Docusign Reports 9% Year-Over-Year Revenue Growth in Q2 Fiscal 2027

Docusign, Inc., the leading provider of digital agreement management solutions, announced its second quarter fiscal 2027 financial results on September 3, 2026. The company reported a 9% year-over-year increase in revenue to $875.7 million, with a benefit of approximately 1.3% from foreign exchange rate fluctuations. Docusign also raised its fiscal year 2027 revenue, annual recurring revenue (ARR), and Intelligent Agreement Management (IAM) as a percentage of total ARR guidance.

Allan Thygesen, CEO of Docusign, highlighted the impact of artificial intelligence (AI) on the company’s momentum: "AI is driving significant growth, and we're delivering on our promise to make IAM the agreement system of action."

Key financial highlights for the quarter included: - GAAP gross margin of 79.7% and non-GAAP gross margin of 81.7%, both slightly down from the previous year. - GAAP net income per basic share of $0.41 on 191 million shares outstanding, compared to $0.31 on 203 million shares in the same period last year. - Non-GAAP net income per diluted share of $1.16 on 193 million shares, a significant improvement from $0.92 on 211 million shares in the same period last year. - Net cash provided by operating activities of $334.5 million, up from $246.1 million in the prior year. - Free cash flow of $295.8 million, representing a 34% margin, compared to $217.6 million, or a 27% margin, in the same period last year. - Cash, cash equivalents, and investments of $973.1 million at the end of the quarter. - Stock repurchases totaling $306.5 million, a significant increase from $201.5 million in the prior year.

The company has also expanded its AI capabilities, launching new tools and integrations: - AI Assistant: Analyzes agreement terms, reviews and redlines contracts, generates contract language, and triggers workflows. - Pre-built Agents: For common use cases such as agreement intake and vendor renewal. - Agent Studio: Allows customers to build, govern, and deploy custom agents for specialized use cases. - Workflow Builder Integration: Brings AI-based decision making and routing to traditional workflows. - Docusign Model Context Protocol (MCP) Server: Securely integrates Docusign agreement intelligence with existing AI tools.

Docusign also integrated IAM capabilities into Docusign CLM, creating an AI-powered repository that transforms static files into searchable business insights. This integration enables users to identify risks sooner and uncover cost-saving opportunities.

For the third quarter, Docusign expects: - Revenue guidance of $890 million to $910 million, compared to the previous guidance of $850 million to $870 million. - Non-GAAP gross margin of 81.2% to 81.6%. - Non-GAAP operating margin of 28.5% to 29.5%. - Non-GAAP net income per diluted share of $1.16 to $1.20.

Docusign continues to position itself at the forefront of digital transformation, leveraging AI to enhance its agreement management solutions. The company’s commitment to innovation and expansion demonstrates its ongoing efforts to simplify and accelerate business processes globally.