Docusign Inc (NASDAQ:DOCU) stock rose 3.18% (As on March 18, 11:18:06 AM UTC-4, Source: Google Finance) after the company reported fourth quarter results that exceeded analyst expectations. Subscription revenue for the quarter was $819.0 million, up 8% YoY, while billings increased 10% to $1.0 billion. Professional services and other revenue was $17.9 million, a 3% year-over-year decrease.  Annual Recurring Revenue (“ARR”) was $3,272 million as of January 31, 2026, and $3,030 million as of January 31, 2025, an 8.0% year-over-year increase. The company’s Intelligent Agreement Management platform represented 10.8% of total annual recurring revenue as of January 31, 2026, up from 2.3% a year earlier. Free cash flow (FCF) for the quarter reached $350.2 million, compared to $279.6 million in the same period last year. Dollar net retention (DNR) was 102% in Q4, up from 101% a year earlier and unchanged quarter over quarter. Net cash provided by operating activities was $377.2 million compared to $307.9 million in the same period last year. Cash, cash equivalents, restricted cash and investments were $1.1 billion at the end of the quarter.

Moreover, the company expanded IAM Platform and eSignature Capabilities: Docusign continued to evolve IAM into an end-to-end platform for customers’ agreement workflows. In January, Docusign launched a re-imagined eSignature experience powered by AI. The launch provides customers with I-Assisted Agreement Summaries, Automated Agreement Preparation and 3rd-Party Data Verification.

DOCU in the fourth quarter of FY 25 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of $0.95. The company had reported the adjusted revenue growth of 8 percent to $836.9 million in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $827.91 million. Non-GAAP gross margin was 81.8% compared to 82.3% in the same period last year.

Additionally, the company’s board approved an additional $2.0 billion increase to its existing stock repurchase program, bringing total remaining authorization to $2.6 billion as of March 17, 2026. DocuSign repurchased $269.1 million of common stock during the quarter, up from $161.7 million in the prior-year period.

For fiscal 2027, DocuSign issued revenue guidance of $3.48 billion to $3.50 billion, with a midpoint of $3.49 billion that exceeds the analyst consensus of $3.42 billion. For the first quarter of fiscal 2027, DocuSign expects revenue of $822 million to $826 million, representing 8% growth at the midpoint.