DocuSign Shares Surge on Strong Q2 Earnings and Raised Outlook
The e-signature giant beat analyst expectations for its second quarter and lifted its full-year revenue forecast, signaling strong business momentum.
Shares of DocuSign, Inc. (NASDAQ: DOCU) gained over 5% after the company posted second-quarter financial results that surpassed Wall Street estimates and raised its revenue guidance for the full year, citing momentum from its new AI-driven initiatives.
The electronic signature leader with total revenue reaching $800.6 million, a 9% increase compared to the same period last year. The company announced an adjusted earnings per share of $0.92, comfortably beating analyst expectations. Another key metric, billings, which indicates future revenue, grew by a robust 13% year-over-year to $818 million, suggesting a healthy pipeline.
Following the strong quarterly performance, DocuSign boosted its financial outlook. The company now projects its full-year 2026 revenue to land between $3.18 billion and $3.20 billion. The raised forecast reflects management's confidence in sustained growth, partly attributed to the adoption of its Intelligent Agreement Management (IAM) platform.
The market reacted positively to the beat-and-raise quarter, with the stock following the announcement. The move provided a boost to the stock, which has been volatile and was trading down more than 11% year-to-date before the earnings release.
Breaking down the revenue streams, subscription revenue climbed 9% to $784.4 million, while professional services saw a 13% increase to $16.2 million. For its upcoming third quarter, DocuSign anticipates total revenue to be in the range of $804 million to $808 million. The solid results and optimistic guidance indicate that the company's strategy to expand beyond e-signatures into a broader agreement management platform is gaining traction with customers.