Docusign Stock Rises After Better-Than-Expected Q2 Results, Raised Guidance

Docusign (NASDAQ: DOCU) shares climbed in after-hours trading Thursday after the e-signature and contract-management company posted second-quarter fiscal 2027 results that topped Wall Street expectations and raised its full-year outlook, fueled by accelerating adoption of its artificial intelligence tools.

The San Francisco-based company reported revenue of $875.7 million for the quarter ended July 31, up 9% year-over-year and ahead of the $867.2 million analysts had projected. Adjusted earnings came in at $1.16 per share, comfortably beating the $1.09 consensus estimate. On a GAAP basis, net income per diluted share rose to $0.40 from $0.30 a year earlier.

Shares, which closed the regular session at $65.97, jumped roughly 5.9% in after-hours trading as investors cheered the results and an upgraded outlook.

CEO Allan Thygesen credited the strength to the company’s Intelligent Agreement Management (IAM) platform, which now represents 15.1% of total annual recurring revenue, up from 12.6% just one quarter earlier. “Docusign is raising its outlook as AI accelerates momentum across the business,” Thygesen said, pointing to new AI agents now handling contract workflows end-to-end.

The company generated $334.5 million in operating cash flow and $295.8 million in free cash flow, a 34% margin, while continuing an aggressive buyback program, repurchasing $306.5 million of stock during the quarter.

Looking ahead, Docusign guided third-quarter revenue to $886-$890 million and lifted its fiscal 2027 revenue forecast to $3.499-$3.507 billion, modestly above prior guidance and slightly ahead of analyst expectations, as IAM adoption continues to expand.