DocuSign's (DOCU) solid fiscal Q4 results beat Wall Street estimates, and its fiscal 2027 guidance was nearly in-line with or slightly above consensus, RBC Capital Markets said Tuesday in a note.
Q4 revenue benefited from an 80 basis points foreign exchange tailwind and some contribution from digital add-ons launched in late fiscal 2025. Underlying organic growth was driven mainly by rising Identity and Access Management bookings and improved retention, while Q4 billings topped $1 billion for the first time, the brokerage said.
The company also raised its share purchase program by $2 billion, bringing the total remaining authorization to $2.6 billion, with $158 million already repurchased in Q1, RBC added.
DocuSign expects fiscal 2027 annual recurring revenue to grow 8.25% to 8.75% year over year to $3.551 billion, with Intelligent Agreement Management, or IAM, expected to reach 18% of total ARR by fiscal Q4, according to the note.
RBC said it is encouraged by continued early IAM traction.
The firm maintained a sector perform rating on DocuSign and lowered the price target to $55 from $70.
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