DocuSign (DOCU)
NASDAQ:DOCU
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DocuSign
(NASDAQ:DOCU)
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Rating:73Outperform
Price Target:
$53.00
▲(11.91% Upside)
Action:ReiteratedDate:03/18/26
The score is driven primarily by strong cash flow generation, improved profitability, and a significantly strengthened balance sheet, reinforced by generally positive FY27 guidance and IAM traction. These positives are tempered by weak technical momentum (below key moving averages, negative MACD) and a premium P/E without dividend support.
Positive Factors
Durable free cash flow generation
DocuSign's sustained free cash flow exceeding $1B and a ~33% FCF margin provide durable internal funding for R&D, product investment, debt reduction, and shareholder returns. Strong cash conversion supports resilience through cycles and funds strategic initiatives without relying on external capital.
Negative Factors
Slowing top-line growth trajectory
A multi-year deceleration to mid-to-low single-digit revenue growth signals maturation of core eSignature markets and rising dependence on new product ramps like IAM. Slower top-line requires consistent execution on upsell and new offerings to preserve margin expansion and maintain investor expectations over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable free cash flow generation
DocuSign's sustained free cash flow exceeding $1B and a ~33% FCF margin provide durable internal funding for R&D, product investment, debt reduction, and shareholder returns. Strong cash conversion supports resilience through cycles and funds strategic initiatives without relying on external capital.
Read all positive factors
DocuSign (DOCU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.21B
Dividend YieldN/A
Average Volume (3M)5.39M
Price to Earnings (P/E)34.1
Beta (1Y)1.16
Revenue Growth8.45%
EPS Growth-69.85%
CountryUS
Employees6,838
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.01
Shares Outstanding194,427,930
10 Day Avg. Volume4,172,534
30 Day Avg. Volume5,394,803
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 Cap0.92
Enterprise Value/Revenue2.63
Enterprise Value/Gross Profit3.31
Enterprise Value/Ebitda15.07
Forecast
1Y Price Target
$62.69Price Target Upside32.37% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)4.44
Revenue Forecast (FY)$3.48B
DocuSign Business Overview & Revenue Model
Company Description
DocuSign, Inc. provides electronic signature software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which ...
How the Company Makes Money
DocuSign primarily makes money through subscription-based revenue from its cloud software offerings. Customers (individuals, small businesses, and enterprises) typically pay recurring fees for access to DocuSign’s eSignature product and related ag...
DocuSign Key Performance Indicators (KPIs)
Any
Billings
Reflects the total value of invoices sent to customers, indicating sales momentum and future revenue potential as these billings convert to recognized revenue.
Reflects the total value of invoices sent to customers, indicating sales momentum and future revenue potential as these billings convert to recognized revenue.
Data provided by:
The Fly
The FlyDocuSign Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational and financial progress—revenue and ARR growth of 8% YoY, record billings above $1B, first year with over $1B free cash flow, improved operating margins (30% FY non-GAAP), strong AI and IAM traction (IAM >$350M ARR and Navigator at 200M agreements), international and partner momentum, and an expanded share repurchase program. Offsetting items included modest gross margin pressure from cloud migration, GAAP EPS comparability headwinds, IAM still a relatively small portion of ARR (early renewal cohorts), and guidance that signals only modest acceleration in ARR/revenue growth for FY27. Overall, the positive execution, cash generation, AI/data advantages and clear IAM roadmap outweigh the noted headwinds and near-term risks, pointing to a constructive outlook but with caution around the pace of growth acceleration.Positive Updates
Top-Line Growth and Milestones
Q4 revenue of $837 million, up 8% year-over-year; full-year revenue $3.2 billion, up 8% year-over-year. Q4 subscription revenue $819 million, up 8% YoY; full-year subscription revenue $3.2 billion, up 9% YoY. Billings exceeded $1 billion in Q4 for the first time, up 10% YoY; full-year billings $3.4 billion, up 10% YoY.
Negative Updates
Moderate Growth Rate Relative to Expectations
Company growth remains mid-single-digit: ARR and revenue growth for FY26 both 8% YoY (ARR growth unchanged from FY25). FY27 guidance calls for modest acceleration only to ~8.5% ARR growth and ~8% revenue growth, indicating gradual rather than dramatic acceleration.
