DocuSign Q1 2026 Earnings Report
Key Takeaways
Docusign reported strong financial performance in Q1 fiscal 2026, with revenue increasing 8% year-over-year to $763.7 million and GAAP net income of $72.1 million. The company also announced an increase of $1.0 billion to its share repurchase program.
Total revenue for Q1 fiscal 2026 was $763.7 million, an 8% increase year-over-year.
GAAP net income for the quarter was $72.1 million, resulting in $0.34 GAAP net income per diluted share.
Non-GAAP net income per diluted share was $0.90 for the quarter.
The board of directors authorized an additional $1.0 billion increase to the existing stock repurchase program.
DocuSign
DocuSign
DocuSign Revenue by Segment
Forward Guidance
For the quarter ending July 31, 2025, Docusign expects total revenue between $777 million and $781 million, subscription revenue between $760 million and $764 million, and billings between $757 million and $767 million. Non-GAAP gross margin is expected to be between 80.5% and 81.5%, and non-GAAP operating margin between 26.5% and 27.5%. For the full fiscal year ending January 31, 2026, total revenue is expected between $3,151 million and $3,163 million, subscription revenue between $3,083 million and $3,095 million, and billings between $3,285 million and $3,339 million. Non-GAAP gross margin is expected between 80.7% and 81.7%, and non-GAAP operating margin between 27.8% and 28.8%.
Positive Outlook
- Expected continued revenue growth in both the next quarter and full fiscal year.
- Anticipated increase in subscription revenue for both periods.
- Projected growth in billings for both the next quarter and full fiscal year.
- Expected stable to improved non-GAAP gross margin.
- Projected strong non-GAAP operating margin.
Challenges Ahead
- Impact of foreign currency exchange rates on year-over-year revenue growth expected to be neutral for both periods.
- Excluding foreign currency impact, billings guidance range would be approximately 0.7 points lower for both periods.
- Reconciliation of non-GAAP guidance to GAAP guidance not available without unreasonable effort due to uncertainty of future expenses.
- Stock-based compensation and related taxes are difficult to predict and subject to change.
- Future hiring and retention needs are difficult to predict and subject to constant change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income