DocuSign, Inc. has released its financial results for the second quarter of fiscal 2026, and the figures portray a robust performance. The company reported a revenue of $800.6 million, indicating a 9% year-over-year increase. Subscription revenue showed a similar growth pattern, reaching $784.4 million, also up by 9% from the previous year. However, professional services and other revenue experienced a 13% year-over-year decrease, amounting to $16.2 million.
The billings for the quarter were $818.0 million, marking a 13% year-over-year increase, with a 1% positive impact from foreign currency exchange rates. On the profitability front, the GAAP gross margin improved to 79.3% from 78.9% in the same period last year, while non-GAAP gross margin was 82.0%, a slight decline from 82.2% in the comparable period.
GAAP net income per basic share was reported at $0.31 on 203 million shares outstanding, a notable drop from $4.34 on 205 million shares outstanding in the same period last year. Similarly, GAAP net income per diluted share stood at $0.30 on 211 million shares outstanding, a significant decrease from $4.26 on 208 million shares outstanding in the year-ago period. Non-GAAP net income per diluted share was $0.92 on 211 million shares outstanding, down from $0.97 on 208 million shares outstanding in the same period last year.
The company’s net cash provided by operating activities rose to $246.1 million from $220.2 million in the same period last year. Free cash flow also increased, reaching $217.6 million compared to $197.9 million in the previous year. Cash, cash equivalents, and investments totaled $1.1 billion at the end of the quarter. Additionally, DocuSign repurchased $201.5 million worth of common stock, slightly higher than the $200.1 million repurchased in the same period last year.
Looking ahead, DocuSign provided guidance for the next quarter and the full fiscal year. For the three months ending October 31, 2025, the company expects total revenue between $804 million and $808 million, representing a 7% year-over-year change. Subscription revenue is anticipated to range from $786 million to $790 million, with billings projected to be between $785 million and $795 million.
For the fiscal year ending January 31, 2026, DocuSign forecasts total revenue in the range of $3,189 million to $3,201 million, reflecting a 7% year-over-year change. Subscription revenue is expected to be between $3,121 million and $3,133 million, while billings are projected to range from $3,325 million to $3,355 million.
As a result of these announcements, the company's shares have moved -0.01% on the market, and are now trading at a price of $75.895. If you want to know more, read the company's complete 8-K report here.
