Docusign, Inc. research snapshot
DOCU AI stock analysis currently reads Docusign as a durable, cash-generative agreement platform that is extending its e-signature franchise into AI-native Intelligent Agreement Management. The stock closed at $54.83 on July 31, 2026, for a market value of about $10.47 billion based on 190.94 million shares, after a roughly 20% July advance that carried DOCU back above its 200-day average. Q1 fiscal 2027 revenue was $830.2 million, up 9% year over year, while IAM represented 12.6% of total ARR and 40,000 companies had invested in the platform. The main question for the DOCU AI stock forecast is whether IAM can reaccelerate an otherwise mature 8% to 9% growth profile, and whether the higher post-rally valuation leaves room for error if growth, competition, or stock-based compensation do not cooperate.
Current price
$54.83 close on July 31, 2026
Market cap
$10.47 billion
AI score
65 / 100
Rating
Durable agreement software and strong cash generation with improving IAM adoption, though the July rally has lifted the multiple and growth still needs to reaccelerate to justify the price
Trend status
Constructive after DOCU reclaimed the 200-day average in late July and printed a recovery high near $59, though the stock has faded to the $54.83 close and must hold the reclaimed zone
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Docusign sells subscription software for e-signature, agreement workflows, identity, contract intelligence, and AI-assisted agreement management to consumers, businesses, and large enterprises. Q1 fiscal 2027 revenue grew 9% year over year and subscription revenue is about 98% of the mix. | High |
| Moat | Trust, compliance, brand recognition, workflow integrations, agreement data, and switching costs create a real moat. It is narrower than a network-effect monopoly because customers can adopt Adobe, Microsoft, Salesforce, or internal tools. | Medium-high |
| Management | CEO Allan Thygesen is directing the IAM transition, and incoming Chief Product Officer Graham Sheldon brings agentic automation experience from UiPath and Microsoft. Docusign repurchased a record $317.5 million of stock in Q1 fiscal 2027, but stock-based compensation remains material and must be judged against per-share earnings growth. | Medium |
| Financial trend | FY2026 revenue reached $3.22 billion, gross margin was about 79%, operating income was $298.6 million, and free cash flow was about $1.06 billion. Q1 FY2027 revenue grew 9% and free cash flow rose to $289.4 million with a $317.5 million buyback. | High |
| Valuation | At $54.83, DOCU screened near 35.6x trailing earnings, 3.19x sales, 9.35x free cash flow, and 13.3x EV/EBITDA on StockAnalysis data as of early August 2026. The forward PE near 11.8x reflects much higher non-GAAP EPS, while the trailing GAAP multiple is elevated after the July rally. | High |
| Technical trend | Price is above the 50-day average near $48.61 and marginally above the 200-day average near $54.68. RSI near 59.9 shows positive momentum without an overbought extreme after a roughly 20% July advance. | Medium |
| Risk level | The main risks are slow subscription growth, IAM monetization failure, AI commoditization, competition from Adobe and bundled platforms, stock compensation, privacy and security incidents, short interest near 8.8% of shares, and valuation compression. | Medium-high |
| AI confidence | AI has high confidence describing Docusign's reported results and product strategy, but only medium confidence projecting IAM adoption, long-term growth, or a future share price. | High data confidence |
| Investment certainty | DOCU is a credible quality and cash flow story with improving momentum, but it is not a high-certainty bargain at the current multiple unless IAM creates a clearer growth reacceleration or the price offers a wider margin of safety. | Medium |
DOCU AI stock forecast
The DOCU AI stock forecast uses the $54.83 July 31, 2026 close, trailing GAAP diluted EPS of about $1.54, current shares of about 190.94 million, and a three-year earnings multiple framework. The refreshed model output is about $68 to $80 in the bullish case, $45 to $54 in the base case, and $23 to $29 in the bearish case. These are scenario outputs, not price promises, and they assume GAAP EPS compounding toward fiscal 2029 before applying an earnings multiple; they exclude changes in share count, taxes, buybacks, and the valuation multiple outside the stated assumptions.
$68 to $80
More likely if IAM adoption converts into ARR growth above the 8.25% to 8.75% outlook, revenue growth reaccelerates toward the low teens, gross margin stays near 80%, free cash flow remains above 30% of revenue, buybacks keep exceeding dilution, and investors support a high-20s earnings multiple.
$45 to $54
More likely if Docusign remains a steady 8% to 10% grower, IAM grows without changing the company's overall trajectory, free cash flow stays strong, and the market values the business near a low-20s earnings multiple as the software sector normalizes.
