Can DOCU sustain its EPS growth trend?

**DocuSign's ability to sustain its EPS growth trend appears promising**, considering the following points: 1. **Consistent Growth in Revenues**: DocuSign has demonstrated a consistent increase in revenue, which is a key indicator of its growing business and potential for sustained EPS growth. The company's total revenues rose by 9% year-over-year to $776.3 million in Q4 2025, surpassing the analyst estimate. |code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code| |---|---|---|---|---|---|---| |DOCU|DOCU.O|DocuSign|2025 Q1|0.03|0.16|185| |DOCU|DOCU.O|DocuSign|2025 Q2|0.16|4.26|185| |DOCU|DOCU.O|DocuSign|2025 Q3|0.03|0.3|185| |DOCU|DOCU.O|DocuSign|2025 Q4|0.02|0.39|185| 2. **Strong Profitability**: The company's gross margin maintained a strong rate of 79.4%, indicating efficient cost management and a solid profitability profile. This is a positive signal for EPS growth, as a higher gross margin typically translates to better net income and, consequently, higher EPS. 3. **Strategic Initiatives**: DocuSign has been actively pursuing strategic initiatives, such as the launch of its Identity Access Management (IAM) platform, which is expected to drive future expansion and contribute to growth. These initiatives have the potential to create new revenue streams and boost profitability, supporting EPS growth. 4. **Customer Base Expansion**: The company's customer base has grown significantly, from 1.3 million in fiscal 2023 to 1.7 million in fiscal 2025. This expansion in the customer base is a testament to the company's market penetration and its ability to generate revenue from each customer, which is beneficial for EPS growth. 5. **Financial Health Metrics**: DocuSign's financial health metrics, such as free cash flow, which increased to $279.6 million year-over-year, indicate improved cash generation capabilities. Strong cash flow is crucial for sustaining EPS growth, as it allows the company to invest in growth opportunities and return value to shareholders through stock repurchases, as evidenced by the $161.7 million repurchased in common stock during the quarter. In conclusion, while there are challenges in sustaining historical growth rates in the e-signature market, DocuSign's strong revenue growth, strategic initiatives, and efficient profitability metrics suggest that the company is well-positioned to sustain its EPS growth trend.