DocuSign inventory tanks 18% after firm cuts billings outlook

Shares of DocuSign tanked 18% in buying and selling on Friday, a day after the e-signature supplier reported stronger-than-expected earnings however slashed its full-year billings outlook.

Here is how the corporate carried out within the fiscal first quarter, in contrast with estimates from analysts polled by LSEG:

• Earnings per share: 90 cents, adjusted, vs. 81 cents anticipated
• Income: $764 million vs. $748 million anticipated

Billings, a closely-watched gross sales metric, got here in at $739.6 million within the fiscal first quarter, which ended April 30. That was decrease than the $746 million anticipated by analysts, in line with StreetAccount. It additionally fell wanting the corporate’s personal forecast, which guided for billings between $741 million and $751 million.

For the present fiscal yr, DocuSign stated it expects billings of $3.28 billion to $3.34 billion, down from a variety of $3.3 billion to $3.35 billion.

Within the first quarter of DocuSign’s 2026 fiscal yr, income jumped 8% yr over yr to $764 million. Subscription income elevated 8% from the identical interval a yr in the past to $746.2 million.

DocuSign reported web earnings of $72.1 million, or 34 cents per share, in comparison with web earnings of $33.8 million, or 16 cents per share, a yr earlier.

For the fiscal second quarter, the corporate expects income to be between $777 million and $781 million, in comparison with consensus estimates of $775 million, in line with LSEG. For the complete fiscal yr, DocuSign projected income of $3.15 billion to $3.16 billion. Analysts have been anticipating $3.14 billion, in line with LSEG.

The corporate additionally introduced a further $1 billion inventory buyback, taking its share repurchase plan to $1.4 billion.

DocuSign shares are down greater than 16% yr so far.

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