DocuSign Reports Strong Q2 Results with Revenue Growth, Increased Free Cash Flow and Raised Guidance
DocuSign reported strong second-quarter results for fiscal year 2027, driven by a 9% increase in revenue to $876 million compared to the prior year. Non-GAAP operating income rose 16% to $277 million, while free cash flow surged over 35% to $296 million. The company also raised its full-year ARR growth outlook to between 8.5% and 9.0%, up from previous guidance of 8%. IAM adoption accelerated significantly during the quarter, reaching 15.1% of total annual recurring revenue (ARR), compared to 12.6% in Q1. DocuSign also expanded its AI features and integrations as part of a broader platform strategy that CEO Allan Thygesen described as working effectively. The company ended the quarter with nearly $1 billion in cash, no debt, and had repurchased $307 million worth of stock under an ongoing buyback program. It now has $2.1 billion remaining for future share repurchases. The firm raised its fiscal 2027 revenue outlook to between $3.499 billion and $3.507 billion, reflecting a projected growth rate of around 9% at the midpoint.
Tickers: $DOCU
Topics: AI integration buybacks earnings IAM adoption revenue growth