DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track DocuSign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. DocuSign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

DocuSign, Inc.

Key Points
Docusign's digital agreement software kept the business world moving during the pandemic's lockdowns and social distancing efforts.
Demand for its services slowed after 2021 as anti-COVID efforts relaxed, and the stock is currently trading 74% below its high.
Docusign's new agreement management platform is powered by AI, and it could reignite the company's growth.
Docusign (NASDAQ: DOCU) stock was a pandemic darling. Its stock price peaked at around $310 in 2021, a tenfold gain from its 2018 IPO price of $29. Lockdowns and social restrictions triggered by COVID-19 drove explosive demand for the company's digital contract management tools, which helped businesses close deals even when participants could not meet face to face.
But Docusign's growth slowed dramatically when social conditions returned to normal in 2022, which led to a sharp decline in its stock. Despite climbing by 40% over the past year, it remains 74% below its 2021 peak.
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Fortunately for shareholders, the company's recovery looks set to continue thanks to strong demand for its new Intelligent Agreement Management (IAM) platform, which uses artificial intelligence (AI) to make contract management even simpler. Here's why investors might want to buy the stock while it's still trading at a steep discount to its all-time high.
Solving the "agreement trap" with AI
A study published earlier this year by global consulting firm Deloitte estimates that businesses combined are losing a whopping $2 trillion in economic value each year from poor contract management processes. Docusign's IAM platform aims to solve the "agreement trap" problem by using AI to help businesses draft, negotiate, and close deals more efficiently. But the platform doesn't stop there, because it also makes contract lifecycle management a breeze.
One of IAM's flagship features is a digital repository called Navigator, where businesses can store all of their agreements. It uses AI to automatically extract key details from each contract, and makes them discoverable via a search function, so employees no longer have to dig through individual documents for the information they need. Navigator also notifies managers of upcoming contract renewal dates, so deals don't expire unexpectedly.
In prepared remarks delivered last week in conjunction with the company's fiscal 2026 second-quarter report, CEO Allan Thygesen said the number of documents ingested by Navigator had soared by 150% compared to just six months ago. Businesses are now using it to process tens of millions of agreements every single month.
Docusign continues to roll out new IAM features, and the platform is likely to expand for the foreseeable future. For example, the company launched a new tool during fiscal Q2 called Agreement Preparation, which uses AI to detect the type of contract a business is trying to draft, and automatically create a template complete with the necessary fields (like areas for critical details and signatures). The larger an organization, the more potential time this tool could save it.
Docusign's revenue growth just reaccelerated
Docusign generated $800.6 million in revenue during fiscal Q2, which was comfortably above management's guidance range of $777 million to $781 million. That was a 9% increase from the year-ago period, and an acceleration from the 8% growth the company delivered in its fiscal first quarter.
Docusign was growing far more quickly at the height of the pandemic in 2021, mainly because it was investing aggressively in areas like marketing to attract new customers. This strategy worked well in the short term, but it was unsustainable and led to significant losses at the bottom line.
The new-look Docusign might be growing at a more modest pace, but it's highly profitable. It delivered generally accepted accounting principles (GAAP) net income of $135.1 million during the first two quarters of fiscal 2026, and adjusted (non-GAAP) net income of $385.9 million.
The non-GAAP metric is management's preferred measure of profitability because it excludes one-off and non-cash expenses like stock-based compensation, so it's a better reflection of how much actual money the business is generating.
Consistent profits give Docusign the flexibility to start funneling more money into growth-oriented expenses like marketing once again, which could fuel a further acceleration in revenue growth.
Docusign stock is trading at an attractive valuation
Docusign's price-to-sales (P/S) ratio peaked at above 40 during 2021 -- an unsustainable valuation. However, the 74% decline in the stock since then, combined with the company's consistent revenue growth, has pushed its P/S ratio down to a more reasonable 5.4. That is actually a steep discount to its average of 12.9, which dates back to its IPO in 2018.
On that note, Docusign's strong fiscal Q2 revenue prompted management to increase its fiscal 2026 guidance for the second time this year. The company now expects to generate up to $3.201 billion in revenue, which is $60 million higher than the $3.141 billion top end of its original guidance range.
The momentum in Docusign's business is clear, which explains why its stock has climbed by more than 40% over the past year. The IAM platform could be the secret to unlocking further upside, so investors might want to take advantage of the stock's attractive valuation by buying it now.
Should you invest $1,000 in Docusign right now?
Before you buy stock in Docusign, consider this:
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Glorious Growth Stock Down 74% to Buy on the Dip in September

