Companies /Technology

DocuSign Inc

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

Q3 2026 Earnings

Reported Dec 4, 2025, 4:06pm ET · SEC source
$1.01
Beat +10.30%
EPS · est. $0.92
$818.4M
Beat +1.35%
Revenue · est. $807.4M
+5.7%
Beating market
DOCU vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Dec 4Dec 5report 4:06pm ETearnings+0.2%−7.1%
−6%−3%0Dec 4Dec 5earnings+0.2%−7.1%
DOCU −7.1%S&P 500 +0.2%
−6%−3%0Dec 4Dec 5report 4:06pm ETearnings+0.4%−7.1%
−6%−3%0Dec 4Dec 5earnings+0.4%−7.1%
DOCU −7.1%NASDAQ +0.4%
−4%0+4%Dec 3Dec 12report 4:06pm ETearnings−0.3%+3.9%
−4%0+4%Dec 3Dec 12earnings−0.3%+3.9%
DOCU +3.9%S&P 500 −0.3%
−4%0+4%Dec 3Dec 12report 4:06pm ETearnings−1.5%+3.9%
−4%0+4%Dec 3Dec 12earnings−1.5%+3.9%
DOCU +3.9%NASDAQ −1.5%
−7.64%
Day of report
+0.56%
Next session
+8.28%
One week
+6.29%
30 days

S&P 500 over the same 30 days: +0.56%.

Did DOCU Beat Earnings? Q3 2026 Results

DocuSign delivered one of its strongest quarters in recent memory during fiscal Q3 2026, posting revenue of $818.35 million, up 8.4% year-over-year and ahead of the $807.42 million consensus estimate, while non-GAAP diluted EPS of $1.01 beat expectations of $0.92 by 10.30%. The primary engine behind the beat was subscription revenue, which climbed 9% year-over-year to $800.96 million, underscoring the durability of DocuSign's recurring revenue base even as professional services declined. CEO Allan Thygesen credited the results as among the most robust for top-line growth and profitability over the past two years, with billings rising 10% to $829.46 million and free cash flow surging to $262.90 million. The company's Intelligent Agreement Management platform crossing 25,000 customers added a strategic dimension to the financial story, signaling that its AI-driven expansion is gaining traction. Looking ahead, DocuSign guided Q4 revenue of $825 million to $829 million and reaffirmed full-year FY2026 revenue of approximately $3.21 billion, representing 8% growth, though the stock dipped nearly 5% following the print amid broader investor caution.

Key Takeaways
  • Growing customer investment in the IAM platform, surpassing 25,000 customers
  • Strong subscription revenue growth of 9% year-over-year
  • Improved operational efficiency driving non-GAAP operating margin expansion to 31.4%
  • Billings growth of 10% year-over-year to $829.5 million
  • Approximately 0.5% positive impact from foreign exchange rates on revenue growth

“Q3 was a strong quarter with growing customer investment into the IAM platform, where we now have more than 25,000 customers.”

DocuSign CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2026 (three months ending January 31, 2026), Docusign expects total revenue of $825M to $829M (7% YoY midpoint growth), subscription revenue of $808M to $812M (7% YoY midpoint growth), billings of $992M to $1,002M (8% YoY midpoint growth), non-GAAP gross margin of 80.8% to 81.2%, and non-GAAP operating margin of 28.3% to 28.7%. For full-year FY2026, the company expects total revenue of $3,208M to $3,212M (8% YoY midpoint growth), subscription revenue of $3,140M to $3,144M (8% YoY midpoint growth), billings of $3,379M to $3,389M (9% YoY midpoint growth), non-GAAP gross margin of 81.7% to 81.8%, and non-GAAP operating margin of 29.8% to 29.9%. FX impact is estimated at approximately 0.7 percentage points positive to Q4 revenue growth and approximately neutral to full-year revenue growth.

DOCU YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$300.0M$600.0M$900.0M$754.8M$818.4MRevenue$598.3M$647.8MGross Profit$59.0M$85.4MOperating Income$62.4M$83.7MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

DOCU Revenue by Segment

Subscription$801.0M+9.0%
Professional Services and Other$17.4M−14.0%
Professional Services

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