Update shared on06 Sep 2025
Fair value Increased 4.01%DocuSign's analyst price target has been revised upward to $92.87, reflecting stronger-than-expected Q2 results, improving net retention rates, successful platform innovations, and a recovery in renewal activity, with some caution persisting as analysts await further sustained execution.
Analyst Commentary
- Bullish analysts cite stronger-than-expected Q2 results with beats on revenue, subscription revenue, billings, and non-GAAP operating margin, reflecting improved execution and outperformance of guidance.
- Net retention rate (NRR) improved quarter-over-quarter, signaling better customer stickiness and growing value across the eSignature portfolio and initial traction with Identity and Access Management (IAM) offerings.
- Upward revisions in full-year guidance for revenue and billings were driven by successful platform innovations and go-to-market (GTM) adjustments, resulting in stronger commercial, enterprise, and international adoption.
- Analysts note a notable recovery in renewal activity, which contributed to billings strength and offered relief following prior concerns over early renewal timing issues.
- Some remain on the sidelines, awaiting further quarters of consistent execution before turning more constructive, despite encouragement from improved NRR and early traction in new product segments.
What's in the News
- DocuSign issued earnings guidance, expecting $804–$808 million in quarterly revenue and $3,189–$3,201 million for the fiscal year.
- The company completed its share repurchase program, buying back 19,905,030 shares (9.8% of shares outstanding) for $1.28 billion.
- DocuSign was added to multiple value-focused Russell indices, including the Russell 1000, 3000, Midcap, Small Cap Comp, and 3000E Value Benchmarks.
- A new partnership with Guidewire enables integrated DocuSign e-signature solutions for property and casualty insurers, streamlining digital agreements and expanding reach through direct written premium-based pricing.
- DocuSign introduced six new digital signature styles to enhance personalization, responding to a shift in generational preferences and rising demand for both security and individualized signature aesthetics.
Valuation Changes
Summary of Valuation Changes for DocuSign
- The Consensus Analyst Price Target has risen slightly from $89.57 to $92.87.
- The Future P/E for DocuSign has risen from 62.20x to 66.08x.
- The Net Profit Margin for DocuSign has fallen slightly from 9.71% to 9.41%.
Disclaimer
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