Key Points
Docusign reported its Q2 earnings, beating Wall Street's targets.
The company continues to show steady growth as it expands its product offerings.
Shares of Docusign (NASDAQ: DOCU) jumped on Friday, finishing the day up 4.8% after climbing as much as 8.9% earlier in the session. The move came as the S&P 500 (SNPINDEX: ^GSPC) dropped 0.3% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was flat.
The software maker reported its Q2 earnings Thursday evening, beating expectations across the board and raising its outlook as artificial intelligence (AI) features gain traction.
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Docusign delivers a clean beat
The company reported Q2 adjusted earnings per share of $0.92, beating analyst estimates. Sales jumped 9% year over year (YOY) to $800.6 million, while sales specifically from ads jumped 13% YOY.
Customer growth showed steady momentum, with the total number of customers increasing by 9% to exceed 1.7 million. Management raised guidance for the coming quarter, citing strength in its expanding AI capabilities.
CEO Allan Thygesen said of the performance, "Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM, and IAM businesses."
The company also repurchased more than $200 million of its stock and finished the quarter with a healthy balance sheet that includes more than $1 billion in cash and short-term investments.
DOCU looks solid
Docusign is executing well on its transition beyond simple e-signatures into broader agreement management and AI-powered contract analysis. The stock carries a very solid PEG ratio -- a handy valuation metric that combines P/E and growth rates -- of 0.4.
Docusign remains a mature software company in a competitive market, but I think it is positioning itself well and will continue to grow. It makes a nice addition to a well-diversified portfolio.
Should you invest $1,000 in Docusign right now?
Before you buy stock in Docusign, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Docusign wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Docusign. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Did Docusign Stock Jump Today?

(RTTNews) - DOCUSIGN INC (DOCU) released a profit for second quarter that Decreased from the same period last year but beat the Street estimates.
The company's bottom line totaled $62.97 million, or $0.30 per share. This compares with $888.21 million, or $4.26 per share, last year.
Excluding items, DOCUSIGN INC reported adjusted earnings of $195.06 million or $0.92 per share for the period.
Analysts on average had expected the company to earn $0.85 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period rose 8.8% to $800.64 million from $736.03 million last year.
DOCUSIGN INC earnings at a glance (GAAP) :
-Earnings: $62.97 Mln. vs. $888.21 Mln. last year. -EPS: $0.30 vs. $4.26 last year. -Revenue: $800.64 Mln vs. $736.03 Mln last year.
-Guidance: Next quarter revenue guidance: $804 - $808 Mln Full year revenue guidance: $3,189 - $3,201 Mln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DOCUSIGN INC Q2 Profit Decreases, But Beats Estimates

(RTTNews) - DOCUSIGN INC (DOCU) will host a conference call at 5:00 PM ET on September 4, 2025, to discuss Q2 26 earnings results.
To access the live webcast, log on to https://investor.docusign.com/investors/home
To listen to the call, dial 877-407-0784 (US) 201-689-8560 (International).
For a replay call, dial 844-512-2921 (US) or 412-317-6671 (International), passcode 13755371.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DOCUSIGN Q2 26 Earnings Conference Call At 5:00 PM ET

