Docusign (DOCU)

NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-10-23

$85.27+1.02%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Docusign’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

-0.0%

+10% or more+5%0%−5%−10% or less

5.21 → 5.21 EPS · FY ending Jan 31, 2028 · 12 analysts

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

Change in the same fiscal period’s mean EPS estimate from Sep 24, 2026 to Oct 24, 2026: (new ÷ prior − 1). Contributor count changed from 12 to 12; this is not the number of analysts revising. Source: FMP consensus snapshots. The ±10% axis is a display range.

Measure / period	Management expectations	Analyst expectations
Quarter ending 2026-10-31
Revenue	—	889.02M
EPS	—	1.179
Annual ending 2027-01-31
Revenue	—	3.5B
EPS	—	4.622
Annual ending 2028-01-31
Revenue	—	3.78B
EPS	—	5.214

Management figures unavailable.

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Free cash flow improves to about $290 million quarterly	Free cash flow improves to nearly $290 million.	Improving	Free cash flow falls below $228 million quarterly	Free cash flow: $295.757M FY2027-Q2; GAAP. Published target: >= $289 million. Target period is not explicitly aligned with this observation. Source published Sep 4, 2026295,757,000 USD · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2027-Q2 · Period ending Jul 31, 2026 Source: stock_quarterly_financials_fmp. Reference: 2027-Q2. Source status: unverified. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Free cash flow increased from $217.6 million in 2025-Q3 to $295.8 million in 2026-Q3, with net cash from operations at $334.5 million in 2026-Q3. The improving cash flow metrics indicate delivering progress on enhancing cash generation. Delivery assessment Oct 24, 2026
Operating margin near 30% in fiscal 2026	Profit margins stay strong near 30%.	Broken	Operating margin falls below 25%	Operating margin: 13.43% FY2027-Q2; GAAP. Published target: ~29.85%. Target period is not explicitly aligned with this observation. Source published Sep 4, 202613.430949 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2027-Q2 · Period ending Jul 31, 2026 Source: company_financial_results. Reference: aab8dfab-2b81-4633-9167-7a2e80678648. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Revenue grows to about $3.5 billion in fiscal 2027	DocuSign grows revenue about 9% yearly, reaching $3.5 billion next year.	Intact	Revenue falls below $3.2 billion in FY27	Revenue: $875.746M FY2027-Q2; GAAP. Published target: >= $3.49 billion. Target period is not explicitly aligned with this observation. Source published Sep 4, 2026875,746,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2027-Q2 · Period ending Jul 31, 2026 Source: company_financial_results. Reference: aab8dfab-2b81-4633-9167-7a2e80678648. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2028 · fiscal year ending 2028-01-31 · fmp

