Start here if you're new
what it is
Docusign sells cloud software that lets businesses send, sign, and track agreements online.
how it gets paid
Last year Docusign made $3.0B in revenue. eSignature was the main engine at $1.55B, or 52% of sales.
why it's growing
Revenue grew 7.8% last year. Partnerships with cloud-service providers have generated organic demand growth for self-service offerings.
what just happened
DocuSign posted $1.04 per share on $2.4B of revenue.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
15.1x trailing p/e — the market's not buying it — or you found a deal
42.5% return on capital — every dollar works hard here
xvary composite: 50/100 — below average
What they do
Docusign sells cloud software that lets businesses send, sign, and track agreements online.
You do not rip out software used by 1.1 million customers and hundreds of millions of users. That is the lock-in: switching means moving workflows, signatures, and records, not just buttons. The contrast is ugly for rivals: $134M of long-term debt against $3.0B of revenue leaves room to keep spending.
How they make money
$3.0B
annual revenue · their business grew +7.8% last year
eSignature
$1.55B
+6.0%
Agreement Cloud
$0.70B
+9.0%
Intelligent Agreement Management
$0.35B
+23.5%
Contract Lifecycle Management
$0.25B
+11.0%
Other services
$0.15B
+2.0%
The products that matter
electronic signature workflow
eSignature
core to the $3.0B revenue base
this is still the center of gravity. the snapshot does not break out its exact revenue, which is the quiet part: the core product is large enough to matter, but you are not getting a clean split between old engine and new bets here.
core engine
agreement management platform
Intelligent Agreement Management
enterprise push · international reach
management is pushing IAM as the layer above signing. the hardest number on this page is 29% of revenue from international markets. that does not prove IAM scale, but it does show the story is broader than one domestic e-signature product.
next act
contract workflow tools
Contract Lifecycle Management
double-digit quarterly bookings growth
CLM matters more as a signal than a size driver today. the page gives you bookings growth, not revenue. in human-speak: customers are showing interest, but you still need harder proof that interest is turning into a business large enough to matter inside a $3.0B company.
emerging
Key numbers
$3.0B
annual revenue
This is the whole sales base. You are not buying a tiny niche.
$4.10
FY2026 EPS
That is the per-share profit estimate for the year. It says earnings are already real, not hypothetical.
15.1x
trailing P/E
You pay 15.1 years of trailing earnings for the stock. That is cheap-ish for software, but not a fire sale.
42.5%
return on capital
For every dollar invested in the business, Docusign is earning 42.5 cents back in operating profit. That is why the model still works.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $134M (1% of capital)
- net profit margin 24.1% — keeps 24 cents of every dollar in revenue
- return on equity 44% — $0.44 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in DOCU 3 years ago → it's now worth $9,720.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
DocuSign posted $1.04 per share on $2.4B of revenue.
Revenue was up 191% from a year ago, and gross margin held at 79.3%. That means the business still turns sales into software-heavy profit.
$755M
revenue
$1.04
eps
79.3%
gross margin
the number that mattered
The $2.4B quarter mattered because it paired 191% growth with a 79.3% gross margin.
-
docusign likely closed out fiscal 2025 with strong top-line results. (fiscal year ends january 31, 2026.) full-year revenues probably expanded around 8%, thanks to healthy customer growth and a rising net revenue retention of over 100%.partnerships with cloud-service providers have generated organic demand growth for self-service offerings. the broad-market push for modernized digital infrastructure has led to an uptick in larger deals from its biggest customers, by market cap.
-
however, costs associated with cloud migration have cut into earnings expansion.
-
the company has started to diversify its revenues.
-
docusign has doubled down on its ai-native intelligent agreement management (iam) platform.the offering has gained significant traction with enterprise customers adopting the expanded product suite. management has noted that this may compete with esignature offerings as the core business in the near future. the iam platform has acted as a catalyst for entering regional markets outside the u.s., which had historically been a challenge.
-
international receipts now account for 29% of total revenues, with the asia-pacific region leading the expansion.additionally, the contract lifecycle management business delivered double-digit quarterly bookings growth in the fiscal 2025 third quarter.
source: company earnings report, 2026
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What could go wrong
the core risk is simple: if eSignature slows before IAM and CLM show real scale, you are left owning a good software business the market refuses to re-rate.
med
core product maturity shows up in the top line
the current revenue base is still anchored by the signing product. if renewals soften or seat expansion stalls, 7.8% growth has less room to hide because total annual revenue is $3.0B, not $30B.
impact: slower growth would make 15.1x trailing earnings look less like a discount and more like the correct label for a mature tool business.
med
the new product story is still thin in disclosed dollars
IAM and CLM are the reason investors still talk about a bigger second act. this page does not disclose revenue for either one. that means you are being asked to trust momentum without the segment proof you would usually want.
impact: if the new layers stay small, docusign stays a profitable signing business growing 7.8%, which is useful but not usually premium-multiple material.
med
cloud migration costs can blur the earnings story
management is still absorbing costs tied to cloud migration. a 24.0% net margin gives the company room, but it also means you have one more moving part between revenue growth and cleaner profit expansion.
impact: if margin slips while growth stays single digit, the stock loses one of its clearest defenses.
med
the chart can overpower the business for long stretches
price stability is 10/100, even with a B+ balance sheet and just $134M in long-term debt. the business can execute reasonably well and still give you a rough ride if sentiment stays cold.
impact: if you own it, you need the operating story to improve enough to overpower a market that has already dragged the stock far closer to $49 than $99.
all $3.0B of current revenue still depends on the core agreement workflow staying sticky long enough for newer products to earn real scale. the 29% international share helps, but it does not settle the argument by itself.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next revenue growth print
7.8% growth is respectable. it is not enough by itself to make investors forget the mature-core narrative. your next checkpoint is whether growth stabilizes, slips, or starts to re-accelerate.
metric
international share of revenue
29% of revenue now comes from international markets. if that keeps rising, you are seeing a real second leg of expansion rather than a one-market story running out of room.
risk
margin pressure from migration and mix
24.0% net margin gives management room. if that starts moving the wrong way while growth stays around single digits, one of the cleanest supports for the stock disappears.
trend
proof IAM and CLM are turning into scale
double-digit CLM bookings growth is a start. what you still need is harder evidence that the broader agreement platform pitch is becoming revenue, not just a better story on a slide.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock that needs a fresh reason to move.
risk profile
below average
stability score 4 — the balance sheet is fine, but the stock still trades like a name investors do not fully trust.
chart momentum
average
technical score 3 — the chart is not giving you a dramatic signal. welcome to a wait-for-proof stock.
earnings predictability
30 / 100
30/100 predictability means future results are harder to model than the market would like. if you own it, expect narrative swings after earnings.
source: institutional data
Institutional activity
393 buyers vs. 367 sellers in 3q2025. total institutional holdings: 0.2B shares.
source: institutional data
Price targets
3-5 year target range
$45
$116
$57
current price
$81
target midpoint · +43% from current · 3-5yr high: $115 (+105% · 19% ann'l return)
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