DocuSign Q2 Earnings Exceed Expectations, Guides Upward

DocuSign reported Q2 revenue of $800.6 million, beating estimates by 8.8% YoY. Guidance for next quarter's revenue was raised to $806 million, a 1.1% increase above analyst estimates. The company attributed its success to the initial success with go-to-market changes, strong direct sales performance, and growth in gross new bookings. DocuSign's IAM platform gained traction, and the company aims for long-term double-digit growth.

DocuSign Inc. (NASDAQ: DOCU) reported its fiscal Q2 2026 results on September 4, 2025, with revenue of $801 million, up 9% year-over-year (YoY), and billings of $818 million, up 13% YoY. The company achieved a non-GAAP operating margin of 30%, demonstrating robust financial performance and strategic progress.

The quarter was marked by significant advancements in the company's AI-native Intelligent Agreement Management (IAM) platform, which is poised to reach a low double-digit percentage of the subscription book by year-end. The IAM platform has seen increasing adoption, with over 50% of enterprise account representatives closing at least one IAM deal, and notable Fortune 1000 clients such as Sensata Technologies and T-Mobile adopting advanced contract lifecycle management (CLM) and AI-driven analytics [1].

The company's strong financial performance was bolstered by a 13% YoY increase in billings, a 102% dollar net retention rate, and an increase in average deal size. International revenue represented 29% of total revenue, growing at 13% YoY. Allan C. Thygesen, CEO of DocuSign, commented, "Q2 business results outperformed our expectations... Revenue was $801 million, up 9% year-over-year, and billings were $818 million, up 13% year-over-year" [1].

DocuSign's strategic focus on IAM and its AI-powered features, such as DocuSign Navigator and agreement preparation, has created meaningful competitive differentiation and expanded the company's addressable opportunity. The company's gross margin held steady at 82%, despite a 100-basis-point year-over-year headwind from cloud migration costs and a temporary dip in operating margin due to compensation mix shifts [1].

Looking ahead, management projects revenue of $804 million to $808 million for Q3 FY2026 and full-year revenue of $3.189 billion to $3.201 billion for FY2026, with billings anticipated at $3.325 billion to $3.355 billion for FY2026. The company expects non-GAAP operating margins to range from 28% to 29% for Q3 and 28.6% to 29.6% for the full year [1].

References:
[1] https://www.aol.com/finance/docusign-q2-revenue-hits-801-222436923.html