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Docusign's Q4 Earnings and Revenues Surpass Estimates, Increase Y/Y
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Key Takeaways
DOCU reported Q4 fiscal 2026 earnings of $1.01 per share, beating estimates and rising 17.4% year over year.
DOCU posted revenues of $836.9M, up 7.8% y/y, driven by 8% growth in subscription revenues.
DOCU issued fiscal 2027 revenue guidance above estimates, with steady margin and ARR growth expectations.
Docusign, Inc. (DOCU - Free Report) reported impressive fourth-quarter fiscal 2026 results, with both earnings and revenues beating their respective Zacks Consensus Estimate.
DOCU’s adjusted earnings (excluding 57 cents from non-recurring items) were $1.01 per share, which surpassed the Zacks Consensus Estimate by 6 cents and increased 17.4% from the year-ago quarter’s level. Total revenues were $836.9 million, which beat the consensus estimate by $8.7 million and improved 7.8% on a year-over-year basis.
DOCU’s shares have lost 44.4% over the past year compared with a 5.1% decline of the industry. The Zacks S&P 500 composite has risen 21.3% in the said time frame.
Subscription revenues totaled $819 million, increasing 8% year over year. The figure beat our estimate of $809.6 million. Professional services and other revenues of $17.9 million fell 3% from the year-ago quarter’s level, surpassing our expectation of $16.5 million. Billings amounted to $1 billion, up 10% year over year. The figure topped our estimate of $998.1 million.
The non-GAAP gross margin was 81.8% compared with 82.3% a year ago, beating our estimate of 81.2%. The non-GAAP gross profit of $684.1 million grew 7.1% year over year and outpaced our expectation of $671 million. The non-GAAP operating margin was 29.5%, up 70 basis points from the year-ago quarter’s level. The figure beat our estimate of 28.4%.
Balance Sheet & Cash Flow of Docusign
Docusign exited the fourth quarter of fiscal 2026 with cash and cash equivalents of $602.4 million compared with $648.6 million at the end of fiscal 2025. Net cash generated by operating activities was $377.2 million for the reported quarter. Free cash flow generation was $350.2 million.
DOCU’s Q1 & FY27 Guidance
For the first quarter of fiscal 2027, DOCU expects revenues to be between $822 million and $826 million, above the Zacks Consensus Estimate of $813.4 million.
The non-GAAP gross margin and the non-GAAP operating margin are expected to be in the range of 80.8-81.2% and 29-29.5%, respectively. Non-GAAP diluted weighted-average outstanding shares are expected to be in the range of 196-201 million.
For fiscal 2027, the company expects revenues to be between $3.484 billion and $3.496 billion. The Zacks Consensus Estimate is pegged at $3.42 billion.
DOCU anticipates the annual recurring revenue (ARR) growth rate to be between 8.25% and 8.75%. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81.5-82% and 30-30.5%, respectively. Non-GAAP diluted weighted-average outstanding shares are expected to be in the range of 190-195 million.
Trane Technologies (TT - Free Report) reported impressive fourth-quarter 2025 results.TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter’s level.
TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter’s figure.
Booz Allen Hamilton (BAH - Free Report) registered mixed results for third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter’s level.
BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and were down 10.2% from the year-ago quarter’s figure.
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Docusign's Q4 Earnings and Revenues Surpass Estimates, Increase Y/Y
Key Takeaways
Docusign, Inc. (DOCU - Free Report) reported impressive fourth-quarter fiscal 2026 results, with both earnings and revenues beating their respective Zacks Consensus Estimate.
DOCU’s adjusted earnings (excluding 57 cents from non-recurring items) were $1.01 per share, which surpassed the Zacks Consensus Estimate by 6 cents and increased 17.4% from the year-ago quarter’s level. Total revenues were $836.9 million, which beat the consensus estimate by $8.7 million and improved 7.8% on a year-over-year basis.
DOCU’s shares have lost 44.4% over the past year compared with a 5.1% decline of the industry. The Zacks S&P 500 composite has risen 21.3% in the said time frame.
Docusign Inc. Price, Consensus and EPS Surprise
Docusign Inc. price-consensus-eps-surprise-chart | Docusign Inc. Quote
DOCU’s Segmental Revenues
Subscription revenues totaled $819 million, increasing 8% year over year. The figure beat our estimate of $809.6 million. Professional services and other revenues of $17.9 million fell 3% from the year-ago quarter’s level, surpassing our expectation of $16.5 million. Billings amounted to $1 billion, up 10% year over year. The figure topped our estimate of $998.1 million.
The non-GAAP gross margin was 81.8% compared with 82.3% a year ago, beating our estimate of 81.2%. The non-GAAP gross profit of $684.1 million grew 7.1% year over year and outpaced our expectation of $671 million. The non-GAAP operating margin was 29.5%, up 70 basis points from the year-ago quarter’s level. The figure beat our estimate of 28.4%.
Balance Sheet & Cash Flow of Docusign
Docusign exited the fourth quarter of fiscal 2026 with cash and cash equivalents of $602.4 million compared with $648.6 million at the end of fiscal 2025. Net cash generated by operating activities was $377.2 million for the reported quarter. Free cash flow generation was $350.2 million.
DOCU’s Q1 & FY27 Guidance
For the first quarter of fiscal 2027, DOCU expects revenues to be between $822 million and $826 million, above the Zacks Consensus Estimate of $813.4 million.
The non-GAAP gross margin and the non-GAAP operating margin are expected to be in the range of 80.8-81.2% and 29-29.5%, respectively. Non-GAAP diluted weighted-average outstanding shares are expected to be in the range of 196-201 million.
For fiscal 2027, the company expects revenues to be between $3.484 billion and $3.496 billion. The Zacks Consensus Estimate is pegged at $3.42 billion.
DOCU anticipates the annual recurring revenue (ARR) growth rate to be between 8.25% and 8.75%. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81.5-82% and 30-30.5%, respectively. Non-GAAP diluted weighted-average outstanding shares are expected to be in the range of 190-195 million.
Docusign currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshot
Trane Technologies (TT - Free Report) reported impressive fourth-quarter 2025 results.TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter’s level.
TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter’s figure.
Booz Allen Hamilton (BAH - Free Report) registered mixed results for third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter’s level.
BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and were down 10.2% from the year-ago quarter’s figure.