EarningsQ2 2027 Earnings Report
MX:DOCU Q2 2027 EPS Results
Actual EPS$19.70
Consensus EPS$18.43
Beat/MissBeat by +$1.27
One Year Ago EPS$15.62
MX:DOCU Q2 2027 Revenue Results
Actual Revenue$14.87B
Expected Revenue$14.73B
Beat/MissBeat by +$144.86M
YoY Revenue Growth+9.38%
Earnings Announcement Details
QuarterQ2 2027
Date09/03/2026
TimeAfter Close
Conference CallThursday, September 3, 2026
MX:DOCU Upcoming Earnings
DocuSign's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:DOCU Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
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.Company Guidance
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.
IAM Adoption Accelerated
Intelligent Agreement Management (IAM) accounted for 15.1% of total ARR in Q2, up from 12.6% in Q1. IAM adoption slightly exceeded expectations and was strong across all geographic regions, customer segments, and both commercial and enterprise markets.
IAM Document Scale and Cost Efficiency
Customers have ingested more than 300 million documents through IAM's Agreement Manager. DocuSign stated that IAM's AI-native architecture processes workloads at significantly lower marginal costs than offerings that route to external LLMs, enabling a significant sequential increase in documents ingested while maintaining high gross margins.
Expansion of AI and Agentic Capabilities
DocuSign launched IAM AI Assistant and Agentic capabilities, including contract analysis and redlining, Agentic workflows, prebuilt agents for document intake and vendor renewal, Agent Studio for custom agents, and the ability to embed agents directly into the workflow builder. In user testing, the AI assistant cut the time required to summarize, review, and finalize agreements such as NDAs in half.
Broader Ecosystem Integrations
DocuSign announced general availability of its Slack app, an integration with Perplexity, Google Cloud's Gemini Enterprise for Legal, and additional connectors with Anthropic, Gemini, OpenAI, and Microsoft Copilot. The DocuSign MCP server was expected to reach general availability at the end of September 2026, and cumulative active MCP accounts more than quadrupled during the quarter.
CLM and IAM Integration
IAM Agreement Manager's integration into DocuSign CLM became generally available, allowing all CLM customers to use a single AI-driven repository for eSign and CLM. The integration connects CLM workflow capabilities with IAM's AI-powered search and extraction, MCP connectivity, and Agentic suite; customer reception was described as highly encouraging.
AI-Assisted Web Forms Availability
AI-assisted Web Forms became generally available in Q2, enabling users to transform static documents into interactive, shareable forms and unlock the data associated with legacy documents.
Customer Wins Across Industries and Functions
Salesforce, Oppenheimer, SailPoint, Upstart, Optimizely, and HydroCorp adopted or deployed IAM for agreement data management, onboarding, AI-powered workflows, sales contract processing, borrower workflows, quote-to-revenue acceleration, and sales process automation. HydroCorp reduced the time required to prepare a new contract from 2 to 3 hours to 20 minutes.
Improving Retention and Expansion
Dollar net retention from direct customers was 103% on a rounded basis, up modestly from 102% last quarter and the prior year. Management said expansion contributed a larger portion of the improvement, making retention gains more balanced between retention and expansion.
Customer Base and Engagement Growth
Total customer growth accelerated to nearly 10% year-over-year, reaching more than 1.9 million customers. Growth was driven particularly by the digital channel, while envelopes sent and contract utilization both grew year-over-year.
Growth in Larger Customers and Deal Sizes
Customers spending over $300,000 in ACV increased 14% year-over-year to nearly 1,300, marking the second consecutive quarter of double-digit growth. Management also cited the largest deal ever completed in the U.S. public sector and the largest deal ever completed in Latin America.
Operating Margin Expansion
Non-GAAP operating income was $277 million, up 16% year-over-year. Non-GAAP operating margin was 31.6%, up 180 basis points year-over-year and 160 basis points above the guidance midpoint.
Earnings Per Share Improvement
Non-GAAP diluted EPS was $1.16, up 26% year-over-year, while GAAP diluted EPS was $0.40, up 33% year-over-year. The improvement was attributed to better operating results, lower stock-based compensation, and a lower share count partly resulting from stock repurchases.
Free Cash Flow and Operating Leverage
Q2 free cash flow was $296 million, up over 35% year-over-year and representing a 34% margin. Trailing 12-month free cash flow was $1.2 billion, nearly 3 times the amount generated in full-year fiscal 2023, supported by improving operating leverage and working capital management.
Strong Balance Sheet and Shareholder Returns
DocuSign ended Q2 with just under $1 billion of cash, cash equivalents, and investments and no debt. The company repurchased $307 million of stock, reducing total diluted shares outstanding by 8% year-over-year to 193 million, with $2.1 billion remaining under the future repurchase authorization.
Improved Stock-Based Compensation Efficiency
Stock-based compensation expense declined to 17% of revenue in Q2, an improvement of 3 percentage points year-over-year.
Revenue Guidance Raised
Fiscal 2027 as-reported revenue guidance was raised to $3.499 billion to $3.507 billion, representing 9% year-over-year growth at the midpoint, including an approximately 1 percentage point FX tailwind. The update passed through the entire Q2 outperformance and included additional second-half outperformance, partially offset by approximately $4 million of incremental foreign currency headwinds.
ARR Guidance Raised
Fiscal 2027 ARR growth guidance was raised to 8.5% to 9.0% year-over-year, compared with 8.0% ARR growth in fiscal 2026. IAM ARR is now expected to represent 18% to 19% of total ARR exiting Q4 of fiscal 2027.
Continued Targeted Investment With Cost Discipline
DocuSign continued targeted investment in product innovation and IAM while managing hiring and resource allocation tightly. Headcount ended Q2 at 7,137 employees, up 3% year-over-year, with all year-over-year headcount growth coming from lower-cost locations. Management stated that operating margins had increased from the high teens four years ago to approximately 32%, while headcount was down around 10% from Q2 fiscal 2023 and revenue was up 40% over that period.
eSignature Market Position and Pricing Tests
Management said eSignature remains the premium product in the category, with strong consumer recognition and trust, robust internal tooling, richer security and compliance features, and regulatory recognition worldwide. DocuSign is testing pricing and packaging, including in Canada, and said the results there look good, although no broader geographic changes were announced.
Digital Channel Growth and Testing
Management credited the digital team with testing conversion rates, customer quality, and pricing and packaging while growing accounts nearly 10% in Q2.
MX:DOCU Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed