Docusign Inventory Sinks as Agency Cuts Billings Outlook on Change to AI Platform

Docusign (DOCU) shares sank 18% Friday, a day after the digital signing software program maker’s billings missed estimates and it slashed its full-year billing outlook as the corporate shifted to an synthetic intelligence (AI) mannequin.

The corporate reported fiscal 2026 first-quarter billings of $739.6 million, whereas the common estimate by analysts surveyed by Seen Alpha was $747.8 million. For the complete yr, Docusign sees billings within the vary of $3.285 billion to $3.339 billion, down from its earlier outlook of $3.300 billion to $3.354 billion.

CEO Allan Thygesen defined on the earnings name that the corporate anticipated a decline in billings this yr due to “foundational go-to-market modifications” because it employed its AI-driven settlement platform, Clever Settlement Administration (IAM), in response to a transcript supplied by AlphaSense. Nevertheless, Thygesen stated that “the influence occurred before anticipated,” which triggered a drop in first-quarter early renewals, negatively impacting billings progress.

Q1 Outcomes High Analysts’ Estimates

The information offset better-than-expected first-quarter outcomes. Docusign reported adjusted earnings per share (EPS) of $0.90, with income rising 8% year-over-year to $763.7 million. Each exceeded Seen Alpha forecasts.

As well as, the corporate introduced a rise within the present inventory buyback program by as much as $1.0 billion. The plan’s present authorization is $1.4 billion. 

With at this time’s sharp declines, shares of Docusign fell into damaging territory this yr.