DocuSign (DOCU) AI Stock Analysis

• Market Cap: $16.89B
• Dividend Yield: N/A
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 63.4
• Beta (1Y): 1.28
• Revenue Growth: 8.29%
• EPS Growth: -71.36%
• Country: US
• Employees: 6,838
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.92
• Shares Outstanding: 201,104,110
• 10 Day Avg. Volume: 2,891,246
• 30 Day Avg. Volume: 3,101,982
• PEG Ratio: 0.01
• Price to Book (P/B): 9.87
• Price to Sales (P/S): 6.64
• P/FCF Ratio: 21.48
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 4.92
• Enterprise Value/Gross Profit: 6.20
• Enterprise Value/Ebitda: 31.98
• 1Y Price Target: $97.14
• Price Target Upside: 19.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 77 Outperform
• Price Target: $91.00 ▲(11.63% Upside)

DocuSign's overall stock score of 77 reflects its strong financial performance and positive earnings call insights, which highlight robust growth and strategic innovation. The technical analysis indicates moderate bullish momentum, though the high valuation suggests caution. The company's focus on AI and market expansion positions it well for future growth, despite some margin pressures from cloud migration costs.

Positive Factors

Revenue Growth

DocuSign's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation allows DocuSign to reinvest in growth opportunities and return capital to shareholders, enhancing financial stability.

AI Innovation

AI innovation in DocuSign's IAM platform enhances product offerings, potentially increasing competitive advantage and market share.

Negative Factors

Cloud Migration Costs

Ongoing cloud migration costs are pressuring margins, which could affect profitability if not managed effectively over the long term.

Challenging Comparisons

Difficult year-over-year comparisons may impact perceived growth, potentially affecting investor confidence and future revenue expectations.

Earnings Volatility

Significant EPS decline suggests earnings volatility, which may indicate operational challenges or market pressures affecting long-term profitability.

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 automates workflows across the entire agreement process; Insights that use artificial intelligence (AI) to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce; Negotiate for Salesforce that supports for approvals, document comparisons, and version control; Analyzer, which helps customers understand what they're signing before they sign it; and CLM+ that provide AI-driven contract lifecycle management. The company provides Guided Forms, which enable complex forms to be filled via an interactive and step-by-step process; Click that supports no-signature-required agreements for standard terms and consents; Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Payments that enables customers to collect signatures and payment; Remote Online Notary is a solution using audio-visual and identify verification technologies to enable notarization; and Monitor using advanced analytics to track DocuSign eSignature web, mobile, and API account. It offers industry-specific cloud offerings, including Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally; Rooms for Mortgage, which offers digital workspace to create and close mortgages; FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise, commercial, and small businesses. The company was incorporated in 2003 and is headquartered in San Francisco, California.

How the Company Makes Money

DocuSign generates revenue primarily through subscription fees for its cloud-based software services. The company offers various subscription plans tailored to different customer needs, ranging from individual users to large enterprises. Key revenue streams include the sale of eSignature licenses, which allow users to digitally sign documents, and additional features such as document storage, templates, and advanced security options. DocuSign also benefits from partnerships with major technology providers and integrations with popular business applications like Salesforce, Microsoft, and Google, enhancing its market reach and driving customer acquisition. The company's recurring revenue model, characterized by annual or multi-year contracts, provides a stable income stream while allowing for scalability as more customers adopt digital solutions.

DocuSign Financial Statement Overview

Summary

DocuSign demonstrates strong financial health with solid profitability, a stable balance sheet, and robust cash flows. While revenue growth has moderated, the company maintains strong margins and cash generation, positioning it well for sustainable operations.

Income Statement

DocuSign's income statement shows strong profitability with a gross profit margin consistently above 79% and a net profit margin improving to 9.08% TTM. Revenue growth has slowed to 2.13% TTM, indicating a maturing growth phase. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.06 TTM, indicating low leverage. Return on equity is healthy at 14.06% TTM, showing effective use of equity. The equity ratio is stable, suggesting a strong capital structure.

Cash Flow

Cash flow metrics are robust with a free cash flow growth rate of 2.15% TTM and a high free cash flow to net income ratio of 0.90. Operating cash flow is strong, covering net income comfortably, indicating good cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.10B	2.98B	2.76B	2.52B	2.11B	1.45B
Gross Profit	2.46B	2.36B	2.19B	1.98B	1.64B	1.09B
EBITDA	476.06M	357.30M	195.59M	2.76M	21.44M	-127.60M
Net Income	280.97M	1.07B	73.98M	-97.45M	-69.98M	-243.27M
Balance Sheet
Total Assets	3.95B	4.01B	2.97B	3.01B	2.54B	2.34B
Cash, Cash Equivalents and Short-Term Investments	844.46M	963.55M	1.05B	1.03B	802.82M	773.50M
Total Debt	126.94M	124.43M	143.05M	888.29M	882.23M	915.75M
Total Liabilities	1.96B	2.01B	1.84B	2.40B	2.27B	2.01B
Stockholders Equity	1.99B	2.00B	1.13B	617.29M	275.50M	325.74M
Cash Flow
Free Cash Flow	935.75M	920.28M	887.13M	429.11M	445.07M	214.56M
Operating Cash Flow	1.04B	1.02B	979.53M	506.76M	506.47M	296.95M
Investing Cash Flow	-131.37M	-312.88M	44.61M	-191.20M	-162.91M	81.23M
Financing Cash Flow	-926.70M	-838.79M	-946.04M	-98.26M	-394.62M	-58.98M

DocuSign Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 81.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 81.52 is above the 20-day moving average (MA) of 80.87, above the 50-day MA of 77.05, and below the 200-day MA of 82.84, indicating a neutral trend. The MACD of 2.11 indicates Positive momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOCU.

DocuSign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZM	78 Outperform	25.29B	22.26	13.27%	―	3.63%	36.57%
DOCU	77 Outperform	$16.89B	63.38	14.23%	―	8.29%	-71.36%
MNDY	68 Neutral	10.49B	278.72	3.35%	―	30.24%	-6.69%
KC	61 Neutral	4.52B	-13.89	-38.05%	―	20.42%	-9.39%
GTLB	61 Neutral	7.92B	-1,412.80	-0.82%	―	28.97%	98.96%
ASAN	51 Neutral	3.28B	-15.54	-92.63%	―	9.74%	22.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

DocuSign Corporate Events

DocuSign Appoints New Board Chair Amid Strong Q2 Results

On September 4, 2025, DocuSign announced the appointment of Mike Rosenbaum to its Board of Directors, effective September 3, 2025, and James Beer as the new Board Chair. The company reported strong financial results for the second quarter of fiscal 2026, with a 9% year-over-year revenue increase to $800.6 million, driven by AI innovation launches and go-to-market changes. DocuSign also introduced new AI-powered capabilities in its IAM platform, enhancing agreement management processes. These developments are expected to strengthen DocuSign’s market position and continue its transformation into an Intelligent Agreement Management company.