The following companies are expected to report earnings after hours on 09/04/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Broadcom Inc. (AVGO)is reporting for the quarter ending July 31, 2025. The electric company company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.35. This value represents a 32.35% increase compared to the same quarter last year. AVGO missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -1.48%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for AVGO is 55.18 vs. an industry ratio of 64.30.
Copart, Inc. (CPRT)is reporting for the quarter ending July 31, 2025. The auction company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.37. This value represents a 12.12% increase compared to the same quarter last year. CPRT missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -10.81%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for CPRT is 30.85 vs. an industry ratio of -7.10, implying that they will have a higher earnings growth than their competitors in the same industry.
lululemon athletica inc. (LULU)is reporting for the quarter ending July 31, 2025. The textile company's consensus earnings per share forecast from the 13 analysts that follow the stock is $2.84. This value represents a 9.84% decrease compared to the same quarter last year. In the past year LULU has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 0.39%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for LULU is 13.87 vs. an industry ratio of 17.80.
Guidewire Software, Inc. (GWRE)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.22. This value represents a 18.52% decrease compared to the same quarter last year. GWRE missed the consensus earnings per share in the 1st calendar quarter of 2025 by -46.67%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for GWRE is 246.35 vs. an industry ratio of 40.90, implying that they will have a higher earnings growth than their competitors in the same industry.
DocuSign, Inc. (DOCU)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.23. This value represents a 34.29% decrease compared to the same quarter last year. In the past year DOCU has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 60%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DOCU is 64.87 vs. an industry ratio of 40.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Samsara Inc. (IOT)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.08. This value represents a 11.11% increase compared to the same quarter last year. In the past year IOT has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 50%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for IOT is -208.88 vs. an industry ratio of 40.90.
UiPath, Inc. (PATH)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 6 analysts that follow the stock is $-0.05. This value represents a 58.33% increase compared to the same quarter last year. PATH missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -9.09%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PATH is 272.00 vs. an industry ratio of 40.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Argan, Inc. (AGX)is reporting for the quarter ending July 31, 2025. The building company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.99. This value represents a 51.91% increase compared to the same quarter last year. In the past year AGX Zacks Investment Research reports that the 2026 Price to Earnings ratio for AGX is 32.57 vs. an industry ratio of 18.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Braze, Inc. (BRZE)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.26. This value represents a 18.18% decrease compared to the same quarter last year. In the past year BRZE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 4.17%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BRZE is -27.54 vs. an industry ratio of 40.90.
Phreesia, Inc. (PHR)is reporting for the quarter ending July 31, 2025. The medical information systems company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.07. This value represents a 77.42% increase compared to the same quarter last year. In the past year PHR has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 46.15%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PHR is -179.06 vs. an industry ratio of 13.00.
Quanex Building Products Corporation (NX)is reporting for the quarter ending July 31, 2025. The building company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.85. This value represents a 16.44% increase compared to the same quarter last year. In the past year NX has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 25%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for NX is 7.61 vs. an industry ratio of 18.70.
Cango Inc. (CANG)is reporting for the quarter ending June 30, 2025. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.08. This value represents a 180.00% decrease compared to the same quarter last year. In the past year CANG Zacks Investment Research reports that the 2025 Price to Earnings ratio for CANG is -4.90 vs. an industry ratio of 28.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for September 4, 2025 : AVGO, CPRT, LULU, GWRE, DOCU, IOT, PATH, AGX, BRZE, PHR, NX, CANG

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in DocuSign Inc (Symbol: DOCU), where a total of 25,141 contracts have traded so far, representing approximately 2.5 million underlying shares. That amounts to about 110% of DOCU's average daily trading volume over the past month of 2.3 million shares. Especially high volume was seen for the $77 strike call option expiring August 29, 2025, with 18,402 contracts trading so far today, representing approximately 1.8 million underlying shares of DOCU. Below is a chart showing DOCU's trailing twelve month trading history, with the $77 strike highlighted in orange:
BILL Holdings Inc (Symbol: BILL) options are showing a volume of 33,852 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 105.6% of BILL's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $30 strike put option expiring August 29, 2025, with 6,638 contracts trading so far today, representing approximately 663,800 underlying shares of BILL. Below is a chart showing BILL's trailing twelve month trading history, with the $30 strike highlighted in orange:
And Vertiv Holdings Co (Symbol: VRT) saw options trading volume of 65,723 contracts, representing approximately 6.6 million underlying shares or approximately 94.8% of VRT's average daily trading volume over the past month, of 6.9 million shares. Especially high volume was seen for the $120 strike call option expiring September 19, 2025, with 21,523 contracts trading so far today, representing approximately 2.2 million underlying shares of VRT. Below is a chart showing VRT's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for DOCU options, BILL options, or VRT options, visit StockOptionsChannel.com.
Also see:
Cheap Materials Shares
TALK Average Annual Return
ITT YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Wednesday Option Activity: DOCU, BILL, VRT

