DocuSign Shares Rise on Strong Q3 Earnings

DocuSign's stock surged nearly 20% following the release of its strong third-quarter fiscal 2025 results, which exceeded analysts' expectations. The company reported a profit of $62.4 million, or $0.30 per share, alongside revenue of $754.8 million, exceeding projections of $30.2 million and $745.26 million, respectively. CEO Allan Thygesen highlighted improvements in the core business, noting a 9% increase in billings to $752.3 million and a customer growth rate of 11% year-over-year. The firm raised its full-year revenue guidance to $2.959-$2.963 billion, up from prior estimates, and analysts responded positively, with several firms increasing their stock price targets. The strong performance was attributed to the momentum in its Intelligent Agreement Management platform and favorable market conditions for electronic signatures. Despite the positive outlook, some analysts maintain mixed recommendations on the stock due to its rapid appreciation over the past year.