Docusign reports the second quarter of fiscal 2027 — the three months ended 31 July 2026 — after the US close on Thursday 3 September 2026, with the call at 2 p.m. Pacific. Consensus is $1.09 of non-GAAP earnings per share on about $867 million of revenue, press-reported from third-party estimate feeds, with the per-share figure quoted between $1.08 and $1.09 depending on the feed.
Both numbers are already on the record. Docusign guided second-quarter revenue to $865–869 million on 4 June; the consensus is the midpoint. And the per-share consensus is the $1.09 Docusign reported in April, to the cent.
The points
- The revenue consensus is the guide. $867.16 million against a guided $865–869 million is the middle of the range, and against the $800.636 million of the July 2025 quarter it is +8.3% — inside the 7.0% to 9.0% band every one of the last nine quarters has landed in.
- About 1.4 points of that growth is currency. Docusign says so in its own guidance footnote: ex-FX, the guided range would be roughly 1.4 points lower for this quarter and 1.3 points lower for the year. Call the organic rate 6.6% to 7.1%.
- The 18.5% earnings growth in the consensus is not margin. $1.09 against the $0.92 Docusign reported for the July 2025 quarter is +18.5%. On the company's own guided share count of 191–196 million, $1.09 implies non-GAAP net income of about $211 million, against $194 million a year ago — +8.7%, on revenue +8.3%. The implied non-GAAP net margin is 24.3% against 24.2%. That arithmetic is ours; the inputs are all Docusign's.
- The rest of the gap is the share count. Diluted shares were 211 million in the July 2025 quarter and are guided to 191–196 million now — down 7.1% to 9.5%. Repurchases were $317.5 million in the April quarter alone, against a remaining authorisation of $2.4 billion.
- The GAAP-to-non-GAAP wedge is $0.69. April printed $1.09 non-GAAP against $0.40 GAAP. The EPS series on this site is GAAP, so the consensus above cannot be subtracted from it.
- The full-year guide asks for the same thing again. $3,490–3,502 million, less April's $830.235 million and the $867 million guided midpoint, leaves about $1,799 million for the second half against $1,655 million a year earlier — +8.7%. The subtraction is ours.
- The score is a cash-margin story, not a growth one. Docusign's Rule of 40 was 43.6 in April on 8.7% growth and a 34.9% free cash flow margin. The comparable July quarter converted at 27.2%, which on consensus revenue would score in the mid-thirties.
What $1.09 actually asks for
| Q2 FY2026 (Jul 2025) | Q2 FY2027 consensus | |
|---|---|---|
| Revenue | $800.6M | $867.2M (+8.3%) |
| Non-GAAP diluted EPS | $0.92 | $1.09 (+18.5%) |
| Diluted shares | 211M | 191–196M guided |
| Implied non-GAAP net income | $194M | ~$211M (+8.7%) |
| Implied non-GAAP net margin | 24.2% | ~24.3% |
Reported revenue, the reported per-share figures and the share counts are Docusign's own. The bottom two rows are multiplication and division on them, and are ours.
This is the single most useful thing to arrive with on Thursday. A consensus that grows earnings per share more than twice as fast as revenue usually implies operating leverage; here it implies almost none. Take the guided share-count midpoint of 193.5 million and the per-share consensus resolves to a business converting the same fraction of each revenue dollar it converted a year ago, with 8% fewer shares to divide by.
That is not a criticism of the number — buying back 8% of the company a year is a legitimate way to grow per-share earnings, and Docusign has the cash to keep doing it. It does mean that a beat on the per-share line tells you very little on its own, and that the lines worth reading are the ones underneath it.
