10-Q · June 5, 2026
DocuSign reported Q1 2026 revenue of $830.2 million, surpassing estimates by $5.5 million, while EPS of $1.09 exceeded the consensus estimate of $0.87. Revenue growth compared to Q1 2025 was a solid 9%, signaling strong…
Earnings analysis · 10-Q
DOCU earnings analysis
Filed September 4, 2026 · Our reading of the company's report
The latest report
DocuSign delivered strong second-quarter results, with revenue of $875.746 million, up 9% year over year, GAAP operating margin of 13.4% versus 8.1%, and diluted GAAP EPS of $0.40 versus $0.30. Free cash flow increased…
Read full summary
DocuSign delivered strong second-quarter results, with revenue of $875.746 million, up 9% year over year, GAAP operating margin of 13.4% versus 8.1%, and diluted GAAP EPS of $0.40 versus $0.30. Free cash flow increased to $295.757 million and IAM reached 15.1% of ARR, supporting the positive operating trend. Liquidity remained substantial at $990.4 million of cash, cash equivalents, restricted cash and investments, although the company deployed $624.026 million on share repurchases during the first six months and faces rising AI, cloud, tax, and cybersecurity-related risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.4
What stood out
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Revenue growth remained 9%
Second-quarter revenue was $875.746 million, up $75.110 million, or 9%, from $800.636 million in the prior-year quarter. Management attributed the increase primarily to commercial and enterprise accounts, the digital channel, and expanded customer use cases.
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Operating leverage accelerated
GAAP gross margin increased to 79.7% from 79.3% year over year, while GAAP operating margin expanded to 13.4% from 8.1%. Operating income rose to $117.621 million from $65.227 million.
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GAAP EPS improved year over year
Diluted GAAP EPS increased to $0.40 from $0.30, and net income increased to $77.715 million from $62.970 million. The quarter also exceeded the provided consensus EPS estimate of $0.96 with reported adjusted EPS of $1.16, although that adjusted measure is not a GAAP metric in the 10-Q financial statements.
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Free cash flow margin reached 34%
Free cash flow was $295.757 million, up from $217.648 million in the prior-year quarter, with free-cash-flow margin expanding to 34% from 27%. Operating cash flow was $334.546 million, while property and equipment purchases were $38.789 million.
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IAM and enterprise penetration increased
IAM represented 15.1% of total ARR as of July 31, 2026, versus 10.8% as of January 31, 2026. Customers with more than $300,000 of annualized contract value increased to 1,296 from 1,137 year over year.
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International growth outpaced total growth
International revenue increased 17% for the six months ended July 31, 2026, to $526.121 million from $450.471 million, and represented 31% of quarterly revenue versus 29% in the prior-year quarter.
What to watch
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Agentic AI execution and control risk
The filing newly emphasizes risks from agentic AI and autonomous agents, which may act with limited human intervention and create financial, data-security, contractual, or regulatory exposure. The company also capitalized $97.5 million of developed software in the six months, increasing the importance of successful AI and platform investment outcomes.
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New digital software tax exposure
The filing identifies California Senate Bill 122, enacted June 29, 2026, as extending sales and use tax to digital prewritten software beginning January 1, 2027. Additional indirect-tax obligations could increase customer costs and administrative burden; DocuSign also reported $47.261 million of quarterly income-tax provision, up from $13.490 million.
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Cloud commitment and infrastructure costs
Cloud and infrastructure commitments create fixed-cost exposure as IAM scales: the company has a remaining minimum commitment of $204.9 million to a public cloud provider through fiscal 2030, while cost of revenue increased 7% year over year to $177.872 million. Higher hosting and AI infrastructure costs could pressure margins if growth slows.
Management's outlook
The 10-Q does not provide new or revised quantitative revenue or EPS guidance. Numeric outlook was provided in the September 3, 2026 earnings release: Q3 FY2027 revenue guidance of $886 million-$890 million and FY2027 revenue guidance of $3.499 billion-$3.507 billion.
Earlier filings 4
10-K · March 18, 2026
DocuSign, Inc. reported a total revenue of $3.22 billion for the fiscal year ended January 31, 2026, an increase from $2.98 billion the previous year. The company achieved a net income of $309 million, a return to…
10-Q · December 5, 2025
DocuSign reported strong revenue and earnings for Q3 2026, with total revenue increasing by 8% YoY to $818.4 million, exceeding both analyst expectations and previous quarters. The gross margin remained stable at 79%,…
10-Q · September 5, 2025
DocuSign reported strong second-quarter results with a revenue of $800.6 million, surpassing estimates and reflecting a 9% year-over-year growth. Significant operations led to a gross margin of 79% and an impressive EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.