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Reasons Why You Should Retain Docusign Stock in Your Portfolio

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Key Takeaways

  • DOCU is likely to post Q4 2026 earnings growth of 10.5%. Revenues are expected to rise in 2026 and 2027.
  • Growth is driven by DOCU's IAM platform, including Agreement Desk and new AI integrations across major tools.
  • International expansion, rising customer base and Microsoft and Salesforce ties support DOCU's growth.

Docusign (DOCU - Free Report) 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 fiscal 2026 earnings are expected to increase 10.5% year over year. Its fiscal 2026 and 2027 earnings are expected to rise 6.8% and 10.2%, respectively. Revenues are expected to grow 7.8% in fiscal 2026 and 6.6% in fiscal 2027.

Factors That Bode Well for DOCU

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

Docusign Inc. Revenue (TTM)

Docusign Inc. Revenue (TTM)

Docusign Inc. revenue-ttm | Docusign Inc. Quote

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 Model Context Protocol (a beta server).

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.

Rising customer demand and trust in the company’s offerings, especially eSignature, are further driving its growth. This enables DOCU to enjoy consistent addressable market share growth. Its customer base grew 1.3 million in fiscal 2023, 1.5 million in fiscal 2024 and 1.7 million in fiscal 2025.

DOCU’s strategy of expansion through deepening its relationships with tech giants such as Salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) also contributed to its overall growth. DOCU and Salesforce are jointly developing solutions to automate the contract creation process and expand collaboration among organizations that use Salesforce’s Slack. Recently, it integrated eSignature with Microsoft Teams and became an official electronic signature provider in Microsoft Teams’ Approvals app. This will enable DOCU to sell products to a far greater number of client accounts.

Key Risk Factor

DOCU had a current ratio of 0.73, lower than the industry's average of 1.95 in the third quarter of fiscal 2026. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.

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


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