Companies /Technology

DocuSign Inc

NASDAQ: DOCU Software - Application
$65.39
▲ $0.75 (+1.16%) today
Markets closed · 9:08pm ET

Q1 2026 Earnings

Reported Jun 5, 2025, 4:22pm ET · SEC source
$0.90
Beat +10.46%
EPS · est. $0.81
$763.7M
Beat +1.97%
Revenue · est. $748.9M
−3.0%
Trailing market
DOCU vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+8%+16%Jun 5Jun 6report 4:22pm ETearnings+1.2%−4.4%
0+8%+16%Jun 5Jun 6earnings+1.2%−4.4%
DOCU −4.4%S&P 500 +1.2%
0+8%+16%Jun 5Jun 6report 4:22pm ETearnings+1.3%−4.4%
0+8%+16%Jun 5Jun 6earnings+1.3%−4.4%
DOCU −4.4%NASDAQ +1.3%
0+8%+16%Jun 4Jun 13report 4:22pm ETearnings+0.8%−5.2%
0+8%+16%Jun 4Jun 13earnings+0.8%−5.2%
DOCU −5.2%S&P 500 +0.8%
0+8%+16%Jun 4Jun 13report 4:22pm ETearnings+0.8%−5.2%
0+8%+16%Jun 4Jun 13earnings+0.8%−5.2%
DOCU −5.2%NASDAQ +0.8%
−18.97%
Day of report
+4.38%
Next session
−1.62%
One week
+1.43%
30 days

S&P 500 over the same 30 days: +4.45%.

Did DOCU Beat Earnings? Q1 2026 Results

DocuSign delivered a strong fiscal Q1 2026, beating on both the top and bottom lines even as a sharp post-earnings stock selloff signaled investor unease about the company's billings trajectory. Adjusted EPS of $0.90 topped the $0.81 consensus estimate by 10.46%, while revenue climbed 7.6% year over year to $763.65 million, edging past the $748.92 million Wall Street had expected by 1.97%. The primary engine behind the quarter's profitability was meaningful operating leverage, with GAAP operating income more than doubling to $60.26 million and non-GAAP operating margin expanding to 29.5%. The real complexity, however, lay in billings, where a go-to-market transition tied to the company's Intelligent Agreement Management platform dampened early renewals and contributed to management trimming full-year billings guidance. Looking ahead, DocuSign projected Q2 revenue of $777 million to $781 million and full-year fiscal 2026 revenue of $3.15 billion to $3.16 billion, with non-GAAP operating margin guided between 27.8% and 28.8% for the year.

Key Takeaways
  • 8% year-over-year subscription revenue growth
  • Non-GAAP operating margin expansion to 29.5% from 28.5%
  • Surpassed 10,000 Intelligent Agreement Management customers
  • Absence of restructuring charges that were $29.1M in the year-ago quarter

“Q1 was an important quarter for Docusign's long-term transformation as we delivered on an ambitious product roadmap and surpassed 10,000 Intelligent Agreement Management customers.”

DocuSign CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026 (quarter ending July 31, 2025), Docusign guided total revenue of $777M to $781M, subscription revenue of $760M to $764M, billings of $757M to $767M, non-GAAP gross margin of 80.5% to 81.5%, non-GAAP operating margin of 26.5% to 27.5%, and non-GAAP diluted weighted-average shares of 210M to 215M. For full fiscal year 2026 (ending January 31, 2026), the company guided total revenue of $3,151M to $3,163M, subscription revenue of $3,083M to $3,095M, billings of $3,285M to $3,339M, non-GAAP gross margin of 80.7% to 81.7%, non-GAAP operating margin of 27.8% to 28.8%, and non-GAAP diluted weighted-average shares of 210M to 215M. Foreign currency impact on revenue growth is expected to be neutral for both periods.

DOCU YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$300.0M$600.0M$709.6M$763.7MRevenue$560.2M$606.4MGross Profit$22.6M$60.3MOperating Income$33.8M$72.1MNet Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

DOCU Revenue by Segment

Subscription$746.2M+8.0%
Professional Services and Other
Professional Services$17.5M−4.0%

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