DocuSign shares experienced a significant surge early Friday as the electronic signature company announced an optimistic full-year billings outlook during its mid-year report. The company confirmed that billings—reflecting sales from new customers, subscription renewals, and additional sales—are expected to range between $3.3 billion to $3.35 billion for fiscal 2026, surpassing the current consensus estimate of $3.31 billion from FactSet.
In the recently concluded fiscal year, DocuSign's billings increased by 7% year over year, totaling $3.11 billion. Projected revenues for the ongoing fiscal year are estimated to be between $3.13 billion and $3.14 billion, with subscription sales anticipated to range from $3.06 billion to $3.07 billion.
The market is currently expecting total revenue to reach $3.14 billion for this period. Furthermore, the company's revenue for fiscal 2025 was reported at $2.98 billion, reflecting an impressive 8% growth compared to the previous year. Chief Financial Officer Blake Grayson noted during the earnings call that the guidance for fiscal 2026 signifies the first year of projected accelerated annual billings growth since 2021.
This growth is attributed to a demonstrated upward momentum in their intelligent agreement management platform, along with improved retention rates. In the fiscal fourth quarter, which ended January 31, DocuSign's adjusted earnings per share rose to $0.86 from $0.76, exceeding the average analyst estimate of $0.85.
Revenue for this quarter increased by 9% to reach $776.3 million, outpacing the market's expectations of $761.2 million. Notably, revenue from subscription and professional services showed robust growth, posting gains of 9% and 11%, respectively. The total billings for the quarter also saw an 11% increase, reaching $923.2 million.
This growth was primarily driven by early renewals and a rise in consumption trends, as highlighted by Grayson during the earnings call. He also noted that there was a notable increase in annual billing terms due to higher IAM billings and more deals being finalized. Looking ahead, the company forecasts billings for the current quarter ending April 30 to fall between $741 million and $751 million, slightly above the market forecast of $744.1 million.
Grayson explained during the analysts' call that a small percentage of contracts are invoiced on an upfront and annual basis. The revenue for this quarter is anticipated to range from $745 million to $749 million, with the market estimating $751 million. Subscription sales are projected to be between $729 million and $733 million, indicating continued growth for DocuSign in the electronic signature domain..