Reasons to Consider Including Docusign Stock in Your Investment Portfolio

Docusign Outperforms Market Trends

Over the past month, Docusign, Inc. (DOCU) has demonstrated notable growth, with its stock price climbing 11.3%. This performance stands out compared to the internet software sector, which slipped by 0.1%, and the Zacks S&P 500 composite, which declined by 0.6%.

Image Source: Zacks Investment Research

Growth Outlook for Docusign

Looking ahead, Docusign’s revenue is projected to rise by 7.86% in 2026 and 6.6% in 2027 compared to the previous years. Earnings are also forecasted to grow, with estimates of a 6.76% increase in 2026 and a 9.7% jump in 2027. Over the next three to five years, the company’s earnings per share are expected to expand at an average annual rate of 14.3%.

What’s Driving Docusign’s Success?

Docusign has teamed up with Anthropic to embed its Intelligent Agreement Management (IAM) platform into Cowork, enhancing contract automation through artificial intelligence. This integration allows users to create, review, route, and manage contracts using natural language commands, streamlining workflows for departments like legal, sales, procurement, and HR. The platform also prioritizes enterprise-level security and access controls to safeguard sensitive information.

The company’s recognition as a recipient of the Inc. Power Partner Awards underscores its impact in helping organizations optimize contract processes with AI-powered solutions. Docusign’s IAM platform and AI engine, Iris, enable businesses to automate tasks, minimize risks, and speed up decision-making, further establishing its leadership in AI-driven contract management.

Strong demand for Docusign’s services fueled robust results in the third quarter of fiscal 2026. Total revenue reached $818.4 million, up 8% year over year, with a slight boost from favorable currency exchange rates. Subscription revenue, the main growth engine, increased 9% to $801 million. Billings also rose 10% to $829.5 million, reflecting healthy customer demand and signaling positive prospects for future growth.

Docusign continues to enhance its technology through developer-centric and AI initiatives. The introduction of Docusign for Developers strengthens the IAM platform by allowing developers to automate and integrate workflows using tools like Maestro and Navigator APIs. AI-Assisted Review helps identify inconsistencies and suggest edits in Microsoft Word, while integrations with Workday, SAP, and Salesforce improve data accuracy and workflow efficiency.

On the financial front, Docusign has demonstrated a commitment to returning value to shareholders through stock buybacks. The company repurchased $63.04 million, $145.5 million, and $683.5 million of its common stock in fiscal 2023, 2024, and 2025, respectively. In the third quarter of fiscal 2026, buybacks totaled $215.1 million, up from $172.7 million a year earlier, reflecting confidence in its financial position.

Potential Risks for Docusign

Despite its strengths, Docusign faces challenges related to high operating costs, particularly in sales and marketing. Although there was a slight reduction in expenses in fiscal 2024, overall costs remain elevated. In the third quarter of fiscal 2026, operating expenses increased by 4.3% year over year, and for the first nine months of the fiscal year, costs rose by 4.9%, highlighting ongoing pressure to manage expenditures.

Docusign’s Zacks Rank and Alternative Stock Picks

Docusign currently holds a Zacks Rank of #3 (Hold). For investors seeking alternatives, Dave Inc. (DAVE) and Maximus (MMS) are two stocks with higher Zacks rankings.

• Dave Inc. (DAVE): Holds a Zacks Rank of 2 (Buy), with projected earnings growth of 9.9% in 2026 and 20.8% in 2027. Dave has exceeded earnings expectations in each of the last four quarters, averaging a 54.2% earnings surprise.
• Maximus (MMS): Also carries a Zacks Rank of 2, with anticipated earnings growth of 15% in 2026 and 5.04% in 2027. Maximus surpassed earnings estimates in three of the past four quarters, with an average surprise of 25.5%.

Quantum Computing: The Next Big Opportunity

Quantum computing is emerging as a transformative technology, potentially surpassing even artificial intelligence in impact. Major tech companies like Microsoft, Google, Amazon, Oracle, Meta, and Tesla are racing to incorporate quantum computing into their operations.

Kevin Cook, a Senior Stock Strategist, has identified seven companies positioned to lead in the quantum computing space in his report, Beyond AI: The Quantum Leap in Computing Power. Cook, who recognized NVIDIA’s potential early on, now highlights quantum computing as the next major investment opportunity.