Summary
Docusign closed fiscal 2026 with a fourth quarter that paired moderate revenue growth with much stronger profit expansion. Revenue was $836.9 million for the quarter ended January 31, 2026, up 7.8% from the prior-year quarter. Gross profit was $667.1 million, up 8.3%. Operating income was $87.7 million, up 45.1%. Net income was $90.3 million, up 8.2%. GAAP gross margin was 79.7%, up 0.4 percentage points. GAAP operating margin was 10.5%, up 2.7 percentage points. Operating cash flow was $377.2 million, up 22.5%. Capital expenditures were $27.0 million, down 4.7%. Deferred revenue was $1.63 billion, up 12.1%. Remaining performance obligations were $2.40 billion, flat year over year.
For the full fiscal year, revenue was $3.22 billion, up 8.2%. Gross profit was $2.56 billion, up 8.5%. Operating income was $298.6 million, up 49.3%. Net income was $309.1 million, down 71.1%, reflecting the prior-year release of a large U.S. tax valuation allowance. Diluted EPS was $1.48, down 70.9%. Operating cash flow was $1.17 billion, up 14.5%. Capital expenditures were $106.4 million, up 9.8%. On a non-GAAP basis, the company reported a full-year operating margin of 30.1%, up from 29.8%, and non-GAAP net income per diluted share of $3.84, up from $3.55. Free cash flow was $1.06 billion for the fiscal year, compared with $920.3 million in the prior year. Billings were $3.4 billion, up 10% year over year.
The IAM platform is becoming a bigger part of the story. ARR was $3,272 million as of January 31, 2026, up 8.0% from $3,030 million a year earlier. IAM represented 10.8% of total ARR, up from 2.3% a year earlier. Docusign expanded IAM capabilities during the quarter, including general availability of Agreement Desk, AI-Assisted Review, AI-powered eSignature, AI-Assisted Agreement Summaries, automated agreement preparation, and third-party data verification. The customer base grew to over 1.8 million customers, including roughly 280,000 served by the direct sales force, from nearly 1.7 million customers and over 260,000 direct customers a year earlier. The number of customers with more than $300,000 in annualized contract value rose to 1,205 from 1,131. The company also increased its share repurchase authorization by up to $2.0 billion and had $2.6 billion remaining as of March 17, 2026. It repurchased $269.1 million of stock in the quarter and $869.1 million for the full year.
Guidance points to steady growth but a changing disclosure mix. For the quarter ending April 30, 2026, Docusign guided total revenue growth of about 8% at the midpoint versus the year-ago quarter. It expects non-GAAP gross margin of 80.8% to 81.2% and non-GAAP operating margin of 29.0% to 29.5%. For the full fiscal year ending January 31, 2027, the revenue growth midpoint is also roughly 8%. The company guided ARR growth of 8.25% to 8.75%, non-GAAP gross margin of 81.5% to 82.0%, and non-GAAP operating margin of 30.0% to 30.5%. Excluding foreign exchange effects, revenue guidance would be about 1.6 percentage points lower for the April quarter and 1.4 percentage points lower for the full year. Management said it will stop reporting and guiding billings beginning in the first quarter of fiscal 2027.
Risks remain broad. The company cited macroeconomic conditions, inflation, volatile interest rates and foreign exchange rates, competition, infrastructure interruptions, data breaches, and execution on AI and IAM adoption. It also flagged reliance on customer renewals, sales force retention, international expansion, acquisitions, litigation, and internal controls. Tax law changes under the One Big Beautiful Bill Act added tax expense in fiscal 2026. Docusign has a $750.0 million revolving credit facility with no outstanding borrowings as of January 31, 2026, maturing in May 2030. The buyback offers support, but flat RPO and heavy repurchase activity keep both growth and capital allocation in focus.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $836.9M | $818.4M | +2.3% | $776.3M | +7.8% |
| Gross profit | $667.1M | $647.8M | +3.0% | $616.0M | +8.3% |
| Gross margin | 79.7% | 79.2% | +0.5 pp | 79.4% | +0.3 pp |
| Research & development | $168.3M | $167.6M | +0.4% | $155.5M | +8.2% |
| Sales & marketing | $305.5M | $296.5M | +3.0% | $301.3M | +1.4% |
| General & administrative | $105.5M | $98.3M | +7.4% | $98.8M | +6.8% |
| Total operating expenses | $579.3M | $562.4M | +3.0% | $555.6M | +4.3% |
| Operating income (loss) | $87.7M | $85.4M | +2.8% | $60.5M | +45.1% |
| Operating margin | 10.5% | 10.4% | +0.1 pp | 7.8% | +2.7 pp |
| Net income (loss) | $90.3M | $83.7M | +7.9% | $83.5M | +8.2% |
| Net margin | 10.8% | 10.2% | +0.6 pp | 10.8% | +0.0 pp |
| Diluted EPS | $0.43 | $0.40 | +$0.03 | $0.40 | +$0.03 |
| Customers | 25,000 | 1,165 | +2045.9% | — | — |
Risks
Advances in AI may make foundational agreement capabilities cheaper to replicate and enable LLMs, hyperscalers, or homegrown agents to compete with Docusign; the filing also warns AI development and inference costs may reduce profitability. MD&A highlights IAM and AI-driven product innovation as a growth pillar.
