DocuSign (DOCU) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $801M, up 9% year-over-year, with billings at $818M, up 13% year-over-year, driven by innovation in eSignature, CLM, and AI-native IAM platform.

• Profitability remained robust, with non-GAAP operating margin at 29.8–30% and free cash flow margin at 27%, supporting $200M in share repurchases.

• Total customers grew 9% year-over-year to over 1.7 million, with 1,137 customers spending over $300K annually.

• International revenue grew 13% year-over-year, representing 29% of total revenue, with Asia-Pacific as the fastest-growing region.

• Launched new AI-powered IAM features and expanded board leadership, including James Beer as Board Chair and Mike Rosenbaum joining.

Financial highlights

• Subscription revenue was $784M–$784.4M, up 9% year-over-year, accounting for 98% of total revenue.

• Non-GAAP gross margin was 82.0%; non-GAAP operating income reached $239M; non-GAAP diluted EPS was $0.92, GAAP diluted EPS was $0.30.

• Free cash flow for Q2 was $217.6M–$218M (27% margin); cash and equivalents totaled $1.1B with no debt.

• Billings increased 13% year-over-year to $818M, with a 1% FX tailwind.

• GAAP operating margin was 8.1%.

Outlook and guidance

• Q3 FY26 revenue expected at $804M–$808M (7% YoY growth); FY26 revenue guidance raised to $3.189B–$3.201B (7% YoY growth).

• Q3 billings guidance: $785M–$795M (5% YoY growth); FY26 billings: $3.325B–$3.355B (7% YoY growth).

• Non-GAAP gross margin guidance for FY26: 81.0%–82.0%; non-GAAP operating margin: 28.6%–29.6%.

• IAM expected to represent a low double-digit percentage of the subscription book by year-end.

• FX impact on revenue growth expected to be neutral.