/AI%20(artificial%20intelligence)/Artificial%20Intelligence%20technology%20concept%20by%20NicoEINino%20via%20Shutterstock.jpg)
Global trade tensions are heating up, with tariffs shaking markets and weighing heavily on consumer and business sentiment. Recession fears are mounting as government policy uncertainty intensifies, driven by tariffs and Department of Government Efficiency (DOGE) spending cuts. And Wall Street is already feeling the squeeze, with key indexes sliding into correction territory.
Against this backdrop, one under-the-radar stock that remains resilient is DocuSign (DOCU). CEO Allan Thygesen stated that February transaction volumes aligned with company expectations, showing no major impact from recent market volatility. Demand remained steady, and the company’s latest earnings report exceeded Wall Street forecasts, driven by the growing adoption of its artificial intelligence (AI)-powered agreement technology. With billings guidance surpassing estimates, DocuSign continues to build momentum, positioning itself as a strong investment amid recession concerns.
About DocuSign Stock
California-based DocuSign (DOCU) has established itself as a leader in electronic signatures and agreement technologies. With a market capitalization of approximately $17.2 billion, its flagship product, eSignature, enables secure electronic signing, reducing paperwork and streamlining business operations. Recently, DocuSign has intensified its focus on enhancing its Intelligent Agreement Management (IAM) platform. New offerings, including DocuSign for Developers and AI-driven contract review tools, are expanding its technological reach and strengthening its market position.
The company has also accelerated its global expansion, launching the IAM platform in 14 languages, which contributed to a 28% increase in international revenue. Its robust API integrations continue to drive widespread adoption across enterprises. Over the past 52 weeks, DOCU’s stock has soared 45%, vastly outperforming the S&P 500 Index’s ($SPX) 9.6% gain.
Despite DOCU’s relative outperformance over the past year, the company still looks like a hidden gem compared to its historical levels. Trading at 23.82 times adjusted forward earnings and 5.73 times sales, well below its five-year averages of 106.86x and 13.76x, DOCU’s discounted valuation could be a golden opportunity for investors eyeing significant long-term growth potential.
DocuSign Surpasses on Q4 Earnings
After the company dropped its strong fiscal 2025 fourth-quarter earnings results on March 13, shares of the electronic document management specialist popped more than 14% in the next trading session. Revenue came in at $776.3 million, marking a 9% increase year-over-year. The figure not only surpassed the $761.6 million consensus estimate but also blew past the company’s prior forecast range of $758 million to $762 million, issued in early December.
DocuSign reported adjusted EPS of $0.86 for the final quarter of fiscal 2025. This represented an improvement from the prior-year quarter’s adjusted earnings of $0.76 per share. Like revenue, the bottom-line figure also exceeded the Wall Street forecast of $0.85. DocuSign‘s Subscription revenue totaled $757.8 million, reflecting 8.9% annual growth.
Billings climbed 11% year-over-year to $923.2 million, while the company maintained an impressive non-GAAP gross margin of 82.3%. Plus, free cash flow surged to $279.6 million, outpacing last year’s $248.6 million.
For the first quarter of its fiscal 2026, management expects revenue between $745 million and $749 million, while subscription revenue is forecast to land between $729 million and $733 million. Full-year fiscal 2026 revenue is projected to arrive between $3.13 billion and $3.14 billion, reflecting an increase from the $2.98 billion achieved in fiscal 2025.
What Do Analysts Expect for DocuSign Stock?
William Blair has upgraded DocuSign to “Outperform,” citing confidence in the IAM platform’s ability to drive growth. Analysts anticipate significant upsell opportunities and enhanced customer relationships, extending beyond DocuSign's core e-signature business. Meanwhile, Citigroup upgraded its price target from $113 to $115, affirming a “Buy” rating.
Overall, Wall Street is somewhat optimistic about DOCU, with a consensus rating of “Moderate Buy.” Among 17 analysts covering the stock, five recommend a "Strong Buy," 11 suggest “Hold,” and one advises “Strong Sell.” The average price target of $95.57 represents potential upside of 11.5%, while JMP Securities’ Street-high target of $124 suggests that the stock can climb as much as 45% from the current price level.