Investors in DocuSign Inc (Symbol: DOCU) saw new options become available today, for the October 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DOCU options chain for the new October 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $66.00 strike price has a current bid of $2.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $66.00, but will also collect the premium, putting the cost basis of the shares at $63.25 (before broker commissions). To an investor already interested in purchasing shares of DOCU, that could represent an attractive alternative to paying $70.60/share today.
Because the $66.00 strike represents an approximate 7% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 68%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.17% return on the cash commitment, or 35.37% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for DocuSign Inc, and highlighting in green where the $66.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $71.00 strike price has a current bid of $4.95. If an investor was to purchase shares of DOCU stock at the current price level of $70.60/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $71.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.58% if the stock gets called away at the October 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DOCU shares really soar, which is why looking at the trailing twelve month trading history for DocuSign Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DOCU's trailing twelve month trading history, with the $71.00 strike highlighted in red:
Considering the fact that the $71.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 46%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.01% boost of extra return to the investor, or 59.51% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 54%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $70.60) to be 52%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Top Stocks Held By Victor Mashaal
PESI Options Chain
CALC Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting DOCU Put And Call Options For October 3rd

Adobe ADBE shares have declined 9% in the past month. ADBE shares have plunged 25% year to date (YTD), underperforming the Zacks Computer and Technology sector’s return of 13.5% and the Zacks Computer – Software industry’s appreciation of 20.3%.
The drop in Adobe’s share price reflects modest revenue growth prospects in the near term, as the company continues to face stiff competition in the AI and Generative AI (GenAI) space from the likes of Microsoft MSFT-backed OpenAI, as well as a lack of monetization of its AI solutions. The challenging macroeconomic environment has been a headwind for Adobe’s prospects. These factors have negatively impacted Remaining Performance Obligations (RPO), which increased 11% on a constant currency basis while current RPO grew 10% in the second quarter of fiscal 2025.
Adobe’s AI business is minuscule compared with the likes of Microsoft and Alphabet GOOGL. Microsoft’s Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in the AI Copilot business. Alphabet’s focus on leveraging AI to drive growth is a key catalyst. AI is infused heavily across its offerings, including Search and Google Cloud. Adobe is also facing stiff competition from DocuSign DOCU in the document services & e-signature domain.
Adobe has underperformed Microsoft and Alphabet YTD, but outperformed DocuSign. While shares of Microsoft and Alphabet have returned 23.7% and 6.1%, respectively, DocuSign has declined 25.4%.
ADBE Stock’s YTD Performance
Image Source: Zacks Investment Research
Adobe shares are overvalued, as suggested by a Value Score of D.
In terms of Price/Book, Adobe is trading at 12.36X higher than the broader sector’s 10.75X.
Price/Book Ratio
Image Source: Zacks Investment Research
