DocuSign Shares Rise 4.7% Post Q2 Earnings & Revenue Beat

DocuSign, Inc. DOCU reported impressive second-quarter fiscal 2026 results, wherein earnings per share (EPS) and revenues surpassed the Zacks Consensus Estimate. In response to the better-than-expected results, the company’s stock has rallied 4.7% since the earnings release on Sept. 4.Image Source: Zacks Investment ResearchDOCU’s EPS (excluding 62 cents from non-recurring items) was 92 cents, which topped the Zacks Consensus Estimate by 9.5% but decreased 5.2% from the year-ago quarter. Total revenues of $800.6 million beat the consensus mark by 2.8% and rose 8.8% from the second quarter of fiscal 2025.The company’s shares have rallied 42.5% in the past year compared with the industry’s 45.3% rise and the Zacks S&P 500’s 20.6% growth.Image Source: Zacks Investment ResearchDOCU’s Segmental RevenuesSubscription revenues totaled $784.4 million, increasing 9.3% year over year. The figure beat our estimate of $760.2 million. Professional services and other revenues of $16.25 million fell 12.9% from the year-ago quarter, beating our expectation of $17.5 million. Billings amounted to $818 million, up 13% from the year-ago quarter. The figure failed to meet our anticipation of $764.5 million.The non-GAAP gross margin was 82%, missing our estimate of 83.1%. The non-GAAP gross profit of $656.9 million grew 8.6% year over year and outpaced our expectation of $630.7 million. The non-GAAP operating margin was 29.8%, increasing 240 basis points from the year-ago quarter. It beat our estimate of 27.3%.Balance Sheet & Cash Flow of DocuSignDocuSign exited the second quarter of fiscal 2026 with cash and cash equivalents of $600 million compared with $648.6 million at the end of the second quarter of fiscal 2025. Net cash generated by operating activities was $246.1 million for the reported quarter. Free cash flow generated was $217.6 million.DOCU’s Q3 & FY26 GuidanceFor the third quarter of fiscal 2026, the company expects revenues between $804 million and $808 million.DOCU anticipates subscription revenues in the range of $786-$790 million and billing revenues between $785 million and $795 million. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 80.3-81.3% and 28-29%, respectively.For fiscal 2026, the company expects revenues between $3.189 billion and $3.201 billion. The Zacks Consensus Estimate for the same is pegged at $3.16 billion.DOCU anticipates subscription revenues between $3.12 billion and $3.13 billion and billings between $3.325 billion and $3.355 billion. The non-GAAP gross margin and the non-GAAP operating margin are expected to be 81-82% and 28.6-29.6%, respectively.Currently, DocuSign carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotFiserv, Inc. FI reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.FI’s adjusted EPS of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion lagged the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.The Interpublic Group of Companies, Inc. IPG reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis Report Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks