We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DocuSign Shares Rise 4.7% Post Q2 Earnings & Revenue Beat
Read MoreHide Full Article
Key Takeaways
DOCU's Q2 EPS of $0.92 topped estimates but slipped 5.2% year over year.
Revenues rose 8.8% to $800.6M, with subscription sales up 9.3%.
DOCU's FY26 revenue forecast raised to $3.189B-$3.201B, above consensus estimates.
DocuSign, Inc. (DOCU - Free Report) reported impressive second-quarter fiscal 2026 results, wherein earnings per share (EPS) and revenues surpassed the Zacks Consensus Estimate. In response to the better-than-expected results, the company’s stock has rallied 4.7% since the earnings release on Sept. 4.
Image Source: Zacks Investment Research
DOCU’s EPS (excluding 62 cents from non-recurring items) was 92 cents, which topped the Zacks Consensus Estimate by 9.5% but decreased 5.2% from the year-ago quarter. Total revenues of $800.6 million beat the consensus mark by 2.8% and rose 8.8% from the second quarter of fiscal 2025.
The company’s shares have rallied 42.5% in the past year compared with the industry’s 45.3% rise and the Zacks S&P 500’s 20.6% growth.
Image Source: Zacks Investment Research
DOCU’s Segmental Revenues
Subscription revenues totaled $784.4 million, increasing 9.3% year over year. The figure beat our estimate of $760.2 million. Professional services and other revenues of $16.25 million fell 12.9% from the year-ago quarter, beating our expectation of $17.5 million. Billings amounted to $818 million, up 13% from the year-ago quarter. The figure failed to meet our anticipation of $764.5 million.
The non-GAAP gross margin was 82%, missing our estimate of 83.1%. The non-GAAP gross profit of $656.9 million grew 8.6% year over year and outpaced our expectation of $630.7 million. The non-GAAP operating margin was 29.8%, increasing 240 basis points from the year-ago quarter. It beat our estimate of 27.3%.
Balance Sheet & Cash Flow of DocuSign
DocuSign exited the second quarter of fiscal 2026 with cash and cash equivalents of $600 million compared with $648.6 million at the end of the second quarter of fiscal 2025. Net cash generated by operating activities was $246.1 million for the reported quarter. Free cash flow generated was $217.6 million.
DOCU’s Q3 & FY26 Guidance
For the third quarter of fiscal 2026, the company expects revenues between $804 million and $808 million.
DOCU anticipates subscription revenues in the range of $786-$790 million and billing revenues between $785 million and $795 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.3-81.3% and 28-29%, respectively.
For fiscal 2026, the company expects revenues between $3.189 billion and $3.201 billion. The Zacks Consensus Estimate for the same is pegged at $3.16 billion.
DOCU anticipates subscription revenues between $3.12 billion and $3.13 billion and billings between $3.325 billion and $3.355 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 28.6-29.6%, respectively.
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
FI’s adjusted EPS of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion lagged the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.
IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DocuSign Shares Rise 4.7% Post Q2 Earnings & Revenue Beat
Key Takeaways
DocuSign, Inc. (DOCU - Free Report) reported impressive second-quarter fiscal 2026 results, wherein earnings per share (EPS) and revenues surpassed the Zacks Consensus Estimate. In response to the better-than-expected results, the company’s stock has rallied 4.7% since the earnings release on Sept. 4.
Image Source: Zacks Investment Research
DOCU’s EPS (excluding 62 cents from non-recurring items) was 92 cents, which topped the Zacks Consensus Estimate by 9.5% but decreased 5.2% from the year-ago quarter. Total revenues of $800.6 million beat the consensus mark by 2.8% and rose 8.8% from the second quarter of fiscal 2025.
The company’s shares have rallied 42.5% in the past year compared with the industry’s 45.3% rise and the Zacks S&P 500’s 20.6% growth.
Image Source: Zacks Investment Research
DOCU’s Segmental Revenues
Subscription revenues totaled $784.4 million, increasing 9.3% year over year. The figure beat our estimate of $760.2 million. Professional services and other revenues of $16.25 million fell 12.9% from the year-ago quarter, beating our expectation of $17.5 million. Billings amounted to $818 million, up 13% from the year-ago quarter. The figure failed to meet our anticipation of $764.5 million.
The non-GAAP gross margin was 82%, missing our estimate of 83.1%. The non-GAAP gross profit of $656.9 million grew 8.6% year over year and outpaced our expectation of $630.7 million. The non-GAAP operating margin was 29.8%, increasing 240 basis points from the year-ago quarter. It beat our estimate of 27.3%.
Balance Sheet & Cash Flow of DocuSign
DocuSign exited the second quarter of fiscal 2026 with cash and cash equivalents of $600 million compared with $648.6 million at the end of the second quarter of fiscal 2025. Net cash generated by operating activities was $246.1 million for the reported quarter. Free cash flow generated was $217.6 million.
DOCU’s Q3 & FY26 Guidance
For the third quarter of fiscal 2026, the company expects revenues between $804 million and $808 million.
DOCU anticipates subscription revenues in the range of $786-$790 million and billing revenues between $785 million and $795 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.3-81.3% and 28-29%, respectively.
For fiscal 2026, the company expects revenues between $3.189 billion and $3.201 billion. The Zacks Consensus Estimate for the same is pegged at $3.16 billion.
DOCU anticipates subscription revenues between $3.12 billion and $3.13 billion and billings between $3.325 billion and $3.355 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 28.6-29.6%, respectively.
Currently, DocuSign carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
FI’s adjusted EPS of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion lagged the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.
IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.