DocuSign slumps after lowering FY26 billings outlook

Shares of virtual document signing platform DocuSign DOCU.O slump almost 18% premarket to $76.32 after lowering FY26 billings outlook, Q1 billings miss

Co lowers FY 2026 billings forecast to between $3.29 bln and $3.34 bln from prior $3.30 bln to $3.35 bln

Co's Q1 billings of $739.6 mln also misses estimates

JP Morgan lowers PT to $77 from $81, says they expect co's shares to be in "penalty box" as investors look at whether billings miss is temporary

"... many investors expect (DocuSign) to be beating and raising while making progress toward recapturing double-digit growth over time, our sense is that these results this quarter will set back those aspects of the narrative" - brokerage

Five out of 23 analysts rate stock as "buy" or higher, 17 "hold" and one "sell"; Median PT is $87.56

As of last close, DOCU up 3.3% YTD