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DocuSign
(NASDAQ:DOCU)
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Rating:76Outperform
Price Target:
$53.00
▲(15.87% Upside)
Action:Reiterated
Date:06/06/26
The score is supported by strong cash generation, improved balance-sheet strength, and positive FY27 guidance for accelerating ARR/revenue with expanding operating margins. Offsetting factors are weaker technical positioning versus key moving averages and a P/E that looks demanding without dividend support, plus execution risks from cloud-migration margin pressure and still-nascent enterprise IAM adoption.
Positive Factors
Strong free cash flow generation
DocuSign's sustained TTM operating cash flow (~$1.24B) and robust free cash flow (~$1.12B) provide durable funding for R&D, strategic M&A, and shareholder returns. High cash conversion reduces refinancing risk, funds buybacks, and supports reinvestment in product and sales over the next several quarters.
Negative Factors
Muted trailing revenue growth
TTM revenue growth near 2.1% shows a concerning slowdown versus historical trends. Persistently low top-line expansion reduces leverage benefits on fixed costs, limits absolute dollar margin expansion, and makes meeting guidance and investor expectations hinge on re-accelerating ARR and enterprise upsells.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
DocuSign's sustained TTM operating cash flow (~$1.24B) and robust free cash flow (~$1.12B) provide durable funding for R&D, strategic M&A, and shareholder returns. High cash conversion reduces refinancing risk, funds buybacks, and supports reinvestment in product and sales over the next several quarters.
Read all positive factors
DocuSign Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, revealing which areas are contributing most to growth and where DocuSign might focus its strategic efforts.
Breaks down revenue across different business segments, revealing which areas are contributing most to growth and where DocuSign might focus its strategic efforts.
Data provided by:
The Fly
The FlyDocuSign (DOCU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.74B
Dividend YieldN/A
Average Volume (3M)4.21M
Price to Earnings (P/E)29.2
Beta (1Y)1.10
Revenue Growth8.42%
EPS Growth-70.89%
CountryUS
Employees6,838
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.57
Shares Outstanding190,944,610
10 Day Avg. Volume5,506,135
30 Day Avg. Volume4,210,595
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 Cap0.89
Enterprise Value/Revenue2.36
Enterprise Value/Gross Profit2.98
Enterprise Value/Ebitda11.97
Forecast
1Y Price Target
$55.90Price Target Upside22.21% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)4.52
Revenue Forecast (FY)$3.50B
DocuSign Business Overview & Revenue Model
Company Description
DocuSign, Inc. is a global provider of electronic signature software, operating both within the United States and internationally. The company's core offering is an e-signature solution that empowers businesses to digitally prepare, execute, final...
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:Jun 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit ARR mix gains for IAM, solid revenue growth (+9% YoY), improved operating margin (32.0%), robust free cash flow (35% margin) and aggressive share repurchases. Product and AI innovation, meaningful partnerships and new pricing models position DocuSign for further enterprise expansion. Challenges noted include ongoing cloud migration pressure on gross margins, the early stage of IAM enterprise penetration, rep/partner enablement needs, and near-term comparability headwinds from last year’s elevated digital usage. On balance, the strengths and forward-looking execution plans materially outweigh the challenges.Positive Updates
Revenue Growth
Q1 revenue of $830 million, up 9% year-over-year (approximately +1.6 percentage points benefit from FX).
Negative Updates
Gross Margin Pressure from Cloud Migration
Non-GAAP gross margin was 81.5% in Q1 and is expected to decline slightly year-over-year for FY27 as the company completes the bulk of its cloud migration—full-year gross margin guidance 81.5%–82.0%.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth
Q1 revenue of $830 million, up 9% year-over-year (approximately +1.6 percentage points benefit from FX).
Read all positive updates
Company Guidance
DocuSign guided to accelerating ARR growth of 8.25%–8.75% year‑over‑year (8.5% at the midpoint) to just over $3.5B ARR by the end of FY‑27, with IAM expected to be ~18% of ARR (driving IAM to over $600M ARR); management said ARR growth will be driven by gross new bookings and gross retention improvements and that DNR should modestly improve. For revenue they expect Q2 of FY‑27 of $865M–$869M (≈8% YoY at the midpoint) and full‑year revenue of $3.490B–$3.502B (≈9% YoY at the midpoint), after FX and digital add‑on comparisons. Profitability guidance called for non‑GAAP gross margin of 81.5%–81.7% in Q2 and 81.5%–82.0% for FY‑27, and non‑GAAP operating margin of 29.7%–30.2% in Q2 and 30.5%–31.0% for the year (a +0.5% midpoint increase versus prior guidance). They also forecast reduced share counts from buybacks with fully diluted weighted average shares of 191M–196M for Q2 and 190M–195M for FY‑27, with buyback activity expected to more than offset dilution.DocuSign Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.29B | 3.22B | 2.98B | 2.76B | 2.52B | 2.11B |
| Gross Profit | 2.61B | 2.56B | 2.36B | 2.19B | 1.98B | 1.64B |
| EBITDA | 648.86M | 562.16M | 357.30M | 195.59M | 2.76M | 21.44M |
| Net Income | 315.19M | 309.08M | 1.07B | 73.98M | -97.45M | -69.98M |
Balance Sheet | ||||||
| Total Assets | 3.98B | 4.23B | 4.01B | 2.97B | 3.01B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 814.18M | 867.01M | 963.55M | 1.05B | 1.03B | 802.82M |
| Total Debt | 183.33M | 185.12M | 124.43M | 143.05M | 888.29M | 882.23M |
| Total Liabilities | 2.16B | 2.31B | 2.01B | 1.84B | 2.40B | 2.27B |
| Stockholders Equity | 1.82B | 1.92B | 2.00B | 1.13B | 617.29M | 275.50M |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 1.06B | 920.28M | 887.13M | 429.11M | 445.07M |
| Operating Cash Flow | 1.24B | 1.17B | 1.02B | 979.53M | 506.76M | 506.47M |
| Investing Cash Flow | -141.10M | -126.78M | -312.88M | 44.61M | -191.20M | -162.91M |
| Financing Cash Flow | -1.21B | -1.10B | -838.79M | -946.04M | -98.26M | -394.62M |
DocuSign Technical Analysis
Neutral
45.74
Price Trends
46.96
Negative
46.65
Negative
57.26
Negative
Market Momentum
-0.78
Negative
50.07
Neutral
78.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCU, the sentiment is Neutral. The current price of 45.74 is above the 20-day moving average (MA) of 44.87, below the 50-day MA of 46.96, and below the 200-day MA of 57.26, indicating a neutral trend. The MACD of -0.78 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 78.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOCU.
DocuSign Risk Analysis
DocuSign disclosed 49 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.74B | 29.15 | 16.36% | ― | 8.42% | -70.89% | |
76 Outperform | $25.32B | 12.28 | 21.79% | ― | 4.98% | 103.70% | |
71 Outperform | $4.08B | 34.08 | 10.69% | ― | 25.42% | 125.90% | |
69 Neutral | $4.49B | ― | -2.66% | ― | 24.90% | -233.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.69B | -10.63 | -92.84% | ― | 9.47% | 31.43% | |
45 Neutral | $2.87B | -17.43 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
DOCU
DocuSign
45.77
-31.87
-41.05%
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MNDY
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GTLB
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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.