DocuSign, Inc. (NASDAQ:DOCU) shares rose Friday after the e-signature giant beat second-quarter expectations.
The company posted earnings of 92 cents per share, topping the consensus of 84 cents. Revenue climbed 9% year-over-year to $800.6 million, beating the $780.2 million estimate.
DocuSign also raised its fiscal 2026 revenue guidance to $3.19–3.20 billion, above the prior Street estimate of $3.16 billion.
JPMorgan analyst Mark R Murphy maintained a Neutral rating on DocuSign, raising his price target from $77 to $80. The risk-reward, he says, is balanced. The near-term growth is beginning to stabilize as go-to-market execution improves following a multi-year reset.
Murphy highlighted potential in DocuSign's IAM product cycle, though he noted it will take time to broaden the business mix. While the shares trade at a discount, he's watching for clearer progress on GAAP profitability to support the valuation.
DocuSign remains a category leader in application software, anchored by its eSignature product with an estimated 60% market share and adoption across more than three-quarters of the Fortune 500. With pandemic-era tailwinds normalizing, Murphy said future growth hinges on selling more to existing clients and expanding usage of the broader CLM and IAM suite—key steps toward a $5 billion-plus revenue target.
He cautioned that near-term billings and revenue may remain uneven as management implements executive transitions and a sales reorganization to drive demand and new-customer acquisition. Sustained progress on upselling, suite penetration, and go-to-market focus will determine whether DocuSign can convert its installed-base advantage into durable, scalable growth.
Price Action: DOCU shares are trading higher by 4.58% to $79.81 at last check on Friday.
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