Zacks Research Has Positive Outlook for Docusign Q1 Earnings

Docusign Inc. (NASDAQ:DOCU) – Analysts at Zacks Research increased their Q1 2027 earnings estimates for shares of Docusign in a research note issued to investors on Tuesday, April 7th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.36 per share for the quarter, up from their prior estimate of $0.32. The consensus estimate for Docusign’s current full-year earnings is $1.17 per share. Zacks Research also issued estimates for Docusign’s Q2 2027 earnings at $0.30 EPS, Q3 2027 earnings at $0.42 EPS, Q4 2027 earnings at $0.45 EPS, FY2027 earnings at $1.53 EPS, Q1 2028 earnings at $0.45 EPS, Q2 2028 earnings at $0.43 EPS, Q3 2028 earnings at $0.41 EPS, Q4 2028 earnings at $0.59 EPS and FY2028 earnings at $1.89 EPS.

Docusign (NASDAQ:DOCU) last released its quarterly earnings results on Tuesday, March 17th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.06. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The firm had revenue of $836.86 million during the quarter, compared to analysts’ expectations of $828.23 million. During the same period in the previous year, the company earned $0.86 EPS. The firm’s revenue for the quarter was up 7.8% compared to the same quarter last year.

A number of other equities research analysts have also weighed in on DOCU. Citizens Jmp decreased their price objective on shares of Docusign from $124.00 to $86.00 and set a “market outperform” rating for the company in a report on Wednesday, March 18th. Jefferies Financial Group lowered shares of Docusign from a “buy” rating to a “hold” rating and reduced their price target for the company from $105.00 to $45.00 in a report on Monday, February 23rd. Robert W. Baird cut their price objective on shares of Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. HSBC set a $53.00 price objective on shares of Docusign in a research report on Friday, February 13th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Docusign from $78.00 to $65.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Four research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Docusign presently has a consensus rating of “Hold” and an average target price of $61.40.

Docusign Trading Down 5.8%

DOCU stock opened at $42.91 on Friday. Docusign has a 12 month low of $40.16 and a 12 month high of $94.67. The company has a 50-day moving average price of $46.48 and a 200 day moving average price of $60.52. The stock has a market cap of $8.34 billion, a PE ratio of 28.99, a P/E/G ratio of 1.74 and a beta of 0.99.

Docusign announced that its Board of Directors has initiated a stock buyback program on Tuesday, March 17th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to buy up to 21% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Docusign

In related news, insider Robert Chatwani sold 16,696 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $48.10, for a total value of $803,077.60. Following the completion of the transaction, the insider directly owned 72,458 shares in the company, valued at $3,485,229.80. The trade was a 18.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CRO Paula Hansen sold 6,000 shares of the company’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $46.84, for a total transaction of $281,040.00. Following the transaction, the executive owned 79,233 shares of the company’s stock, valued at $3,711,273.72. This represents a 7.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 64,673 shares of company stock worth $3,077,699. Insiders own 1.01% of the company’s stock.

Hedge Funds Weigh In On Docusign

Large investors have recently added to or reduced their stakes in the stock. Central Pacific Bank Trust Division acquired a new position in Docusign during the fourth quarter worth $25,000. Modus Advisors LLC purchased a new stake in shares of Docusign in the fourth quarter valued at about $27,000. Torren Management LLC purchased a new position in Docusign during the fourth quarter worth about $28,000. True Wealth Design LLC boosted its stake in Docusign by 105.2% during the fourth quarter. True Wealth Design LLC now owns 433 shares of the company’s stock worth $30,000 after buying an additional 222 shares during the period. Finally, Aventura Private Wealth LLC purchased a new position in Docusign during the fourth quarter worth about $30,000. 77.64% of the stock is currently owned by institutional investors and hedge funds.

More Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign raised revenue guidance for Q1 FY2027 and FY2027 (Q1 revenue guidance $822M–$826M vs. $813.5M consensus; FY revenue ~$3.5B vs. $3.4B consensus), which supports near-term top-line momentum and reduces execution risk.
• Positive Sentiment: Multiple Zacks Research estimate upgrades — including higher FY2027, FY2028 and FY2029 EPS projections — signal improving analyst expectations for profitability and longer-term earnings power. Investors Heavily Search Docusign Inc. (DOCU): Here is What You Need to Know
• Neutral Sentiment: Recent coverage pieces frame DocuSign as a profitable, large-scale software business that has nonetheless seen a share-price reset — useful context for value vs. growth debate but not new company-specific data. Evaluating DocuSign (DOCU) After Recent Share Price Weakness And Growth Repricing
• Neutral Sentiment: Zacks and other outlets are highlighting heightened investor attention around DOCU ahead of earnings and guidance cycles — this can increase intraday volatility but doesn’t change fundamentals on its own. These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar
• Negative Sentiment: Citi downgraded DOCU from Buy to Neutral and cut its price target sharply from $99 to $50, signaling reduced conviction on valuation and growth premium — this sell-side action is a direct negative catalyst for the stock. Citi Cuts Docusign to Neutral With a $50 Target: Has the E-Signature Pioneer Lost Its Edge?
• Negative Sentiment: DocuSign and peers are under pressure as AI-focused software names surge, prompting relative-performance selling and concerns over competitive displacement or faster re-rating of AI beneficiaries. DocuSign, Autodesk under increased pressure as AI players surge

About Docusign

DocuSign, Inc (NASDAQ: DOCU) is a leading provider of electronic signature and digital transaction management solutions. The company’s flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign’s Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign’s platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.