DocuSign reaches revenues of $801 million in the second quarter, driven by AI and intelligent deal management.

DocuSign (NASDAQ:DOCU) reported its fiscal Q2 2026 results on September 4, 2025, with revenues of $801 million, a 9% year-over-year increase, and billings of $818 million, a 13% year-over-year increase, achieving a non-GAAP operating margin of 30%. The quarter was characterized by notable advancements in Agreement Intelligence (IAM) based on AI, increased international and enterprise traction, and a strengthened focus by management on sustained profitable growth and returning capital to shareholders.

Billing acceleration drives DocuSign's business momentum

The company achieved a net dollar retention of 102% and an increase in the average deal size, driven by improvements in gross retention and strong early renewals. International revenues accounted for 29% of the total, growing 13% year-over-year.

CEO Allan C. Thygesen commented: “The second quarter business results exceeded our expectations. Revenue was $801 million, a 9% increase from the previous year, and billing was $818 million, a 13% increase from the previous year. The top line performance in the second quarter accelerated and represented one of our highest growth quarters in the last two years.”

This combination of revenue growth and profitability, along with a disciplined return of capital through stock buybacks, demonstrates strength in execution and signals greater returns for investors.

The adoption of IAM is accelerating alongside business and AI leadership

IAM is expected to reach a low double-digit percentage of the company's subscription book by year-end, with more than 50% of business account representatives closing at least one IAM deal. Fortune 1000 clients such as Sensata Technologies and T-Mobile are adopting advanced contract lifecycle management (CLM) and AI-driven analytics.

The recent launch of AI-driven features such as DocuSign Navigator, agreement preparation, and SCIM user management reinforces product differentiation in the ecosystem of smart contracts and decentralized identity verification.

Operational discipline maintains high margins amid cloud migration

The non-GAAP gross margin remained stable at 82%, despite ongoing cloud migration costs representing a headwind of approximately 100 basis points year-over-year. The company maintained a strong cash position of $1.1 billion with no debt, continuing with measured hiring and investing in business excellence and R&D for IAM scalability.

Perspectives

The guidance projects revenues of $804 million to $808 million for the third quarter of fiscal year 2026, ( a midpoint year-over-year growth of 7%, ) and annual revenues of $3.189 billion to $3.201 billion for fiscal year 2026, ( a midpoint year-over-year growth of 7%. The non-GAAP operating margin is expected to be 28% to 29% for the third quarter and 28.6% to 29.6% for the full year.

The company reiterated that IAM customers are on track to contribute a low double-digit percentage of their subscription book by year-end and emphasized the ongoing focus on returning capital through opportunistic share buybacks.