Adobe shares are now trading below the 50-day and 200-day moving averages, indicating a bearish trend.
ADBE Trades Below the 50-Day and 200-day SMAs
Image Source: Zacks Investment Research
Can Adobe’s Innovative Portfolio Boost Prospects?
Adobe’s second-quarter fiscal 2025 results indicate that the company is catching up through the expansion of its AI portfolio with GenStudio and Firefly Services. Adobe’s AI book of business from AI-first products, including Acrobat AI assistant, Firefly App and Services and GenStudio for Performance Marketing, is tracking ahead of the $250 million ending Annual Recurring Revenue (ARR) target by the end of fiscal 2025.
Adobe’s tools, like Acrobat AI Assistant and Adobe Express, are attracting business professionals and creators. Acrobat AI Assistant uses conversational interfaces to make it easier for users to read digital documents and gain insights within a short timeframe. Adobe Express is using AI to enable consumers to quickly design and publish content through conversational AI in an easy-to-use, all-in-one application. Adobe is integrating these solutions to facilitate a smoother creation-to-consumption process across mobile apps, web browsers and desktop offerings.
Adobe’s strategy of offering an AI-powered, comprehensive creative platform that extends from idea generation through creation to mass production and delivery is addressing the needs of Creative and Marketing Professionals. Firefly is enhancing the capabilities of Creative Cloud desktop applications. The Firefly App is attracting users for AI-powered content ideation, creation and production, and its support for third-party models, including from Alphabet division Google’s Imagen and Veo, Microsoft-backed OpenAI’s image generation and Black Forest Labs’ Flux, is a key catalyst. Adobe Firefly App availability on mobile is expected to further boost its popularity.
Adobe is leveraging Adobe Experience Platform (AEP) and native applications to deliver unified and personalized customer experiences. The launch of the AEP AI assistant enables teams across the business to interact with data smoothly and efficiently. The innovative solution helps customers leverage their first-party customer data and deliver more relevant, high-impact advertising experiences driven by direct customer relationships.
Adobe Offers Positive Guidance
Adobe now expects fiscal 2025 revenues between $23.5 billion and $23.6 billion ($21.51 billion in fiscal 2024), up from the previous guidance range of $23.3-$23.55 billion. Fiscal 2025 non-GAAP earnings are now expected between $20.50 per share and $20.70 per share ($18.42 per share in fiscal 2024), higher than the previous guidance of $20.20-$20.50 per share.
For fiscal 2025, Digital Media Annual Recurring Revenue is still expected to grow 11% year over year. Digital Media segment revenues are expected to be between $17.45 billion and $17.50 billion. Digital Experience segment revenues are expected between $5.8 billion and $5.9 billion, while Digital Experience subscription segment revenues are expected between $5.375 billion and $5.425 billion.
For fiscal 2025, the Zacks Consensus Estimate for earnings is pegged at $20.63 per share, unchanged over the past 30 days. The figure indicates 12% growth over fiscal 2024.
The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is pegged at $5.17 per share, unchanged over the past 30 days, suggesting 11.2% growth from the year-ago quarter.
Adobe Inc. Price and Consensus
Conclusion
Adobe’s focus on improving monetization of its AI tools is a positive for investors despite stretched valuation, macroeconomic challenges, and stiff competition. ADBE currently has a Zacks Rank #2 (Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Adobe Drops 9% in a Month: Should You Buy the Dip in ADBE Stock?

