DocuSign (DOCU) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a pivotal year with the Intelligent Agreement Management (IAM) platform driving growth, reaching over $350 million in ARR and representing 10.8% of total ARR after just 18 months.

• Q4 revenue reached $837 million, up 8% year-over-year, with billings surpassing $1 billion for the first time, and ARR ending at $3.3 billion, also up 8% year-over-year.

• Non-GAAP operating margin exceeded 30% for the first time, and free cash flow surpassed $1 billion for the year, with Q4 free cash flow margin at 42%.

• The company expanded its share repurchase program by $2 billion to $2.6 billion, repurchasing $869 million in stock during the year.

• Strategic priorities for fiscal 2027 include scaling IAM, expanding AI capabilities, and leveraging strong cash flow for share repurchases.

Financial highlights

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

• Fiscal 2026 total revenue: $3.2 billion (+8% YoY); subscription revenue: $3.2 billion (+9% YoY); billings: $3.4 billion (+10% YoY); ARR: $3.3 billion (+8% YoY).

• Q4 non-GAAP operating income: $247 million (29.5% margin); full-year non-GAAP operating income: $968 million (30% margin).

• Q4 free cash flow: $350 million (42% margin), up 25% YoY; full-year free cash flow: $1.06 billion (33% margin).

• Q4 non-GAAP diluted EPS: $1.01 (up from $0.86); full-year non-GAAP diluted EPS: $3.84 (up from $3.55).

Outlook and guidance

• Fiscal 2027 ARR expected to grow 8.25%-8.75% YoY, reaching $3.551 billion at midpoint; IAM projected to represent 18% of total ARR, exceeding $600 million.

• Fiscal 2027 revenue guidance: $3.484-$3.496 billion (+8% YoY midpoint); Q1 revenue: $822-$826 million (+8% YoY midpoint).

• Non-GAAP gross margin guidance: 81.5%-82.0% for fiscal 2027; operating margin: 30.0%-30.5%.

• Non-GAAP fully diluted shares outstanding expected to decline to 190-195 million for fiscal 2027.

• Revenue guidance excludes positive FX impact of 1.4-1.6 percentage points.