Docusign beats estimates as AI platform drives growth

Investing.com -- DocuSign Inc (NASDAQ: DOCU) reported fourth quarter results that exceeded analyst expectations, with adjusted earnings per share of $1.01 beating the consensus estimate of $0.95 by $0.06. Revenue reached $836.9 million, surpassing the analyst estimate of $827.91 million and representing an 8% increase YoY.

The company’s stock rose 1.2% in after-hours trading Tuesday following the results. For fiscal 2027, Docusign issued revenue guidance of $3.48 billion to $3.50 billion, with a midpoint of $3.49 billion that exceeds the analyst consensus of $3.42 billion.

"Docusign’s AI-native IAM platform has established clear market leadership as the agreement system of action for companies of all sizes," said Allan Thygesen, CEO of Docusign. "In 2026, customers using IAM represented over $350 million in ARR, and Docusign reached record highs for operating margin and free cash flow."

Subscription revenue for the quarter was $819.0 million, up 8% YoY, while billings increased 10% to $1.0 billion. The company’s Intelligent Agreement Management platform represented 10.8% of total annual recurring revenue as of January 31, 2026, up from 2.3% a year earlier.

Free cash flow for the quarter reached $350.2 million, compared to $279.6 million in the same period last year. Docusign repurchased $269.1 million of common stock during the quarter, up from $161.7 million in the prior-year period.

For the first quarter of fiscal 2027, Docusign expects revenue of $822 million to $826 million, representing 8% growth at the midpoint. The company’s Board of Directors authorized an additional $2.0 billion for its stock repurchase program, bringing total remaining authorization to $2.6 billion as of March 17, 2026.

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