$23 to $29
More likely if IAM fails to lift growth, e-signature pricing faces sustained pressure, customers consolidate vendors, AI features become cheaper to replicate, or the market applies a mid-teens earnings multiple to a slower-growth subscription business.
DOCU AI technical analysis
DOCU AI technical analysis turned constructive as of the August 3, 2026 data cutoff. StockAnalysis showed a $54.83 close on July 31, a 50-day moving average near $48.61, a 200-day moving average near $54.68, RSI near 59.94, and average 20-day volume of about 3.20 million shares. DOCU rallied about 20% in July, reclaimed the 200-day average, and printed a recovery high near $59.13 on July 29 before fading into the July 31 close. Recent price history places support around $50 to $51 and resistance near the $56 to $59 area.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $54.83 | July 31, 2026 close used for market cap and valuation math. |
| Immediate support | $52.50 to $53 | The July 30 and July 31 lows near $52.70 to $52.90 are the first test. A hold keeps the reclaimed uptrend intact. |
| Deeper support | $50 to $51 | The July 21 and July 24 closes near $50.44 to $50.74 and the 50-day average near $48.61 create the next support band. |
| Near resistance | $56 to $57.30 | The July 28 close near $55.97 and the June 1 high near $57.29 form the first overhead zone that must clear for continuation. |
| Major resistance | $58 to $59.20 | The July 29 recovery high near $59.13 is the current pivot. A break above it would open the next leg higher. |
| Moving averages | 50-day about $48.61; 200-day about $54.68 | Price above both averages after the late-July reclaim signals a shift from downtrend repair to a constructive long-term setup. |
| Momentum | RSI about 59.94 | Momentum is positive but not at an extreme reading based on the August 2 StockAnalysis update. |
| Volume | 20-day average about 3.20 million shares | The late-July advance printed above-average volume, but the July 30 drop also saw heavy volume, so follow-through matters. |
| Volatility | 52-week price change about -29.67%; beta 0.87 | The 52-week drawdown and the July 29 to July 30 swing of about 6.7% show repricing risk remains high. |
| Invalidation | Close below $50 | A decisive close below the $50 to $51 support band would undercut the 200-day reclaim. A break below the July 23 low near $46.57 would signal a failed rally. |
DOCU AI trading strategy
The DOCU AI trading strategy below is a rules-based research framework, not personal advice. It combines the reclaimed $50 to $54 area with IAM adoption, ARR growth, retention, free cash flow, competition, and stock-based compensation.
Watch for DOCU to hold above the $52.50 to $53 area, clear $56 to $57.30 on volume, and then take out the $59.13 recovery high while the September 3 earnings update confirms IAM adoption and revenue growth above the current outlook.
A failed breakout followed by a close below $50 to $51 reduces setup confidence. Treat a close below $46.57 as a broader invalidation unless fundamentals improve materially.
If DOCU pulls back to $50 to $51 or the 50-day average near $48.61 without a weaker IAM or ARR outlook, compare the price with trailing free cash flow, net cash, customer retention, and the forward earnings multiple before treating the pullback as a valuation reset.
Do not assume a lower price is attractive if IAM adoption stalls, net retention declines, stock compensation stays high, or Adobe and bundled competitors take share.
Track ARR growth, IAM ARR mix, total and enterprise customers, net retention, RPO, gross margin, free cash flow margin, stock-based compensation, diluted shares, repurchases, and the FY2027 revenue outlook, with the next catalyst on September 3, 2026.
Keep the framework conditional because DOCU is a mature software company attempting a product-led growth extension, not a guaranteed AI compounder.
Investment research summary
Customers pay Docusign to move agreements from preparation to signature, storage, analysis, and workflow execution with less friction and stronger auditability. Subscription revenue represented about 98% of FY2026 revenue, which gives the model recurring economics but leaves growth tied to seat expansion, usage, and new product adoption.
Docusign combines brand trust, legal and compliance infrastructure, more than 1,100 integrations, a large agreement corpus, and embedded workflows. These advantages raise the cost of switching, but the moat can narrow when Adobe, Microsoft, Salesforce, LLM providers, or internal tools bundle similar agreement features.
The thesis fails if IAM adoption is mostly feature usage rather than durable paid expansion, e-signature becomes a bundled commodity, security or reliability problems damage trust, customers consolidate vendors, or stock-based compensation absorbs too much of the cash flow shareholders see as value creation.
CEO Allan Thygesen is leading the transition toward IAM and AI-assisted agreement workflows, and incoming Chief Product Officer Graham Sheldon brings agentic automation experience from UiPath and Microsoft. Docusign repurchased a record $317.5 million of stock in Q1 fiscal 2027 and held about $1.0 billion of cash and investments at quarter end. The counterpoint is that FY2026 stock-based compensation was about $622 million, so buybacks should be judged against diluted shares and per-share results.
