What drove DOCU's EPS growth in 2025?

DocuSign's EPS grew from $0.25 in Q3 2025 to $0.39 in Q4 2025, primarily driven by: 1. **Revenue Outperformance**: Revenue exceeded expectations at $776.3 million, marking a 9% year-over-year increase. This growth in revenue contributes directly to the increase in EPS. 2. **Gross Margin Strength**: The company maintained a strong gross margin of 79.4%, indicating efficient cost management, which positively impacts net income and, consequently, EPS. 3. **Subscription and Billings Growth**: Subscription revenue increased by 9% to $757.8 million, and billings reached $923.2 million, marking 11% year-over-year growth. These increases reflect strong customer demand and retention, which support EPS growth. 4. **Stock Repurchase Impact**: DocuSign repurchased $161.7 million in common stock, demonstrating a commitment to returning value to shareholders. While not a direct driver of EPS, it can lead to a higher EPS by reducing the number of shares outstanding. 5. **Innovation and Market Leadership**: The introduction of the Intelligent Agreement Management platform has been transformative, contributing to the company's sustained growth. This innovation likely led to increased customer adoption and retention, supporting EPS growth. In summary, DocuSign's EPS growth in 2025 was driven by strong revenue outperformance, efficient cost management, and strategic initiatives like stock repurchases and innovation in product offerings.