DocuSign Earnings Preview: Analysts See Lower EPS, 6% Revenue Growth

DocuSign's stock (NASDAQ: DOCU) has given holders a volatile 2025 so far, twice moving from the mid $90 range down to $70, which although briefly broken, has provided something of a support floor. Down 15.76% on the year, DOCU is rebuilding a little momentum leading into today's earnings call, with a 13% rally from early August's low.

Expectations for earnings then are moderate, with the street expecting DocuSign to report an average earnings per share of $0.85, down from $0.97 in the same quarter last year. Revenue is projected to reach $780.59 million, representing year-over-year growth of 6.05%. This suggests modest top-line expansion, even as earnings face some pressure.

The past year has been a study in contrasts for DocuSign. Strong revenue growth and strategic forays into AI-powered agreement management have been punctuated by downward revisions in billings forecasts, creating significant volatility in the stock price. The company's journey highlights the delicate balance between innovation, financial discipline, and market sentiment in the competitive software-as-a-service (SaaS) landscape.

DocuSign's fiscal Q1 2026 results, released in June, showcased revenue of $764 million, an 8% year-over-year increase that surpassed analyst expectations. Adjusted EPS also exceeded estimates, coming in at 90 cents. However, a revised full-year billings forecast, lowered from $3.3 billion-$3.35 billion to $3.28 billion-$3.34 billion, triggered an 18% drop in the stock price.

This reaction underscores the market's sensitivity to forward-looking indicators, particularly in the realm of subscription-based businesses where billings serve as a crucial gauge of future revenue.

Prior to this, fiscal Q4 2025 saw DocuSign shares surge by nearly 15% after the company reported strong revenue, EPS, and billings figures. The introduction of DocuSign IAM, the company's AI-powered agreement management platform, further fueled market enthusiasm.

The third quarter of fiscal 2025 also witnessed a 22% stock price jump after the company raised its full-year revenue guidance. These positive reactions demonstrate the market's willingness to reward consistent performance and strategic innovation.

As DocuSign prepares to release its earnings report, markets will be closely scrutinizing several key factors:

Billings Performance: Whether the company can reverse the recent trend and deliver strong billings growth.

AI Adoption: The pace at which customers are adopting DocuSign IAM and other AI-powered solutions.

Competition: How DocuSign is responding to increasing competition in the e-signature market.

Guidance: The company's outlook for the remainder of the fiscal year.

Looking out from here, the expectations for FY26 and FY27 are for revenue to growth 6.21%, and then 6.53%. Whilst Docusign has beaten EPS estimates in each of the past four reports, the guidance may prove pivotal, with markets looking for signs that growth could expand faster than currently anticipated.