DocuSign (DOCU) Stock Forecast & Price Target

Docusign is attractive because it delivered better-than-expected F2Q27 results, with revenue of $876M, non-GAAP EPS of $1.16, and a 31.6% operating margin, while also generating strong operating cash flow of $334.5M and free cash flow of $295.8M. Its outlook is strengthened by IAM’s rapid traction at about $529M, or 15.1% of total ARR, plus rising customer spending, 103% net retention, and 1,299 customers above $300,000 in ACV. The company’s leadership in e-signatures, expansion into the broader Agreement Cloud, and AI engine Iris trained on over 300 million private consented agreements support a durable competitive edge and improving monetization.

Docusign is viewed negatively because the company faces a long path to turnaround, with sales execution still needing to shift from inbound demand to proactive demand generation while broader agreement cloud adoption and international traction remain limited. Too many execution issues have also persisted, including high sales person turnover, leadership overhauls, and a restructuring that reduced the workforce by 9%, suggesting stabilization is not yet complete. Investor skepticism is reinforced by a historical credibility gap, as the company guided billings down a few times in FY23, missed its own billings guidance, and again missed quarterly guidance and lowered annual billings guidance in FY26.