Subscriptions to eSignature account for the substantial majority of subscription and professional services revenue, and slower or declining eSignature adoption without corresponding IAM sales could harm operating results. Fiscal 2026 total revenue rose 8.2% year over year, but the company remains substantially dependent on eSignature.
The IAM platform may fail to achieve market acceptance or meet evolving customer needs, and the company has incurred significant upfront research, development, marketing, and sales expenses. IAM represented 10.8% of total ARR as of January 31, 2026, up from 2.3% as of January 31, 2025, but still a minority of ARR.
Docusign is a frequent target of cyberattacks and has faced past security incidents; AI is increasing automated, targeted, and coordinated attacks, including prompt injection, deepfakes, and account takeover. Third-party cloud, open-source, and AI model providers expand the attack surface.
Sales cycles for enterprise and commercial customers are long and unpredictable, generally three to nine months, and are often longer for CLM and advanced IAM offerings. This makes timing of revenue recognition and ARR difficult to predict.
The company may need to reduce or change pricing to remain competitive, including the IAM platform's user-based subscription with transaction-based add-ons introduced in Q2 fiscal 2025. Mid- to large-size enterprises may demand substantial price discounts.
Existing and new AI laws, such as the EU Artificial Intelligence Act and U.S. state rules on automated decision-making and high-risk AI, may require additional quality controls, impact assessments, and compliance costs. The company also faces potential 'AI washing' allegations if AI disclosures are deemed exaggerated.
Docusign collects, stores, and processes sensitive customer, employee, partner, and health data, subject to GDPR, FTC, OCR, California, and other privacy regimes. Increased regulatory focus on dark patterns, data minimization, and AI-related disclosures raises enforcement and litigation risk.
The company depends on highly skilled personnel, including senior management and software engineers, and competition for AI expertise is intense. Leadership transitions and hybrid work arrangements could disrupt operations or increase compensation costs.
Unfavorable industry or global economic conditions, reductions in IT spending, inflation, interest rate changes, tariffs, and geopolitical conflict could slow customer spending and make forecasting difficult. The filing notes these factors may disproportionately affect demand if customers perceive Docusign as costly or difficult to deploy.
International revenue was 29% of total revenue for the year ended January 31, 2026, and about 40% of full-time employees were outside the U.S. as of that date. Further expansion creates regulatory, labor, localization, and collection risks.
The One Big Beautiful Bill Act enacted July 4, 2025 and OECD global minimum tax legislation could increase the effective tax rate and cash tax payments. Fiscal 2026 provision for income taxes increased $858.2 million or 105% year over year, primarily due to the prior-year valuation allowance release and higher pretax profit.
The company relies on strategic partners, resellers, and complementary technology integrations such as Salesforce, Microsoft, SAP, Google, ServiceNow, and Workday. Partners may offer competing products, terminate relationships, or fail to comply with government contracting rules.
Sales to U.S. federal, state, local, and non-U.S. government entities and highly regulated organizations involve long, expensive cycles and complex compliance requirements. Reseller noncompliance or budget reductions could harm public sector sales.
SaaS KPIs
All quarters →Total Customers
Free Cash Flow
Non-GAAP Operating Margin
Billings
Customers served by direct sales force
Summary, forecast, risks and KPIs are extracted from DOCUSIGN, INC.'s SEC filings for Q4 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.