DocuSign Q2 revenue slightly beats estimates on AI platform demand, raises FY27 revenue outlook
DOCU•Analyst coverage and valuation
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell".
The average consensus recommendation for the software peer group is "buy." Wall Street's median 12-month price target for Docusign, Inc. is $55.00, about 15.9% below its September 2 closing price of $65.39.
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago.
FY27 outlook raised on AI-driven momentum
The company raised full-year revenue, ARR, and IAM guidance, citing AI-driven momentum.
DocuSign raises FY27 revenue guidance to $3.499 bln-$3.507 bln. The company sees Q3 revenue between $886 mln and $890 mln. DocuSign expects IAM to represent 18%-19% of total ARR exiting Q4 FY27.
Q2 revenue and EPS slightly beat estimates
DocuSign said fiscal second-quarter revenue rose 9% and slightly beat analyst expectations, while adjusted earnings per share also beat consensus.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $875.70 mln | $867.43 mln (15 Analysts) |
| Q2 Adjusted EPS | Beat | $1.16 | $1.09 (17 Analysts) |
| Q2 EPS | $0.40 | ||
| Q2 Gross Margin | 79.70% | ||
| Q2 Adjusted Gross Margin | 81.70% | ||
| Q2 Free Cash Flow | $295.80 mln |
