DocuSign Stock Plummets Despite Beat-and-Raise Quarter But Retail Goes All-Out Into The Stock

CEO Allan Thygesen said Q1 was an important quarter for the company’s transformational initiatives and that DocuSign surpassed 10,000 Intelligent Agreement Management customers.

DocuSign, Inc. (DOCU) stock plummeted in Friday's premarket session despite the cloud platform provider’s better-than-expected quarterly results, but retail traders rallied behind the company.

The company also raised its full-year revenue forecast. Some of the stock weakness may have to do with the subpar quarterly billings. 

DocuSign’s board authorized a new buyback program to buy up to $1 billion.

The San Francisco, California-based company’s platform allows individuals and businesses to sign and share documents electronically.

Retail sentiment toward DocuSign stock stayed ‘extremely bullish’ (99/100) by early Friday, with the message volume also staying at ‘extremely high’ levels.

A bullish user said, “How can you not like this buying opportunity?? What a gift!,” referring to the after-hours slump.

Another user said they bought the dip, keeping fingers crossed.

DocuSign reported adjusted earnings per share (EPS) of $0.90 for the first quarter of fiscal year 2026, up from $0.82 earned a year ago and ahead of the Finchat-compiled consensus of $0.91.

Revenue climbed 8% year over year (YoY) to $763.7 million versus the $748.92-million average analysts’ estimate and the $745 million-$749 million guidance.

Billings climbed 4% to $739.6 million, trailing the company’s forecast of $741 million to $751 million.

CEO Allan Thygesen said, “Q1 was an important quarter for Docusign's long-term transformation as we delivered on an ambitious product roadmap and surpassed 10,000 Intelligent Agreement Management customers.”

The company’s second-quarter revenue guidance was in line with the consensus, and it marginally upped its 2026 revenue guidance to $3.151 billion-$3.163 billion from $3.129 billion-$3.141 billion. The new full-year revenue guidance exceeded the $3.137 billion consensus.

DocuSign stock plunged over 18% to $75.93 in Friday's early premarket session, while it is up over 3% year-to-date. If the premarket losses are sustained in Friday’s session, the stock could be on track for its worst day in more than two years.

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