DocuSign Q1 Revenue and EPS Beat; FY27 Revenue Guided to $3.50B
DOCU•DocuSign delivered Q1 revenue of $830.2 million and adjusted EPS of $1.09, both topping estimates, but billings grew just 3% year-over-year. For fiscal 2027, it guided revenue to $3.49–3.50 billion (≈9% growth midpoint) and saw analysts raise targets while keeping cautious ratings.
1. Q1 Financial Results
DocuSign reported first-quarter revenue of $830.2 million, surpassing the $824 million consensus, and delivered adjusted EPS of $1.09 versus the $0.99 estimate. Shares fell 5% premarket and traded down over 11% for the week following the announcement.
2. Billing Growth Concerns
Calculated billings grew only 3% year-over-year, with analysts describing this pace as weak despite solid top-line and profit beats. Investors remain focused on whether Intelligent Agreement Management adoption can drive more robust growth.
3. Fiscal 2027 Guidance
Management guided full-year revenue to $3.49–3.50 billion, implying roughly 9% growth at the midpoint and 7.1%–7.5% growth excluding currency impacts. This outlook fell short of expectations for a return to double-digit expansion.
4. Analyst Ratings and Targets
Jefferies raised its price target to $50 from $45 while maintaining a Hold rating, citing steady performance but long-term growth aspirations. Citi lifted its target to $54 with a Neutral stance, and Wells Fargo trimmed its target to $55, keeping an Equal Weight rating.
