DOCU Stock On Track For Fourth Straight Loss – Analyst Says Double-Digit Growth Remains A ‘Long-Term Aspiration’

• Citi stated that the first quarter performance of DocuSign was ‘solid’ but calculated billings growth of 3% year-over-year was ‘weak.’
• Wells Fargo called the company's Q1 results mixed, noting only modest growth improvement with little meaningful change overall.
• For the fiscal year 2027, the company guided revenue to $3.49 billion to $3.50 billion, about 9% growth at the midpoint. 

Shares of DocuSign, Inc. (DOCU) were on track to extend three sessions of losses on Friday after the e-signature and agreement management platform company reported first-quarter 2027 results that beat profit expectations but offered a guidance range that left Wall Street analysts wanting more.

DocuSign reported first-quarter revenue of $830.2 million, beating analysts’ expectations of about $824 million, while adjusted earnings of $1.09 per share also surpassed Wall Street estimates of $0.99.

While retail traders were focused on growing Intelligent Agreement Management (IAM) adoption, Wall Street analysts remained cautious if those gains could translate into sustained growth.

At the time of writing, DOCU stock was down 5% premarket on Friday. For the week so far, it is down over 11%

Wall Street’s Take On DOCU

Analysts broadly viewed DocuSign’s quarter as solid, but concerns around billing growth and the pace of revenue acceleration overshadowed the earnings beat. 

Jefferies hiked the price target of DocuSign to $50 from $45 and kept a ‘Hold’ rating on the stock, according to TheFly. 

The firm noted that even though the company reported a ‘steady’ quarter with revenue beat and guidance raise, the company’s return to double-digit growth remains a ‘long-term aspiration’ as the fiscal 2027 revenue outlook implies growth of 7.1% to 7.5%, excluding currency.  

Citi analyst Tyler Radke also raised the price target on DocuSign to $54 from $50 and kept a ‘Neutral’ rating on the stock. The firm stated that the first quarter performance of the company was ‘solid’ but calculated billings growth of 3% year-over-year was ‘weak.’

Wells Fargo cut its price target on DocuSign to $55 from $60 while maintaining an ‘Equal Weight’ rating. 

The firm called the company's Q1 results mixed, noting only modest growth improvement with little meaningful change overall. Wells Fargo expects investors to keep debating whether the second half of the year offers room for further acceleration or if growth begins to taper as the company laps the IAM launch.

DOCU’s Fiscal 2027 Guidance

For the fiscal year 2027, management guided revenue to $3.49 billion to $3.50 billion, about 9% growth at the midpoint and the annual recurring revenue growth is expected at 8.25% to 8.75% for the same period.

For the second quarter, DocuSign expects the revenue growth of $865 million to $869 million, about 8% growth at the midpoint, whereas the company reported a 9% revenue growth in the first quarter.

IAM Momentum Building

The company stated that its Intelligent Agreement Management (IAM) represented 12.6% of our total Annual Recurring Revenue (ARR) as of April 30, 2026. 

In its earnings call, CEO Allan Thygesen highlighted that 40,000 customers are now investing in the IAM roadmap, calling it "continued growing demand."

The company remains on track for IAM to represent about 18% of total ARR at fiscal year-end, the management stated on an earnings call.

What Retail Thinks Of DOCU

On Stocktwits, retail sentiment surrounding the stock has remained ‘extremely bullish’ while message volumes increased to ‘extremely high’ from ‘high’ in the past 24 hours. The retail chatter on the stock skyrocketed to more than 3000% in the past 24 hours.

One user on Stocktwits said, annual recurring revenue of IAM is increasing.

DOCU stock has declined by more than 21% year-to-date.

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