Companies /Technology

DocuSign Inc

NASDAQ: DOCU Software - Application
$66.03
▼ $2.54 (−3.70%) today
Markets open · 3:24pm ET

Q2 2027 Earnings

Reported Sep 3, 2026, 4:09pm ET · SEC source
$1.16
Beat +6.77%
EPS · est. $1.09 Adjusted
$875.7M
Beat +1.00%
Revenue · est. $867.1M
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Sep 3Sep 4report 4:09pm ETearnings−0.4%−5.8%
−8%−4%0Sep 3Sep 4earnings−0.4%−5.8%
DOCU −5.8%S&P 500 −0.4%
−8%−4%0Sep 3Sep 4report 4:09pm ETearnings+0.1%−5.4%
−8%−4%0Sep 3Sep 4earnings+0.1%−5.4%
DOCU −5.4%NASDAQ +0.1%
−6%−3%0Sep 2Sep 11report 4:09pm ETearnings−1.0%−5.2%
−6%−3%0Sep 2Sep 11earnings−1.0%−5.2%
DOCU −5.2%S&P 500 −1.0%
−6%−3%0Sep 2Sep 11report 4:09pm ETearnings−0.3%−5.2%
−6%−3%0Sep 2Sep 11earnings−0.3%−5.2%
DOCU −5.2%NASDAQ −0.3%
+3.70%
Day of report
−4.87%
Next session
+1.97%
One week

Did DOCU Beat Earnings? Q2 2027 Results

Docusign posted a convincing fiscal second-quarter beat on Wednesday, with adjusted EPS of $1.16 topping the $1.09 consensus by 6.77%, extending the company's streak of beating consensus EPS estimates to four consecutive quarters. Revenue climbed 9.4% year over year to $875.75 million, edging past the $867.11 million consensus by 1.00%, as the company's Intelligent Agreement Management platform continued to gain traction, with IAM reaching 15.1% of total ARR as of July 31, up from 12.6% just one quarter prior. Margin discipline added to the story, with non-GAAP operating margin expanding to 31.6% from 29.8% a year ago and free cash flow reaching $295.76 million, a 34% margin, reflecting meaningful operating leverage across sales and R&D. Management raised its full-year fiscal 2027 revenue guidance to $3.50 billion to $3.51 billion and now expects IAM to represent 18% to 19% of total ARR by year-end, signaling growing confidence that its AI-driven platform strategy is translating into durable financial momentum.

Key Takeaways
  • IAM platform adoption accelerated to 15.1% of total ARR from 12.6% in Q1 FY27
  • Revenue grew 9% year-over-year including approximately 1.3% FX benefit
  • Non-GAAP operating margin expanded to 31.6% from 29.8% year-over-year
  • Free cash flow margin improved to 34% from 27% in the year-ago quarter
  • Sales and marketing expense as a percentage of revenue declined to 35.9% from 38.2% (GAAP)

“Docusign is raising its outlook as AI accelerates momentum across the business. We said IAM would be the agreement system of action, and this quarter we delivered. Our AI agents are now securely executing contract workflows end-to-end, and the IAM platform also ingested a record volume of agreements.”

DocuSign CEO, on the earnings call

Forward Guidance & Outlook

Docusign raised its fiscal year 2027 guidance. For Q3 FY27 (three months ending October 31, 2026), the company expects revenue of $886 million to $890 million (9% YoY midpoint growth), non-GAAP gross margin of 81.5%-81.9%, non-GAAP operating margin of 31.3%-31.7%, and non-GAAP diluted shares of 191-196 million. For full-year FY27 (year ending January 31, 2027), revenue guidance was raised to $3,499 million to $3,507 million (9% YoY midpoint growth), ARR growth of 8.50%-9.00%, non-GAAP gross margin of 81.5%-82.0%, non-GAAP operating margin of 31.0%-31.5%, and non-GAAP diluted shares of 190-195 million. The company expects IAM to represent approximately 18%-19% of total ARR exiting Q4 FY27. FX rates benefit guided revenue growth by approximately 1.0% for Q3 and 1.2% for FY27.

DOCU YoY Financials

Q2 2027 vs Q2 2026 · SEC filings Q2 2026 Q2 2027
$0$300.0M$600.0M$900.0M$800.6M$875.7MRevenue$635.2M$697.9MGross Profit$65.2M$117.6MOperating Income$63.0M$77.7MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

DOCU Revenue by Segment

Subscription
Professional Services

Figures from SEC filings and company reports. Not investment advice.