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Docusign Reports Strong Financial Results for Q3 FY2026

Docusign, Inc. (NASDAQ: DOCU) revealed its financial results for the third quarter of fiscal year 2026, ending on October 31, 2025. The data reflects a substantial 8% increase in total revenue, reaching $818.4 million compared to the same quarter last year. A notable contributor to this growth was the subscription revenue segment, which rose by 9% year-over-year, amounting to $801.0 million. The company reported a positive inch in revenue from foreign exchange rates, accounting for about 0.5% of this growth.

According to Docusign’s CEO, Allan Thygesen, the quarter demonstrated significant operational execution and efficiency improvements, marking one of the strongest periods both in terms of topline growth and profitability seen in the last two years. In addition, total billings for the quarter reached $829.5 million, a 10% increase from the previous year, reflecting a strong customer base that now exceeds 25,000, utilizing the Docusign Intelligent Agreement Management (IAM) platform.

Financial Highlights

• - GAAP net income stood at $83.7 million, equating to $0.41 per basic share.
• - GAAP gross margin reported at a healthy 79.2%, slightly down from 79.3% during the same period last year.
• - Free cash flow was recorded at $262.9 million, up from $210.7 million in the prior year, demonstrating heightened operational efficiency.

Moreover, Docusign's cash reserves totaled approximately $1 billion by the end of the quarter, constituting a strong financial foundation for future investments.

Key Business Developments

This quarter highlighted not only impressive financial results but also announced several key advancements related to the IAM platform:
1. Expanded Customer Base: Docusign surpassed 25,000 customers with about 150 million opted-in agreements stored in the Docusign Navigator repository, averaging over 5,000 contracts per customer.
2. Innovative Integrations: The IAM platform now integrates with popular AI systems, including ChatGPT and Microsoft's Copilot, reflecting the company's ongoing commitment to leveraging technology to enhance customer experience.
3. New Features Launch: Docusign launched Navigator API and Maestro API, enhancing the integration capabilities with third-party systems, which is a crucial step in streamlining agreement management workflows.

Industry Recognition

Docusign continued to receive accolades in the industry, being named a Leader in the Gartner CLM Magic Quadrant for the sixth consecutive year. Additionally, the company was featured on the 2025 Fortune Future 50 list for its innovative AI solutions and recognized with a Salesforce Partner Innovation Award during Dreamforce.

Future Outlook

Looking forward, Docusign expects to maintain its robust performance trajectory, with the guidance for total revenue ranging between $825 million and $829 million for the next quarter, representing another 7% year-over-year growth. Furthermore, the firm anticipates a promising fiscal year ending January 31, 2026, estimating total revenue to surpass $3.2 billion.

Docusign is committed to enhancing its product offerings and expanding its market reach, while ensuring core operational excellence remains a priority. The response from customers and the market reinforces the company's strategic direction and long-term growth potential.

For further financial details and to participate in the upcoming conference call, visit Docusign's Investor Relations website for live updates and resources.

Conclusion

In conclusion, Docusign’s financial results for Q3 of fiscal year 2026 showcase a thriving business poised for continued success. The combination of rapid revenue growth, innovative solutions, and strong customer engagement heralds a bright future for this leading name in the agreement management sector.