DocuSign Earnings: A Sluggish Outlook

Here's our initial take on DocuSign's (NASDAQ: DOCU) fiscal 2026 fourth-quarter financial report.

Key Metrics

A Rough Outlook for DocuSign

DocuSign has been attempting to diversify beyond its core e-signature product since the heyday during the worst of the coronavirus pandemic. The latest iteration of that effort is the Intelligent Agreement Management platform, which uses artificial intelligence (AI) technology across the full life cycle of agreements. CEO Allan Thygesen noted in the fourth-quarter report that IAM is enjoying "rapid traction" with customers, but a weak outlook for fiscal 2026 throws some cold water on that enthusiasm.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

For the fourth quarter of fiscal 2025, DocuSign beat analyst estimates across the board. The company grew revenue by 9% year over year and drove adjusted earnings per share 13% higher. DocuSign kept its headcount approximately flat over the past year, which helped keep operating expenses flat as well.

The trouble begins when you look at DocuSign's outlook for fiscal 2026. DocuSign expects to generate revenue between $3.129 billion and $3.141 billion, which represents just 5% growth at the midpoint. The IAM platform has potential, but it may take multiple years before it starts to move the needle.

Immediate Market Reaction

Despite the weak outlook for fiscal 2026, shares of DocuSign were up about 3% in early after-hours trading soon after the fourth-quarter report was released. Shares of DocuSign had shed about 30% of their value since late 2024 going into the report, and the stock remains down 75% from its pandemic-era high.

What to Watch

DocuSign needs to show investors that its IAM platform can boost growth and free the company from being entirely dependent on the commoditized e-signature market. A sluggish outlook for fiscal 2026 doesn't accomplish that, although the market appears to be looking the other way for now.

DocuSign will also have to contend with an uncertain economy that could drive down demand for its products. The weak outlook may largely be a reflection of this uncertainty. It's going to be a tough year for DocuSign, although things may start to look better in fiscal 2027 if the IAM platform picks up steam.

Helpful Resources

• Full earnings report
• Investor relations page

Should you invest $1,000 in Docusign right now?

Before you buy stock in Docusign, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Docusign wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $708,400!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 10, 2025

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign. The Motley Fool has a disclosure policy.