Docusign (DOCU)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$68.41+3.70%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
Warn: Primary pillar under pressure — Operating margin near 30% in fiscal 2026: 12.0% vs ~29.9% target.
DocuSign grows revenue about 9% yearly, reaching $3.5 billion next year. Profit margins stay strong near 30%. Free cash flow improves to nearly $290 million. The company keeps expanding with new products and buybacks.
Revenue growth could slow below 9%. Profit margins might shrink from current levels. Free cash flow gains may stall. Competition and market stress could pressure results.
The price is about 25% below our fair value near $62. Analysts expect about 9% revenue growth. Our view aligns with these growth expectations but sees risk from recent market selling.
Breaks if: Free cash flow falls below $228 million quarterly
Breaks if: Operating margin falls below 25%
Breaks if: Revenue falls below $3.2 billion in FY27
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and cash generation. The current thesis state is stable, supported by strong management execution and a commitment to expanding its AI-native platform.
The market currently prices DOCU as relatively cheap compared to its peers, with expectations indicating a slight gap. This suggests that while there is some optimism, the stock is not overly speculative at this time.
Management has demonstrated robust execution with strong revenue growth and improving free cash flow. However, there is a near-term risk of missing earnings expectations, as the company has missed in recent quarters.
The long-term outlook hinges on several factors, including the potential for the Fed to cut interest rates and the performance of sector leaders like SAP and CRM. Additionally, any guidance cuts from DOCU could negatively impact sentiment.
The most important moves since the prior daily snapshot.
Company momentum fell by 70.6 points (from 29.8 to -40.8) after fresh earnings.
Signal changed from 'mild_favorable' to 'mixed' after fresh earnings.
Composite insight fell by 13.4 points (from 19.1 to 5.7) after fresh earnings.
Yes, our read has strengthened. The latest earnings beat supports this view. The company raised its sales outlook due to strong revenue growth. Baird raised its estimate for DocuSign shares to $72 from $55. This reflects a higher valuation view based on positive trends in annual recurring revenue.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Overall, DOCU's fundamentals are strong, but investors should remain cautious due to recent earnings misses and external economic factors. Not investment advice.
as of 2026-09-04