revenue
3499–3507 $million
FY 2027
official guidance
DOCUSIGN, INC.
Last · —$75.23+2.92 (+4.04%)live · yahoo · 2h ago
Market cap$14.46B—
P/E · TTM45.2fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $3.4B |
|---|---|
| Operating income | $402.0M |
| Net income | $329.9M |
| Free cash flow | $1.2B |
| Operating margin | 12.0% |
| Net margin | 9.8% |
| Return on equity | 19.2% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution and capital returns are offset by modest growth and an unproven IAM monetization thesis.
HOLD: DocuSign delivered a strong quarter—revenue rose 9% to $876 million, non-GAAP operating margin reached 31.6%, free cash flow was $296 million, and FY27 revenue guidance increased to $3.499-$3.507 billion. IAM adoption is encouraging, rising to 15.1% of ARR with a target of 18%-19% exiting FY27, but the core growth rate remains modest and management still has not quantified how much IAM expansion is truly incremental or demonstrated that AI integrations will create a durable new distribution channel.
Themes
- Iam Adoption
- Agreement Intelligence
- Mcp Connectors
- Cloud Migration
- Large Customer Growth
- Share Repurchase
Near term
Q3 revenue guidance of $886-$890 million implies 9% year-over-year growth at the midpoint, aided by a 1% FX tailwind.
IAM ARR mix, large-customer deal growth, and direct-customer NDR will determine whether the raised FY27 outlook is sustainable.
Cloud migration should be largely complete by fiscal year-end, but gross margin is still expected to decline slightly year over year.
$2.1 billion of remaining repurchase authorization and a declining share count can support EPS while revenue growth remains moderate.
Longer term
IAM is gaining traction in the installed base: customers with over $300,000 of ACV grew 14% and IAM is expected to reach 18%-19% of ARR by FY27 exit.
The 300 million-document corpus, private agreement data, workflow depth, and lower marginal costs than external-LLM architectures could form a meaningful competitive moat if accuracy and adoption translate into pricing power.
Competitive risk remains material: customers may access agreement intelligence through OpenAI, Anthropic, Google, Microsoft, Slack, or other application layers, potentially weakening DocuSign's control of the engagement layer.
Expansion is beginning to contribute more to NDR, but management gave no typical contract uplift or quantified split between migrated spend and incremental wallet expansion.
Red flags
Management repeatedly described MCP and connector adoption as early and did not quantify revenue contribution, conversion, or incremental customer acquisition from these channels.
In response to direct analyst pressure, management would not disclose the level of IAM expansion or distinguish reclassified e-signature/CLM spend from genuinely incremental contract value.
The 9% revenue growth outlook includes material FX support, while ARR growth is only guided to 8.5%-9.0%; underlying acceleration is therefore not yet decisive.
Gross margin remains under pressure from cloud migration, and the call offered no quantified long-term margin impact from AI workloads or infrastructure investment.
Forward outlook
revenue growth
9 pct
FY 2027
official guidance
gross margin
81.5–82 pct
FY 2027
official guidance
operating margin
31–31.5 pct
FY 2027
official guidance
revenue
886–890 $million
Q3 2027
official guidance
gross margin
81.5–81.9 pct
Q3 2027
official guidance
operating margin
31.3–31.7 pct
Q3 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-18
- Iam Adoption
- Recurring Revenue
- Cash Generation
- Stock Based Compensation
- Cloud Commitments
- International Growth
- Platform Competition
Red flags
- Stock-based compensation was $622.3 million in fiscal 2026, equal to roughly 19% of $3.22 billion of revenue; 23.8 million RSUs were outstanding at year-end, with 83.5 million shares reserved for future issuance.
- Net income fell to $309.1 million in fiscal 2026 from $1.068 billion in fiscal 2025 despite $3.22 billion of revenue, making the prior-year earnings level a poor baseline for assessing normalized profitability.
- Docusign has a remaining minimum commitment of $280.4 million to a public cloud computing provider through fiscal 2030, in addition to $84.6 million of other noncancelable commitments due after January 31, 2026.
- The IAM growth strategy requires material go-to-market changes, including new sales segments, territories and performance-based compensation, while the product remains in an early growth phase relative to the core eSignature business.
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$1.18
Est. revenue
888.8M