Docusign (DOCU) Is About to Report Q1 Earnings. Here’s What to Expect

E-signature and digital agreement management expert Docusign (DOCU) is scheduled to announce its results for the first quarter of Fiscal 2026 after the market closes on Thursday, June 5. DOCU stock has rallied 63% over the past year but is nearly flat on a year-to-date basis. The company’s improved financials and traction for its artificial intelligence (AI)-powered Intelligent Agreement Management (IAM) offering have improved investor sentiment. However, macro pressures and competition could impact growth. Wall Street expects Docusign to report earnings per share (EPS) of $0.81 for Q1 FY26, reflecting a 1.2% year-over-year decline. Revenue is estimated to grow more than 5% to about $748 million.

According to Main Street Data, Docusign’s billings growth has accelerated in recent quarters. In Q4 FY25, billings grew about 11% to $923 million.

RBC Capital’s Views Ahead of Docusign’s Q1 Earnings

Heading into Q1 FY26 results, RBC Capital analyst Rishi Jaluria believes that the risk/reward is balanced for DG stock. Based on conversations, the analyst noted that investors appear to have grown more interested in owning DocuSign on the thesis of a generally better economy, and see potential for low double-digit growth in FY26.

Jaluria views the case for acceleration to be based on IAM gaining real traction, among other potential drivers. At the Docusign Momentum event, the company mentioned that about 10,000 customers have purchased IAM since its launch. Meanwhile, the analyst expects Docusign’s Q1 FY26 earnings call to focus on the two major themes in their go-to-market strategy: 1) maximizing self-service capabilities, and 2) driving direct sales and partner ecosystems to higher valued accounts.

While Jaluria noted healthy IAM adoption metrics, he is still in “wait and see mode” as the product is in its early innings. Overall, Jaluria expects a solid beat on the Q1 FY26 top and bottom lines. He expects initial guidance to be in line with consensus, but upward revisions could become possible if IAM shows momentum.

Options Traders Anticipate a Notable Move on Docusign’s Q1 Earnings

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting about an 11% move in either direction in DOCU stock in reaction to Q1 FY26 results.

Is DOCU a Good Stock to Buy?

Overall, Wall Street has a Hold consensus rating on Docusign stock based on four Buys, 12 Holds, and one Sell recommendation. The average DOCU stock price target of $92.71 indicates a modest upside potential of about 4% from current levels.

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