Docusign tops Wall Street expectations with strong earnings results

Shares of Docusign Inc. rose more than 7% in late trading today after the company impressed investors with revenue and earnings beats in its fiscal 2026 second quarter.

For the quarter that ended on July 31, the electronic-signature company reported adjusted earnings per share of 92 cents, down from 97 cents per share in the same quarter of the previous year, on revenue of $800.6 million, up 9% year-over-year. Analysts were expecting 84 cents per share on revenue of $780.24 million.

Docusign saw subscription revenue in the quarter of $784.4 million, up 9% year-over-year, and professional services and other revenue of $16.2 million, down 13% year-over-year. Billings in the quarter rose 13%, to $818 million, and Docusign ended the quarter with $1.1 billion in cash, cash equivalents and investments on hand.

Business highlights in the quarter included the release of new capabilities to its Intelligent Agreement Management platform, including artificial intelligence-powered tools designed to streamline every stage of the agreement lifecycle, from creation through management. Among the new tools was Agreement Preparation, which automatically detects the type of agreement being drafted, builds a template and suggests the necessary fields.

For document management, the company added Custom Extractions in Docusign Navigator, a feature that helps customers capture organization-specific information from agreements at scale and reduces the need for manual review of large contract sets. The company says the guided process not only improves efficiency but also mitigates risk and provides deeper insights into contract data.

Additional updates included a new System for Cross-domain Identity Management integration that allows enterprises to provision and manage users through partners such as Okta Inc. and Microsoft Entra. Docusign also launched Maestro Workflow Templates, templates that allow customers to quickly customize and deploy pre-built workflows without coding.

“Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM and IAM businesses,” Chief Executive Allan Thygesen said in the company’s earnings release. “Q2 business results outperformed, leading to one of Docusign’s highest growth and profitability quarters in recent years.”

For its fiscal third quarter, Docusign expects revenue of $804 million to $808 million and for the full year, revenue of $3.189 billion to $3.201 billion. Analysts had been expecting a full-year revenue outlook of $3.16 billion.

Image: Docusign