DocuSign Stock Soars After Strong Q3 Results and Upbeat Guidance

DocuSign Stock Soars After Strong Q3 Results and Upbeat Guidance

DocuSign, Inc. (DOCU) stock surged after the company reported better-than-expected third-quarter financial results and issued fourth-quarter and fiscal 2025 revenue guidance above estimates.

The company reported third-quarter revenue of $754.8 million, up 8%, exceeding the consensus estimate of $745.26 million. Adjusted EPS for the quarter came in at 90 cents, surpassing analyst expectations of 87 cents.

DocuSign also provided upbeat guidance for the fourth quarter and fiscal 2025. The company expects fourth-quarter revenue of $758 million to $762 million, compared to analyst estimates of $755.95 million. For fiscal 2025, DocuSign forecasts revenue of $3.04 billion to $3.06 billion, above the consensus estimate of $3.03 billion.

The strong results and guidance led to a positive reaction from Wall Street analysts, who raised their price targets on the stock. RBC Capital analyst Rishi Jaluria maintained DocuSign with a Sector Perform rating and raised the price target from $57 to $90. Piper Sandler analyst Rob Owens reiterated DocuSign with a Neutral rating and raised the price target from $60 to $90. JPMorgan analyst Mark R Murphy maintained an Underweight rating on DocuSign with a price target of $70.

In addition to the strong financial results, DocuSign also highlighted the progress it is making with its Intelligent Agreement Management (IAM) platform. IAM is a cloud-based platform that helps businesses automate and manage the entire agreement lifecycle. DocuSign reported that approximately 80% of its sales representatives closed three or more IAM deals in the third quarter.

The positive news sent DocuSign stock soaring 28% to $107.00 at last check on Friday. The stock's strong performance suggests that investors are optimistic about the company's future prospects.