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Home » DocuSign stock tanks 18% after company cuts billings outlook
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DocuSign stock tanks 18% after company cuts billings outlook

HarishBy HarishJune 6, 2025No Comments2 Mins Read
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The Docusign Inc. application for download in the Apple App Store on a smartphone arranged in Dobbs Ferry, New York, U.S., on Thursday, April 1, 2021.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Shares of DocuSign tanked 18% in trading on Friday, a day after the e-signature provider reported stronger-than-expected earnings but slashed its full-year billings outlook.

Here’s how the company performed in the fiscal first quarter, compared with estimates from analysts polled by LSEG:

Earnings per share: 90 cents, adjusted, vs. 81 cents expectedRevenue: $764 million vs. $748 million expected

Billings, a closely-watched sales metric, came in at $739.6 million in the fiscal first quarter, which ended April 30. That was lower than the $746 million expected by analysts, according to StreetAccount. It also fell short of the company’s own forecast, which guided for billings between $741 million and $751 million.

For the current fiscal year, DocuSign said it expects billings of $3.28 billion to $3.34 billion, down from a range of $3.3 billion to $3.35 billion.

In the first quarter of DocuSign’s 2026 fiscal year, revenue jumped 8% year over year to $764 million. Subscription revenue increased 8% from the same period a year ago to $746.2 million.

DocuSign reported net income of $72.1 million, or 34 cents per share, compared to net income of $33.8 million, or 16 cents per share, a year earlier.

For the fiscal second quarter, the company expects revenue to be between $777 million and $781 million, compared to consensus estimates of $775 million, according to LSEG. For the full fiscal year, DocuSign projected revenue of $3.15 billion to $3.16 billion. Analysts were expecting $3.14 billion, according to LSEG.

The company also announced an additional $1 billion stock buyback, taking its share repurchase plan to $1.4 billion.

DocuSign shares are down more than 16% year to date.

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