From Nasdaq: 2025-06-06 13:24:00

DocuSign (NASDAQ: DOCU) exceeded expectations in Q1 FY26 with revenue of $763.7 million, up 8%, and adjusted earnings per share of $0.90, a 10% increase. Despite solid performance, billings are forecasted to decline, causing concern about future growth. Investors reacted negatively, with shares dropping 15% in after-hours trading.

DocuSign surpassed 10,000 Intelligent Agreement Management customers and maintained a healthy GAAP gross margin of 79.4%. While billings increased by 4%, the company revised its full-year fiscal 2026 guidance downwards, leading to investor apprehension about its growth prospects.

CEO Allan Thygesen is optimistic about DocuSign’s transformation and ambitious product roadmap. However, with revenue growth projected at just 5% for fiscal 2026, investors are seeking reassurance about sustained growth. Despite a new $1 billion buyback program, concerns remain about the company’s ability to expand and drive revenue significantly.

Investors are looking ahead, focusing on DocuSign’s future growth potential rather than its current financial performance. The stock’s 15% drop in after-hours trading indicates uncertainty about the company’s ability to deliver sustained growth and meet investor expectations for the future. CEO Thygesen’s turnaround ambitions will be closely monitored for results.



Read more at Nasdaq: DocuSign: Questions Around Growth Remain