DocuSign (DOCU) exceeded Q3 revenue expectations, reporting $818.35M and adjusted EPS of $1.01. Free cash flow rose 25% to $262.9M, while non-GAAP gross margin decreased to 81.8%. The company also achieved FedRAMP and GovRAMP authorizations, enhancing its position for government contracts and AI integration. Professional services revenue dropped 14% to $17.4M, signaling a potential shift in focus.

DocuSign’s Q3 results showcased a revenue beat driven by subscription revenue growth of 9% to $801M. Operating cash flow increased by 24% to $290.3M, and free cash flow rose to $262.9M. The company returned $215.1M to shareholders through buybacks. CEO Allan Thygesen highlighted robust growth and profitability, emphasizing investment in the IAM platform.

Management attributed revenue growth and profitability to strong execution and operational efficiency improvements. DocuSign guided Q4 revenue between $825M to $829M, with subscription revenue expected between $808M to $812M. Billings are projected at $992M to $1.002B, indicating a solid outlook. The company serves 1.8M customers and over 1B users worldwide.

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Read more at Yahoo Finance: Docusign Shares Sell off Despite Despite Strong FY26 Q3 Earnings