DocuSign (NASDAQ:DOCU) shares are trading higher Friday after the company reported better-than-expected second quarter financial results and raised its fiscal year 2026 sales guidance above estimates. Also, the company issued third quarter sales guidance above estimates.
What To Know: DocuSign reported adjusted earnings per share of 92 cents, beating the consensus estimate of 84 cents. In addition, the company reported sales of $800.64 million, beating the consensus estimate of $780.24 million and representing a 9% year-over-year growth.
The company attributed the revenue growth to subscription sales of $784.4 million.Billings climbed 13% to $818 million, while operating cash flow rose to $246.1 million from $220.2 million a year earlier.
Q3 Outlook: The company sees sales of $804.00 million to $808.00 million, versus the consensus estimate of $796.55 million.
FY26 Outlook: DocuSign raised its sales guidance from between $3.15 billion and $3.16 billion to between $3.19 billion and $3.20 billion, versus the consensus estimate of $3.16 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- UBS analyst Karl Keirstead maintained a Neutral rating on DocuSign and raised the price target from $80 to $85.
- Wells Fargo analyst Michael Turrin maintained an Equal-Weight rating on DocuSign and raised the price target from $80 to $85.
- Baird analyst William Power maintained a Neutral rating on DocuSign and raised the price target from $85 to $90.
- Piper Sandler analyst Rob Owens maintained a Neutral rating on DocuSign and raised the price target from $85 to $90.
- B of A Securities analyst Brad Sills maintained a Neutral rating on DocuSign and raised the price target from $85 to $102.
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DOCU Price Action: At the time of writing, DocuSign shares are trading 4.38% higher at $79.58, according to data from Benzinga Pro.
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