Strong Revenue and Profitability
DocuSign reported Q1 fiscal 2026 revenue of $764 million, showing 8% year-over-year growth. Operating margins improved by 1% to 29.5%, and the company achieved a 30% free cash flow margin.
Successful Launch and Adoption of IAM
The IAM platform has become the fastest-growing offering in DocuSign's history, with over 10,000 customers. IAM sales exceeded expectations and are on track to account for a double-digit percentage of the subscription book of business by the end of Q4.
Continued Innovation
DocuSign introduced a series of new AI-powered features at its Momentum conference. These include Agreement Desk, Workspaces, and custom extractions, which enhance the Create, Commit, and Manage phases of the agreement life cycle.
Positive Trends in Customer Engagement
The company reported improvements in customer usage metrics, with increased envelope sending and customer contract utilization. Gross retention and dollar net retention also showed year-over-year improvements.
Shareholder Returns and Financial Position
DocuSign repurchased $183 million of stock in Q1 and announced an additional $1 billion in buybacks. The company has over $1.1 billion in cash, cash equivalents, and investments, with no debt.