"DocuSign (NASDAQ: DOCU) reported third quarter fiscal 2026 results after the close on Dec. 4, 2025, beating Wall Street expectations on both the top and bottom lines. The stock traded around $71.53 as investors digested the report. Revenue came in at $818.35 million, topping the $807.42 million consensus estimate, while adjusted earnings per share of $1.01 beat expectations by 11%. This marks the company's eighth consecutive quarterly earnings beat, a pattern that's become consistent over the past two years."
"The revenue beat came primarily from subscription revenue, which climbed 9% year over year to $801 million. That's the engine driving DocuSign's business, and it performed exactly as investors hoped. The company's Intelligent Agreement Management (IAM) platform now serves more than 25,000 customers, up from previous quarters and showing solid adoption of the broader platform beyond e-signature. Cash generation improved dramatically."
DocuSign reported Q3 fiscal 2026 revenue of $818.35 million and adjusted EPS of $1.01, both above consensus. Subscription revenue rose 9% year over year to $801 million, fueled by adoption of the Intelligent Agreement Management (IAM) platform, which now serves more than 25,000 customers. Operating cash flow increased 24% to $290.3 million and free cash flow rose 25% to $262.9 million. The company returned $215.1 million to shareholders via buybacks. DocuSign secured FedRAMP and GovRAMP authorizations and integrated AI capabilities with ChatGPT, Microsoft Copilot, GitHub Copilot, Anthropic Claude, and Gemini. Professional services revenue fell 14% to $17.4 million, and non-GAAP gross margin compressed 70 basis points to 81.8%.
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