Zacks Research Brokers Boost Earnings Estimates for Docusign

Key Points

• Zacks Research raised Docusign’s earnings forecasts, lifting FY2027 EPS to $1.96 from $1.69 and projecting FY2028 and FY2029 EPS of $2.07 and $1.95, respectively.
• Docusign’s latest quarterly results exceeded expectations, with EPS of $1.16 versus the $1.09 consensus and revenue of $875.75 million versus $867.22 million; revenue increased 9.4% year over year.
• Despite several analysts raising price targets, coverage remains cautious: the stock has a consensus “Hold” rating and an average target price of $67.33.

Docusign Inc. (NASDAQ:DOCU - Free Report) - Stock analysts at Zacks Research raised their FY2027 earnings estimates for shares of Docusign in a note issued to investors on Thursday, September 24th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $1.96 for the year, up from their previous forecast of $1.69. The consensus estimate for Docusign's current full-year earnings is $2.10 per share. Zacks Research also issued estimates for Docusign's Q1 2028 earnings at $0.49 EPS, Q2 2028 earnings at $0.49 EPS, Q3 2028 earnings at $0.51 EPS, Q4 2028 earnings at $0.57 EPS, FY2028 earnings at $2.07 EPS, Q1 2029 earnings at $0.66 EPS, Q2 2029 earnings at $0.67 EPS and FY2029 earnings at $1.95 EPS.

Docusign (NASDAQ:DOCU - Get Free Report) last released its quarterly earnings data on Thursday, September 3rd. The company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.07. The company had revenue of $875.75 million during the quarter, compared to the consensus estimate of $867.22 million. Docusign had a net margin of 9.82% and a return on equity of 18.29%. Docusign's revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.30 earnings per share.

DOCU has been the topic of a number of other research reports. Wells Fargo & Company raised their price target on Docusign from $55.00 to $60.00 and gave the stock an "equal weight" rating in a research note on Friday, September 4th. Wall Street Zen downgraded Docusign from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 2nd. Bank of America raised their target price on shares of Docusign from $58.00 to $64.00 and gave the stock an "underperform" rating in a research report on Friday, September 4th. BTIG Research upped their price target on shares of Docusign from $60.00 to $75.00 and gave the company a "buy" rating in a research report on Wednesday, September 2nd. Finally, Needham & Company LLC reiterated a "hold" rating on shares of Docusign in a research note on Friday, September 4th. Three equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $67.33.

Docusign Stock Performance

DOCU opened at $66.98 on Tuesday. Docusign has a one year low of $40.16 and a one year high of $82.44. The stock has a market capitalization of $12.52 billion, a P/E ratio of 40.84, a price-to-earnings-growth ratio of 2.54 and a beta of 0.90. The business's 50-day simple moving average is $61.99 and its 200-day simple moving average is $52.43.

Institutional Investors Weigh In On Docusign

Several institutional investors have recently modified their holdings of the company. QRG Capital Management Inc. boosted its position in Docusign by 31.2% during the second quarter. QRG Capital Management Inc. now owns 11,132 shares of the company's stock worth $495,000 after purchasing an additional 2,645 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its position in shares of Docusign by 3.1% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 11,867 shares of the company's stock valued at $527,000 after buying an additional 356 shares in the last quarter. Integrated Wealth Concepts LLC increased its position in shares of Docusign by 2.0% in the second quarter. Integrated Wealth Concepts LLC now owns 14,359 shares of the company's stock valued at $638,000 after buying an additional 277 shares in the last quarter. NewEdge Advisors LLC raised its stake in shares of Docusign by 29.8% during the 2nd quarter. NewEdge Advisors LLC now owns 14,311 shares of the company's stock worth $636,000 after buying an additional 3,287 shares during the last quarter. Finally, IFP Advisors Inc raised its stake in shares of Docusign by 38.9% during the 2nd quarter. IFP Advisors Inc now owns 3,923 shares of the company's stock worth $174,000 after buying an additional 1,098 shares during the last quarter. Hedge funds and other institutional investors own 77.64% of the company's stock.

Insider Transactions at Docusign

In related news, Director Mary Wilderotter sold 1,096 shares of the business's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $70.60, for a total transaction of $77,377.60. Following the sale, the director owned 3,199 shares of the company's stock, valued at approximately $225,849.40. The trade was a 25.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 14,676 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $69.41, for a total transaction of $1,018,661.16. Following the transaction, the insider owned 75,928 shares in the company, valued at $5,270,162.48. The trade was a 16.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 182,568 shares of company stock valued at $10,892,550. 0.59% of the stock is owned by company insiders.

Key Headlines Impacting Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS forecast to $1.96 from $1.69, FY2028 EPS to $2.07 from $1.76, and FY2029 EPS to $1.95 from $1.35. These sizable increases imply improved confidence in Docusign’s long-term earnings outlook and may support the stock. Zacks Research Has Bullish Forecast for Docusign Q3 Earnings
• Positive Sentiment: Quarterly estimates were also lifted for Q1 2028 to $0.49 EPS from $0.47, Q2 2028 to $0.49 from $0.28, Q3 2028 to $0.51 from $0.38, and Q2 2029 to $0.67 from $0.21. The upgrades point to expectations for accelerating earnings growth over the next several years.
• Positive Sentiment: Zacks identified Docusign as a top long-term momentum stock, reinforcing the favorable technical and fundamental narrative around DOCU. Why DocuSign Is a Top Momentum Stock for the Long-Term
• Neutral Sentiment: Zacks maintained a current full-year consensus EPS reference of $2.10, while its updated estimates imply FY2028 earnings of $2.07 and FY2029 earnings of $1.95. Investors may view the longer-term upgrades positively, but the forecasts still indicate uncertainty about the pace of growth.
• Negative Sentiment: Zacks lowered its Q4 2028 EPS estimate to $0.57 from $0.62 and Q1 2029 EPS to $0.66 from $0.73. These isolated reductions temper the bullish outlook and suggest some variability in future quarterly results.

Docusign Company Profile

DocuSign, Inc is a provider of digital agreement management and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping businesses replace paper-based contracting processes with digital workflows.

The company's products and services include DocuSign eSignature, which supports electronic signing and authentication, as well as tools for contract lifecycle management, agreement preparation, identity verification, notarial services and workflow automation.

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