Q3 Earnings Forecast for Docusign Issued By Zacks Research

Key Points

• Analysts at Zacks Research upgraded their Q3 2026 earnings per share estimate for Docusign from $0.23 to $0.25, maintaining a "Strong-Buy" rating on the stock.
• Docusign's recent earnings report showed an EPS of $0.92, exceeding the expected $0.84, with a revenue of $800.64 million, surpassing predictions of $780.35 million.
• The company has initiated a $1 billion share repurchase program, allowing for the buyback of up to 6.6% of its shares, indicating management's belief that the stock is undervalued.

Docusign Inc. (NASDAQ:DOCU - Free Report) - Investment analysts at Zacks Research lifted their Q3 2026 earnings per share (EPS) estimates for shares of Docusign in a note issued to investors on Thursday, September 25th. Zacks Research analyst Team now expects that the company will post earnings of $0.25 per share for the quarter, up from their previous forecast of $0.23. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Docusign's current full-year earnings is $1.17 per share. Zacks Research also issued estimates for Docusign's Q1 2028 earnings at $0.40 EPS.

Docusign (NASDAQ:DOCU - Get Free Report) last released its earnings results on Thursday, September 4th. The company reported $0.92 EPS for the quarter, topping the consensus estimate of $0.84 by $0.08. Docusign had a return on equity of 14.01% and a net margin of 9.08%.The firm had revenue of $800.64 million during the quarter, compared to analysts' expectations of $780.35 million. During the same period in the previous year, the firm posted $0.97 EPS. Docusign's revenue for the quarter was up 8.8% on a year-over-year basis. Docusign has set its Q3 2026 guidance at EPS. FY 2026 guidance at EPS.

DOCU has been the subject of several other reports. UBS Group set a $95.00 target price on Docusign in a research note on Friday, September 5th. Bank of America boosted their target price on Docusign from $85.00 to $102.00 and gave the stock a "neutral" rating in a research note on Friday, September 5th. Royal Bank Of Canada boosted their target price on Docusign from $90.00 to $95.00 and gave the stock a "sector perform" rating in a research note on Friday, September 5th. Needham & Company LLC reaffirmed a "hold" rating on shares of Docusign in a research report on Friday, September 5th. Finally, Piper Sandler upped their price objective on Docusign from $85.00 to $90.00 and gave the stock a "neutral" rating in a research report on Friday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $94.14.

Docusign Price Performance

DOCU opened at $81.52 on Monday. Docusign has a 12 month low of $60.60 and a 12 month high of $107.86. The stock has a market capitalization of $16.39 billion, a price-to-earnings ratio of 61.29, a PEG ratio of 4.27 and a beta of 1.02. The business has a fifty day moving average price of $77.00 and a 200 day moving average price of $79.45.

Institutional Trading of Docusign

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Banque Transatlantique SA purchased a new stake in Docusign during the 1st quarter valued at approximately $26,000. Hemington Wealth Management raised its stake in shares of Docusign by 318.1% during the 1st quarter. Hemington Wealth Management now owns 347 shares of the company's stock worth $28,000 after buying an additional 264 shares in the last quarter. Golden State Wealth Management LLC raised its stake in shares of Docusign by 519.4% during the 1st quarter. Golden State Wealth Management LLC now owns 384 shares of the company's stock worth $31,000 after buying an additional 322 shares in the last quarter. Summit Securities Group LLC purchased a new position in shares of Docusign during the 1st quarter worth approximately $34,000. Finally, MassMutual Private Wealth & Trust FSB raised its stake in shares of Docusign by 153.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 453 shares of the company's stock worth $37,000 after buying an additional 274 shares in the last quarter. 77.64% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Docusign

In related news, CFO Blake Jeffrey Grayson sold 9,509 shares of the company's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $83.10, for a total value of $790,197.90. Following the completion of the sale, the chief financial officer directly owned 112,160 shares of the company's stock, valued at $9,320,496. This represents a 7.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Peter Solvik sold 15,000 shares of the company's stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $81.48, for a total value of $1,222,200.00. Following the completion of the sale, the director directly owned 135,253 shares of the company's stock, valued at approximately $11,020,414.44. This trade represents a 9.98% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 82,533 shares of company stock worth $6,598,028. Insiders own 1.66% of the company's stock.

Docusign declared that its Board of Directors has initiated a share repurchase program on Thursday, June 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to repurchase up to 6.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its stock is undervalued.

About Docusign

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.

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