DocuSign Q2 revenue rallies to $875.7 million

• DocuSign (NASDAQ:DOCU) reported second quarter fiscal 2027 revenue of $875.7 million, up 9% year over year.
• Non-GAAP diluted EPS increased to $1.16, while free cash flow reached $295.8 million.
• The company expects fiscal 2027 revenue of $3.499 billion to $3.507 billion, with IAM projected to reach 18% to 19% of ARR by Q4.

DocuSign (NASDAQ:DOCU) reported second quarter fiscal 2027 revenue of $875.7 million for the period ended July 31, 2026, up 9% year over year, while increasing adoption of its Intelligent Agreement Management platform.

The revenue increase compared with the prior-year period, as the company reported higher earnings per share, improved cash generation, and growth in IAM’s contribution to annual recurring revenue.

DocuSign reported GAAP diluted earnings per share of $0.40 compared with $0.30 a year earlier, while non-GAAP diluted EPS increased to $1.16 from $0.92.

The company reported GAAP gross margin of 79.7%, non-GAAP gross margin of 81.7%, operating cash flow of $334.5 million, and free cash flow of $295.8 million, while repurchasing $306.5 million of common stock during the quarter.

DocuSign also increased its fiscal 2027 revenue outlook to $3.499 billion to $3.507 billion and expects annual recurring revenue growth of 8.5% to 9%, with IAM forecast to represent approximately 18% to 19% of total ARR exiting the fourth quarter.