Docusign Inc (NASDAQ:DOCU) stock fell 6.39% (As on December 5, 11:25:02 AM UTC-4, Source: Google Finance) after the company posting stronger‑than‑expected revenue and earnings and nudging its full‑year guidance higher. However, the initial market reaction was muted to negative: the stock traded 2–4% lower at points in extended and afternoon trading, as investors zeroed in on cautious fourth‑quarter guidance and questions about the durability of growth. Subscription revenue was $801.0 million, a 9% year-over-year increase. Professional services and other revenue was $17.4 million, a 14% year-over-year decrease. Billings were $829.5 million, a 10% year-over-year increase including approximately 0.5% positive impact of foreign currency exchange rates. Non-GAAP gross margin was 81.8% compared to 82.5% in the same period last year. Net cash provided by operating activities was $290.3 million compared to $234.3 million in the same period last year. Free cash flow was $262.9 million compared to $210.7 million in the same period last year. The company ended the quarter with about $1.0 billion in cash and investments and returned $215.1 million to shareholders through share repurchases.

Moreover, Docusign surpassed 25,000 customers on its AI-native IAM platform. Those customers have approximately 150 million opted-in agreements in the Docusign Navigator repository, with an average of over 5,000 contracts per customer. At its October Docusign Discover’25 developer event, Docusign announced that IAM will be available in ChatGPT, and is now available in Anthropic Claude, Gemini Enterprise, GitHub Copilot, and Microsoft Copilot studio in a beta release of its Docusign Model Context Protocol (“MCP”) server. The company also launched at Discover, Docusign Navigator and Maestro APIs allow developers to connect third-party systems and proprietary internal apps to the industry-leading Navigator repository and Maestro workflow builder. In Q3, Docusign achieved FedRAMP Moderate and GovRAMP authorization, while also expanding its identity portfolio by launching ID Verification with CLEAR and Risk-Based Verification.

DOCU in the third quarter of FY26 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of $0.91. The company had reported the adjusted revenue growth of 8 percent to $818.4 million in the third quarter of FY26, missing the analysts’ estimates for revenue of $807 million.

For the fourth quarter, DOCU expects total revenue to be in the range of $825–$829 million (about 7% year‑over‑year growth at the midpoint), Subscription revenue to be in the range of $808–$812 million, also around 7% growth, Billings to be in the range of $992 million–$1.002 billion, implying roughly 8% growth, Non‑GAAP gross margin to be in the range of 80.8–81.2% and Non‑GAAP operating margin to be in the range of 28.3–28.7%.