Highlights

  • Second quarter revenue grew 9% to $875.7 million, and GAAP income from operations rose to $117.6 million from $65.2 million.
  • GAAP diluted earnings per share increased to $0.40 from $0.30, while the tax provision climbed to $47.3 million.
  • Docusign bought back 13.3 million shares for $624.0 million in six months and had no credit facility borrowings.
  • Fiscal 2027 revenue guidance rose to $3.499 billion to $3.507 billion, with recurring revenue growth guided at 8.5% to 9.0%.

Docusign, Inc. (NASDAQ:DOCU) shares were trading near their 52-week high at USD 80.77 on October 21, 2026, up 0.61%. The agreement software company reported fiscal 2027 second quarter results on September 3, raised its full-year revenue and annual recurring revenue outlook, and filed its quarterly report on September 4.

Based in San Francisco, California, Docusign is a Delaware corporation whose offerings include its AI-native Intelligent Agreement Management (IAM) platform, e-signature and contract lifecycle management. It operates as one reportable segment, and subscriptions made up 98% of revenue. As of July 31, 2026, it counted more than 1.9 million customers and more than a billion users, and said it offers more than 1,100 active partner integrations. Its fiscal year ends January 31, and management said on the call that it had 7,137 employees at quarter end.

Revenue Up 9% and Operating Income Nearly Doubles

Revenue for the three months ended July 31, 2026 was $875.7 million, compared with $800.6 million a year earlier. The company credited growth in commercial and enterprise accounts and its digital channel. International revenue was 31% of the total, up from 29%. Customers with annualized contract value above $300,000 numbered 1,296, against 1,137, and remaining performance obligations on contracts longer than one year were $2.3 billion, with 58% expected to be recognized within twelve months.

Gross margin was 80%, compared with 79%. Operating expenses rose 2% to $580.3 million, as sales and marketing grew 3% and general and administrative expense 8%, while research and development fell 4%. Income from operations was $117.6 million, a 13% margin, up from $65.2 million, or 8%. Stock-based compensation expense was $148.6 million, down from $160.5 million.

Net income rose to $77.7 million from $63.0 million, and GAAP diluted EPS was $0.40 against $0.30. Pretax income was $125.0 million, but the tax provision rose to $47.3 million from $13.5 million, which the company tied to higher profit and stock-compensation shortfalls versus windfalls a year earlier. Interest income and other income, net fell to $7.9 million from $12.1 million. On the call, management reported non-GAAP operating margin of 31.6%, non-GAAP diluted EPS of $1.16 and IAM at 15.1% of annual recurring revenue.

Cash, Buybacks and the Balance Sheet

Operating cash flow for the quarter was $334.5 million, and $656.2 million for six months, against $497.5 million. Capital expenditures for the six months were $71.0 million. Cash and cash equivalents plus short-term investments were $777.7 million, with another $195.4 million in long-term investments. No borrowings were outstanding on the $750.0 million revolving credit facility, which matures in May 2030.

During the six months, Docusign repurchased 13.3 million shares for $624.0 million. A March 2026 increase of up to $2.0 billion lifted the total authorization to $4.5 billion, leaving up to $2.1 billion available at July 31. Shares outstanding were 188.2 million, down from 197.8 million at January 31. In August the company signed a replacement office lease with about $20.0 million of minimum base rent, net of expected tenant incentives, running to fiscal 2037.

Raised Fiscal 2027 Guidance

For fiscal 2027, management now expects revenue of $3.499 billion to $3.507 billion, about 9% growth including roughly one point from currency, and annual recurring revenue growth of 8.5% to 9.0%, compared with 8.0% in fiscal 2026. It expects non-GAAP gross margin of 81.5% to 82.0%, non-GAAP operating margin of 31.0% to 31.5%, and 190 million to 195 million non-GAAP diluted shares. IAM is expected to represent 18% to 19% of annual recurring revenue exiting the fourth quarter.

For the third quarter, revenue is expected at $886 million to $890 million, with non-GAAP operating margin of 31.3% to 31.7%. Management expects gross margin to decline slightly this year as it continues migrating customer data to the cloud, and noted about $4 million of currency headwinds in the second half. These are company estimates.