DocuSign (DOCU, Financials) shares fell in after-hours trading Thursday after the company reported better-than-expected Q1 results but trimmed its full-year billings forecast. The electronic signature firm posted adjusted earnings of $0.90 per share, beating Wall Street's estimate of $0.81. Revenue rose 7.6% year over year to $763.65 million, surpassing the $748.14 million consensus.
The company said subscription revenue grew 8% to $746.2 million, while professional services and other revenue increased 4% to $17.5 million.
For fiscal 2026, DocuSign guided revenue to $3.151 billion–$3.163 billion, above analyst expectations of $3.136 billion. It projected a non-GAAP operating margin between 27.8% and 28.8%, roughly in line with consensus. However, management lowered full-year billings guidance to a range of $3.285 billion–$3.339 billion, down from the prior $3.3 billion–$3.354 billion forecast, weighing on investor sentiment.
Wall Street maintains a Hold consensus on DOCU, with an average price target of $92.71, implying limited upside from current levels. That outlook could shift pending updated analyst revisions after the earnings report.
