DocuSign (DOCU) AI Stock Analysis

• Market Cap: $14.97B
• Dividend Yield: N/A
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.31
• Revenue Growth: 7.85%
• EPS Growth: 935.80%
• Country: US
• Employees: 6,838
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.92
• Shares Outstanding: 202,062,770
• 10 Day Avg. Volume: 2,101,086
• 30 Day Avg. Volume: 2,174,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 5.47
• Enterprise Value/Gross Profit: 6.90
• Enterprise Value/Ebitda: 41.35
• 1Y Price Target: $94.50
• Price Target Upside: 23.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 79 Outperform
• Price Target: $87.00 ▲(14.11% Upside)

DocuSign's strong financial performance and positive earnings call are the most significant factors driving the score. Technical analysis presents mixed signals, and while valuation is reasonable, the lack of a dividend yield may deter some investors. Recent corporate events further bolster the company's strategic outlook.

Positive Factors

Business Trends

Management was confident in its plan to accelerate growth due to continued improvement in consumption trends and retention rates in its core e-sign business.

Market Position

Docusign is seen as a top mid-cap value play based on its valuation at a 25% discount to peers.

Product Development

Docusign's product story is broadening with the IAM suite and there is no change to the leading core signature business, which shows high single-digit growth and near 30% operating margin.

Negative Factors

Billings Shortfall

The impact was greater than expected, with less early renewals than anticipated, driving the billings shortfall in Q1.

Investor Sentiment

DOCU pressure in AH a result of Q1 billings miss, FY26 billings cut, flat QoQ NDR & lower QoQ >$300K customers at conflict with the narrative.

Revenue Guidance

Constant-currency FY26 billings guidance was reduced from 8% to 5.8% YoY, or 220 bps, due to embedding broader macro prudence and the early renewal dynamic.

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 exhibits strong financial health with significant revenue growth, improved profitability, and efficient cash flow management. The balance sheet is stable with low leverage, and the turnaround in profitability and cash flow signals a positive outlook.

Income Statement

DocuSign has shown impressive growth in its revenue, with a notable increase from $1.45 billion in 2021 to $3.03 billion in TTM (Trailing-Twelve-Months) of 2025. The gross profit margin remains strong at around 79%, indicating efficient cost management. Net profit margin improved significantly, reaching 36.5% in TTM 2025 from negative values in previous years, showcasing increased profitability. The company also improved its EBIT and EBITDA margins to 7.8% and 13.2% respectively, reflecting better operational efficiency.

Balance Sheet

The balance sheet indicates a healthy equity position with a debt-to-equity ratio of 0.07 in TTM 2025, signifying low leverage. Return on equity (ROE) has surged to 54.9% in TTM 2025, up from previous negative values, illustrating strong profitability relative to shareholder equity. The equity ratio stands at 51.1%, reflecting a balanced structure between equity and total assets, enhancing stability.

Cash Flow

DocuSign demonstrates strong cash flow management with a free cash flow of $916 million in TTM 2025. The free cash flow growth rate has been positive, and the operating cash flow to net income ratio is healthy, indicating efficient conversion of income into cash. The consistent positive free cash flow supports the company's operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.03B	2.98B	2.76B	2.52B	2.11B	1.45B
Gross Profit	2.40B	2.36B	2.19B	1.98B	1.64B	1.09B
EBITDA	400.69M	357.30M	195.59M	2.76M	21.44M	-127.60M
Net Income	1.11B	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	948.69M	963.55M	1.05B	1.03B	802.82M	773.50M
Total Debt	132.94M	124.43M	143.05M	888.29M	882.23M	915.75M
Total Liabilities	1.93B	2.01B	1.84B	2.40B	2.27B	2.01B
Stockholders Equity	2.01B	2.00B	1.13B	617.29M	275.50M	325.74M
Cash Flow
Free Cash Flow	916.03M	920.28M	887.13M	429.11M	445.07M	214.56M
Operating Cash Flow	1.01B	1.02B	979.53M	506.76M	506.47M	296.95M
Investing Cash Flow	-277.02M	-312.88M	44.61M	-191.20M	-162.91M	81.23M
Financing Cash Flow	-892.43M	-838.79M	-946.04M	-98.26M	-394.62M	-58.98M

DocuSign Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCU, the sentiment is Positive. The current price of 76.24 is above the 20-day moving average (MA) of 72.21, above the 50-day MA of 75.36, and below the 200-day MA of 82.90, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 75.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOCU.

DocuSign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCU	79 Outperform	$14.97B	14.34	70.20%	―	7.85%	935.80%
ZM	76 Outperform	$24.52B	21.99	13.60%	―	3.63%	36.57%
MNDY	68 Neutral	$9.51B	249.82	3.80%	―	30.24%	-6.69%
GTLB	62 Neutral	$7.88B	470.51	-0.63%	―	28.97%	98.96%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
ASAN	56 Neutral	$3.28B	―	-80.55%	―	9.74%	22.36%
KC	53 Neutral	$4.02B	―	-31.02%	―	20.42%	-9.39%

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.