Docusign ( (DOCU) ) has released its Q2 earnings. Here is a breakdown of the information Docusign presented to its investors.
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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 reported a 9% year-over-year increase in revenue, reaching $800.6 million, with subscription revenue contributing significantly to this growth. The company also achieved a 13% increase in billings, amounting to $818 million. Despite a decrease in professional services revenue, Docusign’s gross margins remained strong, with a GAAP gross margin of 79.3% and a non-GAAP gross margin of 82.0%. The company’s net cash provided by operating activities increased to $246.1 million, and free cash flow rose to $217.6 million.
Key strategic highlights include the launch of AI-powered Intelligent Agreement Management (IAM) capabilities, enhancing the value of agreements across their lifecycle. Docusign’s integration with CLEAR for ID verification and the introduction of custom extraction features in Docusign Navigator are notable advancements. The company was also recognized as a leader in AI-enabled buy-side CLM applications by IDC MarketScape. Governance updates include the appointment of Mike Rosenbaum to the board and James Beer as the next Board Chair.
Looking ahead, Docusign anticipates continued growth with projected revenue and subscription revenue increases of 7% and 8%, respectively, for the fiscal year ending January 31, 2026. The company’s strategic focus on AI and IAM solutions positions it well for future expansion and innovation in the agreement management space.