What is Zacks Research’s Estimate for Docusign Q3 Earnings?

Docusign Inc. (NASDAQ:DOCU) – Zacks Research dropped their Q3 2027 earnings estimates for shares of Docusign in a report released on Thursday, June 25th. Zacks Research analyst Team now expects that the company will post earnings of $0.41 per share for the quarter, down from their previous estimate of $0.42. The consensus estimate for Docusign’s current full-year earnings is $1.97 per share. Zacks Research also issued estimates for Docusign’s FY2027 earnings at $1.69 EPS, Q1 2028 earnings at $0.47 EPS, Q2 2028 earnings at $0.28 EPS, Q3 2028 earnings at $0.38 EPS, Q4 2028 earnings at $0.62 EPS, FY2028 earnings at $1.76 EPS, Q1 2029 earnings at $0.73 EPS and FY2029 earnings at $1.35 EPS.

Other equities analysts have also issued research reports about the company. Needham & Company LLC reiterated a “hold” rating on shares of Docusign in a research note on Friday, June 5th. JPMorgan Chase & Co. reduced their price target on Docusign from $78.00 to $65.00 and set a “neutral” rating for the company in a research note on Wednesday, March 18th. Wall Street Zen raised Docusign from a “buy” rating to a “strong-buy” rating in a report on Saturday, June 13th. Wells Fargo & Company lowered their price objective on Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Friday, June 5th. Finally, Robert W. Baird dropped their target price on Docusign from $75.00 to $55.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. Three investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $60.27.

Docusign Stock Down 0.4%

Shares of NASDAQ:DOCU opened at $45.04 on Tuesday. Docusign has a 12-month low of $40.16 and a 12-month high of $86.65. The stock has a market cap of $8.60 billion, a PE ratio of 29.25, a P/E/G ratio of 1.37 and a beta of 0.92. The business has a 50 day moving average of $46.99 and a 200-day moving average of $51.45.

Docusign (NASDAQ:DOCU) last released its quarterly earnings results on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, beating the consensus estimate of $0.99 by $0.10. The firm had revenue of $830.24 million for the quarter, compared to analysts’ expectations of $824.71 million. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The business’s revenue was up 8.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.90 EPS.

Institutional Trading of Docusign

Several large investors have recently modified their holdings of DOCU. Nordea Investment Management AB increased its stake in shares of Docusign by 3.8% in the 4th quarter. Nordea Investment Management AB now owns 1,198,634 shares of the company’s stock valued at $82,502,000 after purchasing an additional 43,810 shares during the last quarter. Step Capital Management Pte. Ltd. bought a new stake in shares of Docusign during the 4th quarter worth $2,052,000. Retirement Systems of Alabama boosted its stake in Docusign by 4.9% in the fourth quarter. Retirement Systems of Alabama now owns 544,473 shares of the company’s stock valued at $37,242,000 after buying an additional 25,367 shares in the last quarter. South Dakota Investment Council boosted its stake in Docusign by 140.6% in the third quarter. South Dakota Investment Council now owns 53,373 shares of the company’s stock valued at $3,848,000 after buying an additional 31,192 shares in the last quarter. Finally, Munich Reinsurance Co Stock Corp in Munich bought a new position in Docusign in the third quarter valued at about $17,614,000. 77.64% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Docusign

In other news, Director Mary Agnes Wilderotter sold 3,000 shares of Docusign stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $48.15, for a total value of $144,450.00. Following the completion of the sale, the director directly owned 59,803 shares in the company, valued at approximately $2,879,514.45. The trade was a 4.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Allan C. Thygesen sold 26,250 shares of the business’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $47.78, for a total value of $1,254,225.00. Following the completion of the sale, the chief executive officer owned 152,237 shares of the company’s stock, valued at approximately $7,273,883.86. This trade represents a 14.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 64,695 shares of company stock valued at $3,006,682. 0.59% of the stock is currently owned by company insiders.

Docusign declared that its Board of Directors has approved a stock buyback program on Tuesday, March 17th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to reacquire up to 21% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Key Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for Docusign to $1.69 from $1.53, suggesting improved profitability expectations in the next fiscal year.
• Positive Sentiment: The firm also lifted its Q1 2028 EPS estimate to $0.47 from $0.45 and Q4 2028 EPS to $0.62 from $0.59, indicating some confidence in Docusign’s longer-term earnings trajectory.
• Neutral Sentiment: Zacks Research’s broader forecast set still implies steady earnings growth over the next several years, with FY2028 EPS projected at $1.76 and FY2029 EPS at $1.35. Zacks Research Has Positive Outlook for Docusign Q4 Earnings
• Negative Sentiment: Despite the upgrades, Zacks cut estimates for several periods, including Q2 2028 EPS to $0.28 from $0.43, Q3 2028 EPS to $0.38 from $0.41, FY2028 EPS to $1.76 from $1.89, and FY2029 EPS to $1.35 from $2.10.

Docusign Company Profile

DocuSign, Inc (NASDAQ: DOCU) is a leading provider of electronic signature and digital transaction management solutions. The company’s flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign’s Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign’s platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.