Digital agreements, workflow automation, identity, and AI-assisted contract operations are long-term software trends. Docusign is extending its agreement layer through Iris, Agent Studio, and partnerships with Perplexity, Slack, and legal AI platforms, yet the market is moving toward broader systems of action where CRM, ERP, productivity, and AI platforms can make agreement tools less standalone.
The current price reflects a profitable subscription business with net cash and improving technical momentum, but it also assumes that 8% to 9% growth can persist and that IAM creates optionality. The refreshed three-year model leaves base-case value around $45 to $54, below the $54.83 close, so the margin of safety depends on faster IAM monetization, continued buybacks that exceed dilution, or a lower entry valuation.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Current price | $54.83 close on July 31, 2026 | StockAnalysis DOCU statistics | August 2, 2026 |
| Market cap and shares | $10.47 billion market cap and 190.94 million shares outstanding | StockAnalysis DOCU statistics | August 2, 2026 |
| Market cap cross-check | $54.83 multiplied by 190.94 million shares equals about $10.47 billion, matching the ChartExchange market cap of $10.47 billion | StockAnalysis and ChartExchange DOCU quote data | July 31, 2026 |
| Q1 FY2027 revenue and profit | $830.2 million revenue, $0.40 GAAP diluted EPS, and $1.09 non-GAAP diluted EPS for the quarter ended April 30, 2026 | Docusign Q1 FY2027 financial results | August 3, 2026 |
| IAM adoption | IAM represented 12.6% of total ARR and 40,000 companies had invested in IAM as of April 30, 2026 | Docusign Q1 FY2027 results | August 3, 2026 |
| Q1 FY2027 cash flow and buybacks | $321.7 million operating cash flow, $289.4 million free cash flow, and $317.5 million of share repurchases | Docusign Q1 FY2027 financial results | August 3, 2026 |
| FY2026 financial trend | $3.2195 billion revenue, $309.1 million net income, $298.6 million operating income, and $1.059 billion free cash flow | Docusign 2026 Form 10-K and StockAnalysis financials | August 3, 2026 |
| Recurring revenue mix and customers | Subscription revenue was $3.151 billion, or about 98% of FY2026 revenue; TTM customers were about 1.87 million and enterprise and commercial customers about 284,000 | SEC 2026 Form 10-K and StockAnalysis metrics | August 2, 2026 |
| TTM valuation at current price | 35.61x trailing PE, 11.79x forward PE, 3.19x price to sales, 9.35x price to free cash flow, 13.30x EV/EBITDA, and $1.54 TTM EPS | StockAnalysis DOCU statistics | August 2, 2026 |
| Balance sheet | $814.18 million cash, $183.33 million debt, and net cash of $630.85 million, or $3.30 per share | StockAnalysis DOCU statistics | August 2, 2026 |
| FY2027 company outlook | $3.490 billion to $3.502 billion revenue, 8.25% to 8.75% ARR growth, 81.5% to 82.0% non-GAAP gross margin, and 30.5% to 31.0% non-GAAP operating margin | Docusign Q1 FY2027 financial results | August 3, 2026 |
| Analyst consensus | Hold consensus with an average price target of $59.33 across 22 analysts, implying about 8% upside from the July 31 close | StockAnalysis DOCU forecast | August 2, 2026 |
| Technical trend | 50-day moving average $48.61, 200-day moving average $54.68, RSI 59.94, and 20-day average volume 3.20 million shares | StockAnalysis DOCU statistics | August 2, 2026 |
| Short interest | 16.75 million shares sold short, or 8.77% of shares outstanding, up from 14.53 million in the prior month | StockAnalysis DOCU statistics | August 2, 2026 |
| Recent product and partnership news | Docusign made its IAM platform available for Perplexity Computer on June 24, 2026 and launched a Slack app for agreement intelligence on June 18, 2026 | PRNewswire | August 3, 2026 |
| Competition and risk context | Adobe is the primary global e-signature competitor; Docusign also names bundled software, contract lifecycle platforms, LLM providers, data platforms, and internal customer tools as competitive threats | Docusign 2026 Form 10-K | August 3, 2026 |
This Docusign stock analysis page is an informational research tool only. It is not investment advice, a recommendation, or a guarantee of future returns. Forecast ranges are scenarios based on available public data as of August 3, 2026 and may be wrong if Docusign fundamentals, IAM adoption, competition, free cash flow, market multiples, interest rates, or investor sentiment change.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
