DOCU’s fourth quarter total revenue was $836.9 million, an 8% year-over-year increase helped by strong performance in subscription revenue and professional services.
- Its billings during the quarter were $1.0 billion, a 10% year-over-year increase.
- DocuSign sees FY27 revenue $3.484 billion-$3.496 billion, compared to Wall Street estimates $3.42 billion.
- It expects FY27 annual recurring revenue year-over-year growth rate 8.25%-8.75% and adjusted gross margin 81.5%-82.0%.
DocuSign (DOCU) shares jumped in extended hours of trading on Tuesday after it reported fourth-quarter (Q4) revenue higher than Street expectations.
DOCU posted Q4 revenue of $836.9 million, an 8% year-over-year increase, while analysts on average expected revenue of $827.33 million, according to data from Stocktwits. The company said the revenue was bolstered by strong performance in subscription revenue and professional services.
Shares of DOCU were up 1.4%, at the time of writing.
Q4 Earnings Snapshot
The company said adjusted net income per diluted share was $1.01 on 205 million shares outstanding, compared to $0.86 on 215 million shares outstanding in the same period last year.
Its billings during the quarter were $1.0 billion, a 10% year-over-year increase.
“Docusign’s AI-native IAM platform has established clear market leadership as the agreement system of action for companies of all sizes,” said Allan Thygesen, CEO of Docusign. “In 2026, customers using IAM represented over $350 million in ARR, and Docusign reached record highs for operating margin and free cash flow.”
Outlook
DocuSign said it expects FY27 revenue of $3.484 billion to $3.496 billion, compared to Wall Street estimates of $3.42 billion. DocuSign also projected Q1 revenue for its FY27 of $822 million to $826 million, according to Wall Street consensus of $813.61 million, as per TheFly.
It expects FY27 annual recurring revenue year-over-year growth rate of 8.25%-8.75% and adjusted gross margin 81.5%-82.0%.
Stock Repurchase
Docusign said its board has authorized an increase to its existing stock repurchase program of an additional amount of up to $2.0 billion of Docusign’s outstanding common stock.
The company said as of March 17, 2026, its total remaining authorization under the stock repurchase program is up to $2.6 billion.
Retail Reaction
Retail sentiment around DOCU shares trended in the ‘extremely bullish’ territory amid ‘extremely high’ message volume.
Shares in the company have fallen 30.7% year to date.
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