DocuSign stock tanks 18% after company cuts billings outlook

DocuSign experienced a significant decline in its stock, dropping 18% during trading on Friday. This downturn followed the company's release of earnings that exceeded expectations but included a disappointing revision of its full-year billings outlook. In its fiscal first quarter, which concluded on April 30, DocuSign reported billings of $739.6 million. This figure fell short of the $746 million anticipated by analysts, according to data from StreetAccount. It also did not meet the company's previous guidance, which had projected billings between $741 million and $751 million. Looking ahead, DocuSign revised its expectations for the current fiscal year, now forecasting billings in the range of $3.28 billion to $3.34 billion, a decrease from its earlier estimate of $3.3 billion to $3.35 billion. Despite these setbacks, the company reported a year-over-year revenue increase of 8%, reaching $764 million for the first quarter of its 2026 fiscal year. Subscription revenue also rose by 8%, totaling $746.2 million. Net income for the quarter was $72.1 million, or 34 cents per share, a significant improvement from the $33.8 million, or 16 cents per share, recorded the previous year. For the fiscal second quarter, DocuSign anticipates revenue between $777 million and $781 million, slightly above the consensus estimate of $775 million. For the full fiscal year, the company projects revenue of $3.15 billion to $3.16 billion, surpassing analysts' expectations of $3.14 billion. Additionally, the company announced a new $1 billion stock buyback, increasing its total share repurchase program to $1.4 billion. However, despite these announcements, DocuSign's shares have fallen more than 16% since the beginning of the year.