DocuSign, Inc.

Q1 fiscal 2027 revenue was $830 million, up 9% year over year; non-GAAP operating income was $266 million and operating margin was 32.0%, up from 29.5% in Q1 of fiscal 2026; non-GAAP diluted EPS was $1.09 versus $0.90 last year; GAAP diluted EPS was $0.40 versus $0.34 last year; non-GAAP gross margin was 81.5%; free cash flow was $289 million with a 35% margin; and IAM was 12.6% of total ARR, up from 10.8% last quarter. For Q2, management guided revenue to $865 million to $869 million, non-GAAP gross margin to 81.5% to 81.7%, non-GAAP operating margin to 29.7% to 30.2%, and non-GAAP EPS share count to 191 million to 196 million. For fiscal 2027, guidance calls for revenue of $3.490 billion to $3.502 billion, ARR growth of 8.25% to 8.75% to over $3.5 billion at the midpoint, IAM at about 18% of total ARR and over $600 million in ARR, gross margin of 81.5% to 82.0%, operating margin of 30.5% to 31.0%, and share count of 190 million to 195 million.

Allan Thygesen framed the quarter as evidence that DocuSign’s AI-native IAM platform is gaining traction and said the company is at an “inflection point” in agreement management. He emphasized the strategy of building end-to-end workflows across legal, procurement, HR, sales, finance, and other functions, alongside a broad partner ecosystem and agentic AI capabilities. His tone was confident and upbeat, with repeated comments that the company is “very bullish” on the opportunity and can compound growth acceleration over time.

Blake Grayson focused on the durability of the core business, the early progress of IAM, and continued discipline on profitability and capital returns. He cited Q1 revenue of $830 million, 81.5% gross margin, 32.0% operating margin, $289 million of free cash flow, and $318 million of share repurchases, plus a $2.4 billion remaining authorization. He also noted 1.9 million total customers, direct DNR over 102%, 1,258 customers spending over $300,000 in ACV, $1 billion of cash and investments, no debt, and Q1 diluted weighted average shares of 196.5 million, down 8% year over year.

Analysts focused on how IAM changes consumption, pricing, competitive positioning, and whether growth is decelerating. Management said IAM adoption is meaningfully lifting eSign consumption, but declined to quantify the uplift, and argued that comparing IAM and non-IAM as separate products misses the platform effect. On pricing, Allan said the new credit-based IAM Platform Plan has had strong enterprise uptake and could eventually move down-market, while on competition he said DocuSign is positioned as the broad “nerve center” for agreements and can coexist with CLM and specialized legal-tech vendors through partnerships. Questions about billings and ARR confidence were met with reassurance that billings are timing-volatile and that the full-year ARR guide reflects expected acceleration driven by IAM and retention gains.