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Reasons Why You Should Retain Docusign Stock in Your Portfolio

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Key Takeaways

  • DOCU shares rose 6.1% in the past month, outperforming the broader market's 1.5% gain.
  • Docusign's IAM platform and new integrations are driving faster agreement processing and revenue growth.
  • Strong demand for eSignature and CLM solutions continues to support enterprise and global expansion.

Shares of Docusign (DOCU - Free Report) have gained 6.1% over the past month, outperforming the Zacks S&P 500 Composite’s 1.5% growth.  

DOCU has a Growth Score of A, which condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth. The company’s fourth-quarter 2025 earnings are expected to increase 10.5% year over year. Its 2025 and 2026 earnings are expected to rise 6.2% and 10.27%, respectively. Revenues are expected to grow 7.7% in 2025 and 6.5% in 2026.

Factors That Augur Well for DOCU

DOCU’s revenue growth is being driven by the enhanced capabilities of its Intelligent Agreement Management (“IAM”) platform. This cloud-based software helps organizations ingest a vast and complex body of agreements into a single repository and manage agreement processes efficiently with reduced risk.

The recently launched Agreement Desk, an internal centralized workspace, accelerates agreement processing by keeping teams aligned. Additionally, DOCU has announced the availability of IAM on ChatGPT, with connectivity to GitHub Copilot, Copilot Studio, Anthropic Claude, Gemini Enterprise and Agentforce, through a beta server, Model Context Protocol.

Rising customer demand and trust in the company’s offerings, especially eSignature, are further driving its growth. Recently, New York Life, the largest mutual life insurer in the United States, modernized key end-to-end workflows for its agents and millions of policyholders by integrating eSignature with Salesforce, enabling 65% of customer agreements to be completed within a few hours.

DOCU’s Contract Life Cycle Management, which features sophisticated workflows that allow customers to review and edit contracts more quickly, remains a top choice for enterprise customers' workflows. The integration of CLM into Docusign Navigator, a smart repository that centralizes agreements, unlocks the data in them and offers insights, enables organizations to store, manage and analyze agreements more effectively.

DOCU’s international revenues and overall growth reflect its continued focus on market expansion. IAM with Docusign Maestro, its automated agreement workflow builder, is consistently boosting revenues in North America, Latin America, EMEA and most countries in APAC through its customized AI-driven approach.

Docusign Inc. Revenue (TTM)

Docusign Inc. Revenue (TTM)

Docusign Inc. revenue-ttm | Docusign Inc. Quote

Key Risk Factor

DOCU had a current ratio of 0.73, lower than the industry's average of 1.94 in the last quarter. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.

Zacks Rank & Stocks to Consider

DOCU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks in the industry are CS Disco, Inc. (LAW - Free Report)  and Atlassian Corporation (TEAM - Free Report) .

CS Disco currently carries a Zacks Rank #2 (Buy). LAW has a long-term earnings growth expectation of 28.8%. The company delivered a trailing four-quarter earnings surprise of 47.5% on average.

Atlassian also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 20.5%. TEAM delivered a trailing four-quarter earnings surprise of 20.7% on average.


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