Shares of Docusign Inc (NASDAQ:DOCU) rallied in early trading on Wednesday, after the company reported fourth-quarter results.
Here are the key analyst insights:
- Citizens JMP Securities analyst Patrick Walravens reiterated a Market Outperform rating, while slashing the price target from $124 to $86.
- BTIG analyst Allan Verkhovski maintained a Buy rating and price target of $70.
Check out other analyst stock ratings.
Citizens JMP Securities: Docusign reported non-GAAP earnings of $1.01 per share. It beat the consensus of 95 cents per share. The company's revenue of $837 million and non-GAAP operating margin of 29.5% came in better than consensus estimates of $827 million and 28.5%, respectively.
Management guided to non-GAAP operating margins of 29.0%-29.5% on revenue of $822-$826 million for the first quarter of fiscal 2027, versus consensus estimates of 29.0% and $813 million, respectively, Walravens said in a note. The IAM product cycle is a “compelling long-term opportunity,” he added.
IAM reached $350 million, or 11% of revenue, in Q4 with guidance to $600 million or 18% of total revenue by the end of fiscal 2027.
BTIG: Docusign exited fiscal 2026 with ARR growth of 8%, in-line with the previous year. ARR growth was driven by accelerating gross new bookings. IAM ARR surpassed $350 million, and gross retention improved.
Management expects ARR growth to accelerate to 8.5% in fiscal 2027. This implies around 15% NNARR growth, up from 8% in the previous year. "IAM is broadly resonating across diverse industries, company sizes, and geos, and early signs of customer stickiness are highly encouraging with the first renewal cohorts exhibiting higher GRR and NRR than the company average," Verkhovski said.
DOCU Price Action: Shares of Docusign had risen by 3.13% to $49.03 at the time of publication on Wednesday.
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