Docusign (NASDAQ: DOCU) shares gained nearly 7% to about $81 in late-morning trading on Friday after the digital agreements and eSignatures provider’s fiscal 2026 second-quarter financial results surpassed analyst expectations.
Docusign reported earnings for the quarter of $0.31 per share on revenue that rose 9% year over year to $800.6 million.
The analyst consensus forecast was for $0.27 per share in earnings and $780 million in revenue for the period.
"Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM, and IAM businesses," Docusign CEO Allan Thygesen said in a statement.
"Q2 business results outperformed, leading to one of Docusign's highest growth and profitability quarters in recent years."
Docusign’s billings at quarter end were $818 million, up 12.9% year over year.
The company also increased its full-year revenue outlook to a range of $3.18 billion to $3.2 billion, as it plans to boost its artificial intelligence offerings to appeal to larger customers.
Docusign’s new AI tool, called Intelligent Agreement Management, summarizes and analyzes agreement documents, The Wall Street Journal reported.
Docusign shares have fallen about 10% year to date but have gained 42% over the past 52 weeks.