DocuSign Inc. reported fiscal third‑quarter 2026 results that surpassed analyst expectations, with total revenue of $818.4 million, up 8% year‑over‑year from $754.8 million in Q3 FY2025. Adjusted earnings per share rose to $1.01, beating the consensus estimate of $0.91 by $0.10, a 10.9% beat. The revenue increase was driven by a 9% rise in subscription revenue to $801 million and a 10% jump in billings to $829.5 million, reflecting strong demand for the company’s cloud‑based agreement platform.
The Intelligent Agreement Management (IAM) platform, which now serves more than 25,000 customers, was a key growth engine. Subscription revenue growth was largely powered by higher mix of high‑margin AI‑enabled contracts and increased adoption of the IAM platform’s AI integrations with ChatGPT, Anthropic Claude, and Gemini Enterprise. International revenue grew 14% year‑over‑year to roughly 30% of total revenue, underscoring the platform’s global reach.
Margin performance remained solid, with a non‑GAAP operating margin of 31.4% and a GAAP gross margin of 79.2%, a slight contraction from 79.3% in the same period last year. The margin stability was achieved through disciplined cost management and operational leverage, offsetting modest increases in support and professional services costs associated with scaling the IAM platform.
Management issued new guidance for the fourth quarter and the full fiscal year. The company now expects Q4 revenue of $825 million to $829 million, a 7% year‑over‑year increase, and raised its full‑year revenue outlook to $3.208 billion to $3.212 billion, an 8% rise from the prior year. The guidance is described as conservative, reflecting cautious optimism about demand momentum and potential headwinds from competitive pressure in the AI‑native CLM space.
Market reaction was mixed, with investors focusing on the conservative forward guidance rather than the earnings beat. The slight miss on revenue estimates in some reports and the cautious outlook tempered enthusiasm, leading to a subdued response in the market. Analysts noted that while the company’s operational execution remains strong, the guidance signals a measured view of near‑term growth.
CEO Allan Thygesen highlighted the quarter as “one of the most robust top‑line growth and profitability quarters over the past two years,” citing customer investment in the IAM platform and improved operational efficiency. CFO Blake Grayson emphasized “consistent overall growth in IAM demand momentum” and noted the company’s largest quarterly share buyback in history, underscoring confidence in cash flow generation.
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