DocuSign (DOCU) closed at $67.14 in the latest trading session, marking a -2.96% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.3%.
The provider of electronic signature technology's stock has dropped by 5.93% in the past month, falling short of the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.84, indicating a 13.4% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $778.96 million, reflecting a 5.83% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.54 per share and a revenue of $3.16 billion, signifying shifts of -0.28% and +6.05%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, DocuSign boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 19.57. This valuation marks a discount compared to its industry average Forward P/E of 28.45.
Meanwhile, DOCU's PEG ratio is currently 8.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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DocuSign (DOCU) Dips More Than Broader Market: What You Should Know

Adobe ADBE shares closed at $365.79 on Friday, roughly 38% below the 52-week high of $587.75 it hit on Sept. 12, 2024. ADBE shares have appreciated 17.7% year to date (YTD), underperforming the Zacks Computer and Technology sector’s return of 9.6% and the Zacks Computer – Software industry’s return of 19%.
Since June 12, when Adobe reported its second-quarter fiscal 2025, shares dropped 11.5%. The drop reflects modest revenue growth prospects in the near term, as the company continues to face stiff competition in the AI and generative AI (GenAI) space from the likes of Microsoft MSFT-backed OpenAI, as well as a lack of monetization of its AI solutions.
Adobe’s AI business is minuscule compared with the likes of Microsoft and Alphabet GOOGL. Microsoft’s Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in AI Copilot business. Alphabet’s focus on leveraging AI to drive growth is a key catalyst. AI is infused heavily across its offerings, including Search, Google Cloud and Pixel. Adobe is also facing stiff competition from DocuSign DOCU in the document services & e-signature domain.
However, second-quarter fiscal 2025 results indicated that Adobe is catching up through the expansion of its AI portfolio with GenStudio and Firefly Services. Adobe’s AI book of business from AI-first products, including Acrobat AI assistant, Firefly App and Services and GenStudio for Performance Marketing, is tracking ahead of the $250 million ending Annual Recurring Revenue (ARR) target by the end of fiscal 2025. The company exited the fiscal second quarter with Digital Media ARR of $18.09 billion, up 12% year over year.
ADBE Stock’s Performance
Image Source: Zacks Investment Research
However, Adobe shares are overvalued, as suggested by a Value Score of C.
Adobe shares are now trading below the 50-day and 200-day moving averages, indicating a bullish trend.
ADBE Trades Below the 50-Day and 200-day SMAs
Image Source: Zacks Investment Research
So, what should investors do with Adobe shares? Let’s dig deep to find out.
Adobe’s Innovative Portfolio Boosts Prospects
Adobe’s tools, like Acrobat AI Assistant and Adobe Express, are attracting business professionals and creators. Acrobat AI Assistant uses conversational interfaces to make it easier for users to read digital documents and gain insights within a short timeframe. Adobe Express is using AI to enable consumers to quickly design and publish content through conversational AI in an easy-to-use, all-in-one application. Adobe is integrating these solutions to facilitate a smoother creation-to-consumption process across mobile apps, web browsers and desktop offerings. Adobe’s monthly active users across these categories surpassed more than 700 million users at the end of the second quarter of fiscal 2025.
Adobe’s strategy of offering an AI-powered, comprehensive creative platform that extends from idea generation through creation to mass production and delivery is addressing the needs of Creative and Marketing Professionals. Firefly is enhancing the capabilities of Creative Cloud desktop applications. The Firefly App is attracting users for AI-powered content ideation, creation and production, and its support for third-party models, including from Alphabet division Google’s Imagen and Veo, Microsoft-backed OpenAI’s image generation and Black Forest Labs’ Flux, is a key catalyst. Adobe Firefly App availability on mobile is expected to further boost its popularity.
Adobe is leveraging Adobe Experience Platform (AEP) and native applications to deliver unified and personalized customer experiences. The launch of AEP AI assistant enables teams across the business to interact with data smoothly and efficiently. The innovative solution helps customers leverage their first-party customer data and deliver more relevant high-impact advertising experiences driven by direct customer relationships.
Adobe Offers Positive Guidance
Adobe now expects fiscal 2025 revenues between $23.5 billion and $23.6 billion ($21.51 billion in fiscal 2024), up from the previous guidance range of $23.3-$23.55 billion. Fiscal 2025 non-GAAP earnings are now expected between $20.50 per share and $20.70 per share ($18.42 per share in fiscal 2024), higher than the previous guidance of $20.20-$20.50 per share.
For fiscal 2025, Digital Media Annual Recurring Revenue is still expected to grow 11% year over year. Digital Media segment revenues are expected to be between $17.45 billion and $17.50 billion. Digital Experience segment revenues are expected between $5.8 billion and $5.9 billion, while Digital Experience subscription segment revenues are expected between $5.375 billion and $5.425 billion.
For fiscal 2025, the Zacks Consensus Estimate for earnings is pegged at $20.60 per share, up by 14 cents over the past 30 days. The figure indicates 11.83% growth over fiscal 2024.
Adobe Inc. Price and Consensus
The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is pegged at $5.16 per share, up 1.8% over the past 30 days, suggesting 10.97% growth from the year-ago quarter.
Conclusion
Adobe’s focus on improving monetization of its AI tools is a positive for investors despite a premium valuation and stiff competition. ADBE currently has a Zacks Rank #2 (Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Indicator	TTM Median
P/E	16.97 28.98
Price/Sales	5.88 2.58
P/B	8.30 2.76
P/FCF	18.29 24.31

Indicator	TTM Median
ROE	76.10 15.33
ROA	30.42 6.66
Net Worth	16.76 0.98
Quick Ratio	0.00 1.53
Current Ratio	0.84 1.84

Indicator	TTM Median
Net Profit Margin	34.57 9.71
Operating Margin	3.88 11.07
Gross Margin	79.18 50.00
Return on tangible equity	114.95 27.59

Indicator	TTM Median
EPS	0.35 0.24
EPS Forecast	0.20 0.19
Revenue	736.00M 73.00M
Gross Profit	581.00M —
EBITDA	142.00M —

DocuSign, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Other ratios

Revenue