DocuSign beats on Q2 revenue and EPS and raises its FY2027 outlook as IAM reaches 15.1% of ARR

DocuSign reported fiscal second-quarter 2027 revenue of $875.7 million, up 9% year over year and ahead of a $867.2 million estimate, with non-GAAP diluted EPS of $1.16 against a consensus near $1.08. The company raised full-year revenue guidance to $3.499 billion to $3.507 billion from $3.490 billion to $3.502 billion and lifted its ARR growth view to 8.5% to 9.0%. Its Intelligent Agreement Management platform reached 15.1% of total ARR, up from 12.6% a quarter earlier, and is guided to 18% to 19% by year end. Shares rose more than 8% after hours.

DOCU reported fiscal second-quarter 2027 revenue of $875.7 million, up 9% year over year including a 1.3% currency benefit, against a $867.2 million estimate, and delivered non-GAAP diluted EPS of $1.16 versus a consensus near $1.08 and $0.92 a year earlier. GAAP diluted EPS was $0.40. Non-GAAP operating margin was 31.6% and GAAP operating margin 13.4%, with free cash flow of $295.8 million on operating cash flow of $334.5 million, a 34% free cash flow margin.

The company raised its full-year outlook rather than reaffirming it. Fiscal 2027 revenue guidance moved to $3.499 billion to $3.507 billion from the $3.490 billion to $3.502 billion range set a quarter earlier, roughly 9% growth at the midpoint including about a point of currency tailwind, and DocuSign lifted its ARR growth view to 8.5% to 9.0%. Third-quarter revenue is guided to $886 million to $890 million, against an analyst estimate near $888.6 million.

The number management wants investors watching is platform adoption. Intelligent Agreement Management, the AI-native contract platform, reached 15.1% of total ARR as of July 31, up from 12.6% three months earlier, and is guided to 18% to 19% of total ARR by the end of fiscal 2027. Chief executive Allan Thygesen said the company's "AI agents are now securely executing contract workflows end-to-end, and the IAM platform also ingested a record volume of agreements." DocuSign also repurchased $306.5 million of stock in the quarter and ended with $973.1 million in cash and investments.

Shares closed the regular session at $65.97, up 0.9%, then rose more than 8% in after-hours trading as the guidance raise landed, though earlier extended-hours snapshots showed a smaller move near 4% before it widened . The open question is durability rather than the print: 9% growth is respectable but not transformative for a company whose valuation depends on AI reaccelerating it. Watch whether IAM tracks toward the 18% to 19% ARR share by year end, since that ramp is what would turn a single-digit grower into something faster.

DocuSign beats on Q2 revenue and EPS and raises its FY2027 outlook as IAM reaches 15.1% of ARR

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