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
QuarterlyIQ Insights · DOCU
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks DOCU against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to develop and integrate AI-powered IAM capabilities to drive agreement workflow automation and increase IAM's share of total ARR.
Stated as a priority in 3 of last 3 quarters. IAM's share of total ARR grew from 10.8% as of January 31, 2026, to 15.1% as of July 31, 2026, reflecting increased adoption and integration of AI-powered agreement workflows. Management's statements and ARR share growth indicate delivering progress on expanding the AI-native IAM platform.
“CEO: "Our AI agents are now securely executing contract workflows end-to-end, and the IAM platform also ingested a record volume of agreements."”
“CEO: "In Q1, we saw continued growing demand for Docusign's AI-native IAM platform with 40,000 customers investing in our rapidly expanding roadmap."”
“CEO: "Docusign's AI-native IAM platform has established clear market leadership as the agreement system of action for companies of all sizes."”
Sustain durable revenue growth targeting an 8-9% year-over-year increase supported by expanding customer base and product adoption.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $800.6 million in 2026-Q2 to $875.7 million in 2026-Q3, a 9% year-over-year increase. Fiscal 2027 revenue guidance targets $3.49 to $3.51 billion, also a 9% increase. The trajectory matches management's stated growth target, delivering consistent revenue growth.
Focus on improving free cash flow generation and operating cash flow to support business investments and capital returns.
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.
Accelerate share repurchases under the authorized program to return capital to shareholders and optimize capital structure.
Stated as a priority in 3 of last 3 quarters. Share repurchases increased from $201.5 million in 2025-Q3 to $306.5 million in 2026-Q3. The Board authorized an additional $2.0 billion to the repurchase program in 2026-Q1. Management is delivering increased utilization of the repurchase program.
Sustain durable revenue growth with guidance targeting 8-9% year-over-year increases in quarterly and annual revenue.
Over the trailing year it converted 5.75x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
7 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated stable grew net income 54% of the time over the next year (vs 60% for the rest of the cohort, n=2709).
Not investment advice. As of 2026-09-04.
“Revenue was $875.7 million, a 9% year-over-year increase including a benefit of approximately 1.3% from foreign exchange rates.”
“Revenue was $830.2 million, a 9% year-over-year increase including approximately 1.6% positive impact from foreign exchange rates.”
“Total revenue was $836.9 million, an 8% year-over-year increase including approximately 0.8% positive impact from foreign exchange rates.”
“Total revenue was $822 to $826 million, an 8% year-over-year increase expected for Q2 2026.”
“Free cash flow was $295.8 million, or a 34% margin, compared to $217.6 million, or a 27% margin, in the same period last year.”
“Free cash flow was $289.4 million compared to $227.8 million in the same period last year.”
“Net cash provided by operating activities was $321.7 million compared to $251.4 million in the same period last year.”
“Repurchases of common stock were $306.5 million, compared to $201.5 million in the same period last year.”
“Repurchases of common stock were $317.5 million compared to $183.4 million in the same period last year.”
“Board authorized an increase to its existing stock repurchase program of an additional amount of up to $2.0 billion.”