FY2028 EPS$5.21

$5.09 → $5.21 · observed estimates

FY2028 revenue$3.78B

$3.76B → $3.78B · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2028 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	$5.09	$3,761,557,316	13 / 16
2026-07-25	$5.09	$3,761,557,316	13 / 16
2026-07-26	$5.09	$3,761,557,316	13 / 16
2026-07-27	$5.09	$3,761,557,316	13 / 16
2026-07-28	$5.09	$3,761,557,316	13 / 16
2026-07-29	$5.09	$3,761,556,482	13 / 16
2026-07-30	$5.09	$3,761,556,482	13 / 16
2026-07-31	$5.09	$3,761,556,482	13 / 16
2026-08-01	$5.09	$3,761,556,482	13 / 16
2026-08-02	$5.09	$3,761,556,482	13 / 16
2026-08-03	$5.09	$3,761,556,482	13 / 16
2026-08-04	$5.09	$3,761,556,482	13 / 16
2026-08-05	$5.09	$3,761,556,482	13 / 16
2026-08-06	$5.09	$3,761,556,482	13 / 16
2026-08-07	$5.09	$3,761,556,482	13 / 16
2026-08-08	$5.09	$3,761,556,482	13 / 16
2026-08-09	$5.09	$3,761,556,482	13 / 16
2026-08-10	$5.09	$3,761,556,482	13 / 16
2026-08-11	$5.09	$3,761,556,482	13 / 16
2026-08-12	$5.09	$3,761,556,482	13 / 16
2026-08-13	$5.09	$3,761,556,482	13 / 16
2026-08-14	$5.09	$3,761,556,482	13 / 16
2026-08-15	$5.09	$3,761,556,482	13 / 16
2026-08-16	$5.09	$3,761,556,482	13 / 16
2026-08-17	$5.09	$3,761,556,482	13 / 16
2026-08-18	$5.09	$3,761,556,482	13 / 16
2026-08-19	$5.09	$3,761,556,482	13 / 16
2026-08-20	$5.09	$3,761,552,088	13 / 16
2026-08-21	$5.09	$3,761,552,088	13 / 16
2026-08-22	$5.09	$3,761,552,088	13 / 16
2026-08-23	$5.09	$3,761,552,088	13 / 16
2026-08-24	$5.09	$3,761,552,088	13 / 16
2026-08-25	$5.09	$3,761,552,088	12 / 16
2026-08-26	$5.09	$3,761,552,088	12 / 16
2026-08-27	$5.09	$3,761,552,088	12 / 16
2026-08-28	$5.09	$3,761,552,088	12 / 16
2026-08-29	$5.09	$3,761,552,088	13 / 16
2026-08-30	$5.09	$3,761,552,088	13 / 16
2026-08-31	$5.09	$3,761,552,088	13 / 16
2026-09-01	$5.09	$3,760,681,602	13 / 16
2026-09-02	$5.09	$3,760,681,602	13 / 16
2026-09-03	$5.09	$3,760,681,602	12 / 15
2026-09-04	$5.11	$3,763,202,713	13 / 16
2026-09-05	$5.20	$3,771,208,079	13 / 16
2026-09-06	$5.20	$3,771,208,079	13 / 16
2026-09-07	$5.20	$3,771,208,079	13 / 16
2026-09-08	$5.20	$3,771,208,079	13 / 16
2026-09-09	$5.20	$3,771,208,079	13 / 16
2026-09-10	$5.21	$3,781,416,086	13 / 16
2026-09-11	$5.21	$3,781,416,086	13 / 16
2026-09-12	$5.21	$3,781,416,086	13 / 16
2026-09-13	$5.21	$3,781,416,086	13 / 16
2026-09-14	$5.21	$3,781,416,086	13 / 16
2026-09-15	$5.21	$3,783,228,797	13 / 16
2026-09-16	$5.21	$3,783,228,797	13 / 16
2026-09-17	$5.21	$3,783,228,797	13 / 16
2026-09-18	$5.21	$3,783,228,797	13 / 16
2026-09-19	$5.21	$3,783,228,797	13 / 16
2026-09-20	$5.21	$3,783,228,797	13 / 16
2026-09-21	$5.21	$3,783,228,797	13 / 16
2026-09-22	$5.21	$3,783,228,797	13 / 16
2026-09-23	$5.21	$3,783,228,797	13 / 16
2026-09-24	$5.21	$3,783,228,797	12 / 15
2026-09-25	$5.21	$3,783,228,797	12 / 15
2026-09-26	$5.21	$3,783,228,797	12 / 15
2026-09-27	$5.21	$3,783,228,797	12 / 15
2026-09-28	$5.21	$3,783,228,797	12 / 15
2026-09-29	$5.21	$3,783,228,797	12 / 15
2026-09-30	$5.21	$3,783,228,797	12 / 15
2026-10-01	$5.21	$3,783,228,797	12 / 15
2026-10-02	$5.21	$3,783,228,797	12 / 15
2026-10-03	$5.21	$3,783,228,797	12 / 15
2026-10-04	$5.21	$3,783,228,797	12 / 15
2026-10-05	$5.21	$3,783,228,797	12 / 15
2026-10-06	$5.21	$3,783,228,797	12 / 15
2026-10-07	$5.21	$3,783,228,797	12 / 15
2026-10-08	$5.21	$3,783,228,797	12 / 15
2026-10-09	$5.21	$3,783,228,797	12 / 15
2026-10-10	$5.21	$3,783,228,797	12 / 15
2026-10-11	$5.21	$3,783,228,797	12 / 15
2026-10-12	$5.21	$3,783,228,797	12 / 15
2026-10-13	$5.21	$3,783,228,797	12 / 15
2026-10-14	$5.21	$3,783,228,797	12 / 15
2026-10-15	$5.21	$3,783,228,797	12 / 15
2026-10-16	$5.21	$3,783,228,797	12 / 15
2026-10-17	$5.21	$3,783,228,797	12 / 15
2026-10-18	$5.21	$3,783,228,797	12 / 15
2026-10-19	$5.21	$3,783,228,797	12 / 15
2026-10-20	$5.21	$3,783,228,797	12 / 15
2026-10-21	$5.21	$3,783,228,797	12 / 15
2026-10-22	$5.21	$3,783,228,797	12 / 15
2026-10-23	$5.21	$3,783,228,797	12 / 15
2026-10-24	$5.21	$3,783,228,797	12 / 15

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold	Sell*
2026-05-01	6	16	1
2026-06-01	5	16	1
2026-07-01	5	16	1
2026-08-01	5	16	1
2026-09-01	4	16	1
2026-10-01	4	15	1

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 4 Buy / Strong Buy · 15 Hold · 1 Sell / Strong Sell

0 upgrades0 downgrades0 maintains

Recent actions · Sep 25–Oct 24 · 0 recorded

Price-target changes

30 days

Individual price-target observations are unavailable.

0 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Free cash flow improves to about $290 million quarterlyFree cash flow: $295.757M
Operating margin near 30% in fiscal 2026Published status: Broken
Revenue grows to about $3.5 billion in fiscal 2027Revenue: $875.746M

Next proof point

Dec 3, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

3 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

2.1%Typical daily move · historical

Downside history

-42.9%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Docusign outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

This is a growth and execution story, not a turnaround: revenue and free cash flow are growing, and management is expanding its Intelligent Agreement Management platform. The long-term thesis is intact, but the latest signal has shifted to mixed after a recent earnings miss.

What's priced into Docusign

The evidence labels valuation as expensive, despite also identifying DOCU as cheap versus peers, so the relative valuation picture is mixed. The expectations gap is slightly negative, but model confidence is low; the evidence does not show a strong fragility signal in what is priced in.

What the fundamentals likely do

Near term, revenue growth has tracked management’s 8–9% goal, free cash flow has improved, and the AI-powered platform’s share of annual recurring revenue has risen. These support the multi-year thesis, but the recent earnings miss and elevated risk leave room for execution setbacks; a guidance cut would be a meaningful negative.

What Docusign hinges on

The multi-year view depends on continued revenue growth, stronger cash generation, and further adoption of the AI-powered platform. Near term, guidance is a key swing factor, while lower interest rates and continued strength at major technology companies could support the sector backdrop.