DocuSign (DOCU) Q4 2026 earnings summary

Executive summary

• Q4 revenue reached $837 million, up 8% year-over-year, with international markets contributing 30% and billings exceeding $1 billion for the first time, up 10% year-over-year.

• IAM platform established market leadership, generating over $350 million in ARR after 18 months, now representing 10.8% of total ARR, and is expected to reach 18% by end of FY27.

• Fiscal 2026 marked record non-GAAP operating margins over 30% and free cash flow over $1 billion, with Q4 free cash flow margin at 42%.

• Strategic partnerships and integrations with Microsoft Azure, Anthropic, OpenAI, and others are accelerating digital transformation and AI capabilities.

• Expanded AI-powered agreement workflow capabilities, including Agreement Desk, AI-Assisted Review, and enhanced eSignature features.

Financial highlights

• Q4 total revenue: $837 million (+8% YoY); subscription revenue: $819 million (+8% YoY); professional services: $17.9 million (-3% YoY).

• Full-year fiscal 2026 revenue: $3.2 billion (+8% YoY); subscription revenue: $3.2 billion (+9% YoY); ARR ended at $3.3 billion (+8% YoY); billings for Q4 exceeded $1 billion (+10% YoY); full-year billings: $3.4 billion (+10% YoY).

• Non-GAAP gross margin for Q4: 81.8%; for the year: 82.0%; subscription gross margin: 83.4%.

• Non-GAAP operating income for Q4: $247 million (+10% YoY); full-year: $968 million (+9% YoY); Q4 non-GAAP operating margin: 29.5%.

• Free cash flow for fiscal 2026: over $1 billion (33% margin); Q4 free cash flow: $350 million (42% margin).

• Non-GAAP diluted EPS for Q4: $1.01 (up from $0.86); GAAP diluted EPS for Q4: $0.44 (up from $0.39).

Outlook and guidance

• Fiscal 2027 ARR expected to grow 8.25%-8.75% YoY, reaching $3.551 billion at midpoint; revenue guidance: $3.484-$3.496 billion (+8% YoY).

• IAM projected to represent ~18% of total ARR by end of fiscal 2027, exceeding $600 million.

• Q1 2027 revenue guidance: $822-$826 million (+8% YoY); non-GAAP gross margin guidance for fiscal 2027: 81.5%-82.0%; operating margin: 30.0%-30.5%.

• Non-GAAP fully diluted weighted average shares outstanding for fiscal 2027: 190-195 million.

• Revenue guidance excludes positive FX impact of 1.6 percentage points for Q1 and 1.4 points for FY27.