| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 42 | 41.9x | 17.6x | Around median | |
Growth | 69 | 8.6% | 7.1% | Top tier | |
Quality | 96 | 14.5% | 4.5% | Top tier | |
Safety | 83 | — | 2.6x | Top tier | |
Capital Return | 73 | — | 2.15% | Top tier | |
Momentum | 65 | -25.0% | 2.3% | Around median | |
Sentiment | 45 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
DocuSign provides a digital agreement lifecycle management platform, starting with its eSignature product and then expanding customer relationships through its Intelligent Agreement Management platform, known as IAM. The company generates revenue from subscriptions by direct and digital-channel customers, along with professional services and usage-based digital add-ons; in Q2 FY2027, it had more than 1.9 million customers, including approximately 290 thousand direct customers, while international markets accounted for 31% of revenue.
In Q2 FY2027, revenue reached $875.7 million, up 9% year over year, including a 1.3 percentage-point benefit from foreign exchange rates. Gross profit according to EDGAR was approximately $697.9 million, equivalent to a margin of about 79.7%, while net income reached $77.7 million and GAAP diluted earnings per share reached $0.40. On a non-GAAP basis, gross margin was 81.7%, operating income was $277 million, operating margin was 31.6%, up 180 basis points year over year, and diluted earnings per share were $1.16.
IAM has become an increasingly important source of growth, with its contribution to annual recurring revenue rising from 12.6% in Q1 to 15.1% in Q2 FY2027. At the same time, DocuSign generated $296 million in free cash flow at a 34% margin, and trailing-twelve-month free cash flow reached $1.2 billion, while the company ended the quarter with just under $1 billion in cash and investments and no debt on the balance sheet.
Analyst consensus is neutral, with an average price target of $68.75 and a relatively wide range of $58 to $75; the average target is approximately 21% below the 52-week range high of $86.65, while the range low is $40.16. The price-to-earnings multiple of 41.2 times and enterprise value-to-EBITDA multiple of 24.2 times, as reported in a September 4, 2026 analysis, indicate that the valuation assumes continued IAM expansion and earnings improvement, while the neutral consensus reflects limited confidence in an acceleration beyond the expected 9% revenue growth.
Figures in the text are as of 2026-09-05; the live price is shown at the top of the page.
The primary driver is the expansion of the IAM platform, whose contribution to annual recurring revenue rose from 12.6% in Q1 to 15.1% in Q2 FY2027. Management raised its annual recurring revenue growth forecast to 8.5%–9.0% and expects IAM to account for between 18% and 19% of it upon exiting Q4 FY2027. This is supported by a 14% increase in the number of customers above $300 thousand in annual contract value to nearly 1,300 customers.
Revenue reached $875.7 million, up 9% year over year, while gross profit according to EDGAR was approximately $697.9 million and net income was $77.7 million. GAAP diluted earnings per share reached $0.40, while adjusted earnings were $1.16, up 26% year over year. Non-GAAP operating margin was approximately 31.6%, with free cash flow of $296 million and a 34% margin.
IAM enables agreement data analysis and processes such as contract review, redlining, and supplier renewals, and Agreement Manager had ingested more than 300 million documents through Q2 FY2027. In user testing, AI Assistant cut the time required to summarize, review, and finalize agreements such as nondisclosure agreements in half. DocuSign launched Agent Studio and prebuilt agents in August 2026, while cumulative active accounts on MCP increased by more than fourfold during the quarter.
Automated analysis for informational purposes only — not investment advice.
The company expects revenue between $3.499 billion and $3.507 billion in FY2027, representing 9% year-over-year growth at the midpoint and including approximately one percentage point of foreign exchange support. It expects a non-GAAP gross margin between 81.5% and 82.0% and an operating margin between 31.0% and 31.5%. For Q3 FY2027, it expects revenue between $886 million and $890 million and an operating margin between 31.3% and 31.7%.
DocuSign ended Q2 FY2027 with just under $1 billion in cash and investments and no debt on the balance sheet. Trailing-twelve-month free cash flow reached $1.2 billion, nearly three times what it generated in the full FY2023. The company repurchased $307 million of shares during the quarter, reducing diluted share count by 8% year over year to 193 million shares, with $2.1 billion remaining under the authorization.
Foreign exchange rates added 1.3 percentage points to Q2 FY2027 revenue growth, making underlying growth slower than the reported 9%. Management also expects a slight decline in gross margin during FY2027 because of the cloud infrastructure migration, and MCP connectors remain at an early stage as a customer-acquisition and revenue channel. In addition, a September 4, 2026 analysis reported a valuation of 41.2 times earnings, compared with a neutral analyst consensus and an average price target of $68.75.
