guidance
DocuSign guided ARR to grow 8.25%–8.75% YoY (8.5% midpoint) to $3.551B by the end of Q4 FY27, with IAM expected to be ~18% of ARR (pushing IAM to well over $600M ARR); Q1 revenue of $822M–$826M (≈+8% YoY at midpoint) and full‑year FY27 revenue of $3.484B–$3.496B (≈+8% YoY at midpoint); they expect ARR acceleration driven by gross new bookings (primarily IAM) and gross retention improvements with modest DNR improvement; non‑GAAP gross margin guided to 80.8%–81.2% in Q1 and 81.5%–82.0% for FY27, non‑GAAP operating margin to 29.0%–29.5% in Q1 and 30.0%–30.5% for FY27; non‑GAAP diluted weighted average shares of 196–201M in Q1 and 190–195M for FY27; beginning FY27 they will only guide to total revenue (subscription was 98% of FY26 revenue), will de‑emphasize billings as a top metric, and announced an expanded repurchase authorization bringing total remaining buyback capacity to $2.6B.DocuSign Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
88
Very Positive
Cash Flow
91
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.22B | 2.98B | 2.76B | 2.52B | 2.11B |
| Gross Profit | 2.56B | 2.36B | 2.19B | 1.98B | 1.64B |
| EBITDA | 562.16M | 357.30M | 195.59M | 2.76M | 21.44M |
| Net Income | 309.08M | 1.07B | 73.98M | -97.45M | -69.98M |
Balance Sheet | |||||
| Total Assets | 4.23B | 4.01B | 2.97B | 3.01B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 867.01M | 963.55M | 1.05B | 1.03B | 802.82M |
| Total Debt | 185.12M | 124.43M | 143.05M | 888.29M | 882.23M |
| Total Liabilities | 2.31B | 2.01B | 1.84B | 2.40B | 2.27B |
| Stockholders Equity | 1.92B | 2.00B | 1.13B | 617.29M | 275.50M |
Cash Flow | |||||
| Free Cash Flow | 1.06B | 920.28M | 887.13M | 429.11M | 445.07M |
| Operating Cash Flow | 1.17B | 1.02B | 979.53M | 506.76M | 506.47M |
| Investing Cash Flow | -126.78M | -312.88M | 44.61M | -191.20M | -162.91M |
| Financing Cash Flow | -1.10B | -838.79M | -946.04M | -98.26M | -394.62M |
DocuSign Technical Analysis
Positive
45.74
Price Trends
47.61
Positive
48.88
Positive
60.37
Negative
Market Momentum
1.75
Negative
57.90
Neutral
74.53
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 45.74 is below the 20-day moving average (MA) of 49.13, below the 50-day MA of 47.61, and below the 200-day MA of 60.37, indicating a neutral trend. The MACD of 1.75 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.53 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 52 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $32.81B | 15.10 | 21.79% | ― | 4.98% | 103.70% | |
78 Outperform | $10.71B | 33.99 | 15.65% | ― | 8.16% | -70.70% | |
71 Outperform | $4.68B | 34.58 | 10.69% | ― | 25.42% | 125.90% | |
69 Neutral | $5.37B | -209.81 | -6.24% | ― | 24.90% | -233.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.00B | -11.62 | -92.84% | ― | 9.47% | 31.43% | |
47 Neutral | $4.18B | -27.11 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
DOCU
DocuSign
50.94
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DocuSign Corporate Events
Executive/Board ChangesShareholder Meetings
DocuSign Shareholders Approve Directors, Auditor and Pay Plan
Positive
Jun 3, 2026
At its June 1, 2026 annual meeting, Docusign shareholders representing about 87% of eligible stock approved three directors, re-electing James Beer, Cain A. Hayes and Allan Thygesen to three-year terms. Investors also ratified PricewaterhouseCoope...
Business Operations and StrategyExecutive/Board Changes
DocuSign Adds AI-Focused Leader to Board of Directors
Positive
May 6, 2026
Docusign, a leader in electronic signatures and intelligent agreement management, serves over 1.8 million customers and more than a billion users in over 180 countries with a platform that digitizes and streamlines the handling of business agreeme...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
DocuSign Appoints Brian Roberts as Independent Board Director
Positive
Mar 6, 2026
DocuSign announced that its board of directors has appointed Brian Roberts to fill an existing vacancy as an independent Class I director, effective March 5, 2026, with a term running until the company’s 2028 annual meeting of stockholders. ...
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.