DocuSign slumps on FY26 billings forecast cut

Shares of virtual document signing platform DocuSign DOCU.O slump almost 17% to $77

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

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

JP Morgan lowers stock PT to $77 from $81, says it expects co's shares to be in "penalty box" as investors assess 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 "buy" or higher, 17 "hold" and one "sell"; Median PT is $87.56

As of last close, DOCU was up 3.3% YTD