Read all updates
Q4-2026 Updates
Positive
Negative
Top-Line Growth and Milestones
Q4 revenue of $837 million, up 8% year-over-year; full-year revenue $3.2 billion, up 8% year-over-year. Q4 subscription revenue $819 million, up 8% YoY; full-year subscription revenue $3.2 billion, up 9% YoY. Billings exceeded $1 billion in Q4 for the first time, up 10% YoY; full-year billings $3.4 billion, up 10% YoY.
Read all positive updates
Company Guidance
DocuSign guided ARR to grow 8.25%–8.75% YoY (8.5% midpoint) to $3.551B by the end of Q4 FY27, with IAM expected to be ~18% of ARR (pushing IAM to well over $600M ARR); Q1 revenue of $822M–$826M (≈+8% YoY at midpoint) and full‑year FY27 revenue of $3.484B–$3.496B (≈+8% YoY at midpoint); they expect ARR acceleration driven by gross new bookings (primarily IAM) and gross retention improvements with modest DNR improvement; non‑GAAP gross margin guided to 80.8%–81.2% in Q1 and 81.5%–82.0% for FY27, non‑GAAP operating margin to 29.0%–29.5% in Q1 and 30.0%–30.5% for FY27; non‑GAAP diluted weighted average shares of 196–201M in Q1 and 190–195M for FY27; beginning FY27 they will only guide to total revenue (subscription was 98% of FY26 revenue), will de‑emphasize billings as a top metric, and announced an expanded repurchase authorization bringing total remaining buyback capacity to $2.6B.DocuSign Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
88
Very Positive
Cash Flow
91
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.22B | 2.98B | 2.76B | 2.52B | 2.11B |
| Gross Profit | 2.56B | 2.36B | 2.19B | 1.98B | 1.64B |
| EBITDA | 562.16M | 357.30M | 195.59M | 2.76M | 21.44M |
| Net Income | 309.08M | 1.07B | 73.98M | -97.45M | -69.98M |
Balance Sheet | |||||
| Total Assets | 4.23B | 4.01B | 2.97B | 3.01B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 867.01M | 963.55M | 1.05B | 1.03B | 802.82M |
| Total Debt | 185.12M | 124.43M | 143.05M | 888.29M | 882.23M |
| Total Liabilities | 2.31B | 2.01B | 1.84B | 2.40B | 2.27B |
| Stockholders Equity | 1.92B | 2.00B | 1.13B | 617.29M | 275.50M |
Cash Flow | |||||
| Free Cash Flow | 1.06B | 920.28M | 887.13M | 429.11M | 445.07M |
| Operating Cash Flow | 1.17B | 1.02B | 979.53M | 506.76M | 506.47M |
| Investing Cash Flow | -126.78M | -312.88M | 44.61M | -191.20M | -162.91M |
| Financing Cash Flow | -1.10B | -838.79M | -946.04M | -98.26M | -394.62M |
DocuSign Technical Analysis
Negative
47.36
Price Trends
47.45
Negative
57.02
Negative
66.00
Negative
Market Momentum
-0.13
Negative
48.60
Neutral
68.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCU, the sentiment is Negative. The current price of 47.36 is below the 20-day moving average (MA) of 47.46, below the 50-day MA of 47.45, and below the 200-day MA of 66.00, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 68.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOCU.
DocuSign Risk Analysis
DocuSign disclosed 52 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.21B | 34.08 | 15.65% | ― | 8.45% | -69.85% | |
70 Outperform | $24.76B | 14.57 | 20.57% | ― | 3.85% | 72.42% | |
67 Neutral | $3.41B | 63.93 | 9.88% | ― | 28.62% | 186.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $3.94B | ― | -6.24% | ― | 27.35% | 18.18% | |
60 Neutral | $4.12B | -21.74 | -13.37% | ― | 24.26% | 55.58% | |
57 Neutral | $1.48B | -12.84 | -94.12% | ― | 9.47% | 16.97% |
* Technology Sector Average
DOCU
DocuSign
47.36
-31.23
-39.74%
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DocuSign Corporate Events
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.