The growth line has not moved in nine quarters
| Quarter | Revenue | YoY | FCF margin | R40 |
|---|---|---|---|---|
| 2026 Q1 (Apr 2025) | $763.7M | +7.6% | 29.8% | 37.4 |
| 2026 Q2 (Jul 2025) | $800.6M | +8.8% | 27.2% | 36.0 |
| 2026 Q3 (Oct 2025) | $818.4M | +8.4% | 32.1% | 40.5 |
| 2026 Q4 (Jan 2026) | $836.9M | +7.8% | 41.8% | 49.7 |
| 2027 Q1 (Apr 2026) | $830.2M | +8.7% | 34.9% | 43.6 |
| 2027 Q2, consensus | $867.2M | +8.3% | — | — |
Reported figures are Docusign's; the margins and scores are ours, as set out when Docusign joined coverage. Nine quarters and the growth column never leaves 7.0–9.0%. Every point of movement in the score comes from the cash column, and that column is seasonal: January is the collection quarter and prints the year's best margin every time.
So the July quarter is structurally the weak one on the card. It scored 36.0 last year. Repeating that 27.2% margin on consensus revenue puts the score near 35.5, and nobody should read that as deterioration.
The line that would actually change the story is ARR growth. Docusign guides it for the full year at 8.25% to 8.75% — the same high-single-digit number as revenue, which is the point. Intelligent Agreement Management, the AI platform the growth argument rests on, was 2.3% of total ARR at 31 January 2025, 10.8% a year later and 12.6% at 30 April 2026. It is growing fast inside a base that is not. A reacceleration would show up there first, and in the ARR growth rate, months before it showed up in revenue.
What the price is paying for
Our Docusign model, published 31 August, values the company above the market in three of its four cases against the $66.27 close of that day:
| Case | Fair value | vs $66.27 |
|---|---|---|
| Bear | $61.65 | −7% |
| Base | $79.28 | +20% |
| Bull | $97.76 | +48% |
| Thygesen | $101.36 | +53% |
These are our assumptions, not company forecasts. What is worth noting is the shape: even the bear case is only 7% below the price, because a business with a 79% gross margin, no debt, $1.0 billion of net cash and a 30% cash margin is hard to value at much less unless the revenue line actually turns down. The distance between the cases is almost entirely what you believe about the growth rate — and the growth rate has been the same number for nine quarters.
The sell side does not agree with any of it. The consensus 12-month price objective on 31 August was $57.52, about 13% below the price, in a range of $46.89 to $86.00.
What to watch
- Revenue against the guided $865–869 million, and the full-year $3,490–3,502 million. The quarter is close to pre-announced; the full-year number is where a raise or a trim would land.
- The ARR growth rate against the guided 8.25–8.75% band, and IAM's share of ARR against 12.6%. This is the only place a reacceleration can appear before revenue.
- Non-GAAP operating margin against the guided 29.7–30.2%, and against the full-year 30.5–31.0% — the year guide is above the quarter guide, so the second half has to carry it.
- The diluted share count against the guided 191–196 million, and repurchases against $317.5 million. On the arithmetic above, this is where most of the per-share growth comes from.
- Free cash flow against $217.6 million and a 27.2% margin in the July quarter a year ago. The seasonal trough; judge it against last July, not against April.
- How much of the growth is currency. Docusign quantifies the FX effect in its own guidance footnote — about 1.4 points this quarter. If the reported figure is flattered by more than that, the organic rate is below 6.6%.
Docusign reports the quarter ended 31 July 2026 after the US close on Thursday 3 September 2026, with the call at 2 p.m. Pacific. Consensus of $1.09 per share — quoted between $1.08 and $1.09 across feeds — on about $867 million of revenue is press-reported from third-party estimate feeds as of 2 September 2026 on a non-GAAP basis, and is not a series this site stores or verifies. All guidance and all reported figures here — second-quarter and full-year revenue, non-GAAP gross and operating margin, the guided diluted share count, the ARR growth band, IAM's share of ARR, free cash flow, repurchases and the remaining authorisation, and the currency effect on guided growth — are Docusign's own, from its first-quarter fiscal 2027 release of 4 June 2026 and the quarterly releases before it. Ours rather than the company's: the implied non-GAAP net income and net margin, the implied second half, the Rule of 40 scores and free cash flow margins, and the fair values and cases in our Docusign model of 31 August 2026, which are assumptions and not company forecasts. Analyst price-target data is via stockanalysis.com, 31 August 2026. The price of $66.27 is the 31 August 2026 close; a live quote will differ.
