DocuSign 2026 Q2 Earnings Record High Net Income Amid Revenue Growth

DocuSign (DOCU) reported its fiscal 2026 Q2 earnings on September 5, 2025. The company delivered revenue growth and set a new nine-year record for net income, although earnings per share saw a sharp decline year-over-year. The results reflect ongoing strategic execution and operational efficiency improvements highlighted by management.

Revenue
DocuSign's total revenue for Q2 2026 increased by 8.8% year-over-year to $800.64 million. The company’s subscription revenue, its primary income stream, accounted for the vast majority of total revenue at $784.39 million. Professional services and other revenue added $16.25 million, rounding out the total revenue figure. This growth underscores continued demand for digital transaction management and the AI-native Intelligent Agreement Management (IAM) platform.

Earnings/Net Income
Despite a 92.9% decline in EPS to $0.31 in Q2 2026 from $4.34 in the prior-year quarter, DocuSign achieved a record net income of $62.97 million, representing the highest Q2 net income in nine years. The drop in earnings per share was a significant negative, highlighting the need for further margin optimization.

Price Action
DocuSign’s stock price has experienced mixed short-term performance. Over the latest trading day, the stock edged down 2.61%. However, it gained 5.76% during the most recent full trading week and climbed 8.15% month-to-date.

Post-Earnings Price Action Review
Allan Thygesen, President, CEO & Director, described Q2 as an “outstanding quarter,” with revenue reaching $801 million, up 9% year-over-year, and billings hitting $818 million, up 13% year-over-year. Thygesen credited strong performance in eSignature, CLM, and the AI-native DocuSign Intelligent Agreement Management (IAM) platform, noting IAM’s increasing contribution. He emphasized strategic pillars—go-to-market optimization, product innovation, and operational efficiency—as key drivers of the results. Thygesen expressed confidence in the long-term opportunity, stating, “we are doing it more efficiently, at nearly the highest levels of profitability and capital returned to shareholders in our history.”

Guidance
For Q3 2026, DocuSign expects total revenue to range between $804 million and $808 million, representing approximately 7% year-over-year growth at the midpoint. The company anticipates full-year 2026 revenue between $3.189 billion and $3.201 billion, or a 7% year-over-year increase at the midpoint. Subscription revenue is projected to be $786 million to $790 million in Q3 and $3.121 billion to $3.133 billion for the year. Billings guidance ranges from $785 million to $795 million in Q3 and $3.325 billion to $3.355 billion annually, with 7% year-over-year growth at the midpoint. Non-GAAP operating margin is projected at 28.0% to 29.0% for Q3 and 28.6% to 29.6% for the year.

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