Docusign joins the tracked set today, three days before it reports the July quarter on 3 September. Its Rule of 40 score for the April 2026 quarter is 43.6 — a pass. Almost none of it is growth.
| 2027 Q1 | |
|---|---|
| Revenue growth YoY | +8.7% |
| Free cash flow margin | +34.9% |
| R40 | 43.6 |
Note Docusign's fiscal year ends 31 January, so its "2027 Q1" is the three months to 30 April 2026. Quarter labels here follow the fiscal year, as they do for the other January filers on this site.
Nine quarters, one shape
| Quarter | Revenue | YoY | FCF | FCF margin | R40 |
|---|---|---|---|---|---|
| 2025 Q1 | $709.6M | +7.3% | +$232.1M | +32.7% | 40.0 |
| 2025 Q2 | $736.0M | +7.0% | +$197.9M | +26.9% | 33.9 |
| 2025 Q3 | $754.8M | +7.8% | +$210.7M | +27.9% | 35.7 |
| 2025 Q4 | $776.3M | +9.0% | +$279.6M | +36.0% | 45.0 |
| 2026 Q1 | $763.7M | +7.6% | +$227.8M | +29.8% | 37.4 |
| 2026 Q2 | $800.6M | +8.8% | +$217.6M | +27.2% | 36.0 |
| 2026 Q3 | $818.4M | +8.4% | +$262.9M | +32.1% | 40.5 |
| 2026 Q4 | $836.9M | +7.8% | +$350.2M | +41.8% | 49.7 |
| 2027 Q1 | $830.2M | +8.7% | +$289.4M | +34.9% | 43.6 |
Nine quarters, and the growth column never leaves the band between +7.0% and +9.0%. The score moves anyway, from 33.9 to 49.7, and every point of that movement comes from the second column. The pattern inside it is seasonal rather than strategic: the January quarter is the collection quarter, and it produces the year's best cash margin every time — 36.0% in 2025 Q4, 41.8% in 2026 Q4. Read the score off a January quarter and Docusign looks like it is accelerating. It is not.
What holds all of this together is a gross margin that does essentially nothing. Across those nine quarters it ranges from 78.88% to 79.71% — a spread of 83 basis points over more than two years.
Where the cash goes
Docusign has had no borrowings since the January 2024 quarter, when it repaid $689.9 million of 2024 convertible senior notes. Since then the cash has gone into the share count. Repurchases were $869.1 million in fiscal 2026 and another $317.5 million in the April 2026 quarter alone, and the effect shows up in the denominator: diluted weighted-average shares fell from 214.5 million in the January 2025 quarter to 196.5 million in April 2026, an 8.4% reduction in five quarters. In March 2026 the board added $2.0 billion to the repurchase authorisation.
Total assets were $3.98 billion at 30 April 2026 against $2.16 billion of liabilities, none of which is debt.
The tax quarter that is not an earnings quarter
One point in the EPS series needs a warning label. GAAP diluted EPS was $4.26 in the July 2024 quarter — 2025 Q2 — against $0.30 to $0.44 in every recent quarter. That is not an operating result. It is the release of a valuation allowance against deferred tax assets: the same balance sheet shows noncurrent deferred tax assets going from $2.0 million to $822.0 million in a single quarter. The entire series here is GAAP, so the figure stays where it is rather than being smoothed away, but it is why trailing earnings and the P/E on the stock page look erratic through fiscal 2025 and 2026. Trailing twelve-month GAAP EPS to April 2026 is $1.54.
What the growth argument rests on
The bet management is making is Intelligent Agreement Management, the AI platform Docusign launched in 2024 around its Iris engine. It is measurable: IAM was 2.3% of annual recurring revenue at 31 January 2025, 10.8% a year later, and 12.6% by 30 April 2026. Total ARR was $3,272 million at the January 2026 year end, up 8.0% — the same high-single-digit number as revenue, which is the point. The platform is growing quickly inside a base that is not.
The scale underneath is not the problem: over 1.8 million customers at 31 January 2026, including roughly 280,000 direct enterprise and commercial accounts managed by the sales force, served by 7,044 employees.
What Thursday tests
Guidance for the July 2026 quarter is $865 to $869 million of revenue, about 8% growth at the midpoint, with roughly 1.4 points of that coming from currency. Full-year fiscal 2027 guidance is $3,490 to $3,502 million and an ARR growth rate of 8.25% to 8.75%.
So the revenue line is close to pre-announced. On the evidence of nine quarters, the number that actually moves the score is free cash flow margin — 27.2% in the comparable July 2025 quarter. Anything near that keeps Docusign in the high thirties. The other thing worth reading is the ARR growth rate against that 8.25–8.75% band, because that, not the quarter's revenue, is where an IAM reacceleration would first become visible.
Results land after the US close on 3 September 2026.
