AI-Driven Business Accelerates Growth: DocuSign (DOCU.US) reported a 9.4% year-on-year revenue growth in the second quarter and raised its full-year guidance.

DocuSign (DOCU.US), an electronic signature solutions provider, saw its stock price rise by 7% in after-hours trading on Thursday, following the release of its second-quarter fiscal 2027 earnings report and an upward revision of its full-year revenue outlook. The report indicated that DocuSign's revenue for the quarter reached $875.7 million, a year-on-year increase of 9.4%, exceeding expectations by $8.54 million. The adjusted earnings per share were $1.16, surpassing the market's anticipated $1.09. For the quarter ending July 31, the adjusted gross margin was 81.7%, slightly above the expected 81.6%; the adjusted operating margin was 31.6%, also exceeding the expected 30%. The GAAP earnings per share was $0.40, while the expectation was $0.41. Free cash flow was $295.8 million, with a margin of 34%, compared to $217.6 million and a margin of 27% in the same period last year. At the end of the quarter, the company held a total of $973.1 million in cash, cash equivalents, and investments. CEO Allan Thygesen stated, "DocuSign is raising its performance expectations as artificial intelligence accelerates growth across the business. Weve said that IAM will become the system of action for agreements, and this quarter we delivered on that promise. Our AI agent can now securely execute contract workflows from end to end, while the IAM platform handled a record number of agreements." For the ongoing quarter, DocuSign expects revenue to be between $886 million and $890 million, which is in line with the market's expectation of $888 million. For the full fiscal year, the company has raised its revenue guidance to between $3.5 billion and $3.51 billion, up from the previous forecast of $3.49 billion to $3.5 billion. Additionally, it has increased its adjusted operating margin guidance to between 31% and 31.5%, compared to the previous guidance of 30.5% to 31%.