Docusign Stock Plummets Despite Beat-And-Raise Quarter But Retail Goes All-Out Into The Stock

2025-06-06 06:09:30

(MENAFN- AsiaNet News)

DocuSign, Inc. (DOCU) stock plummeted in Friday's premarket session despite the cloud platform provider's better-than-expected quarterly results, but retail traders rallied behind the company.

The company also raised its full-year revenue forecast. Some of the stock weakness may have to do with the subpar quarterly billings.

DocuSign's board authorized a new buyback program to buy up to $1 billion.

The San Francisco, California-based company's platform allows individuals and businesses to sign and share documents electronically.

Retail sentiment toward DocuSign stock stayed 'extremely bullish' (99/100) by early Friday, with the message volume also staying at 'extremely high' levels.

DOCU sentiment and message volume as of 5:15 a.m. ET, June 6 | source: Stocktwits

A bullish user said,“How can you not like this buying opportunity?? What a gift!,” referring to the after-hours slump.

Another user said they bought the dip, keeping fingers crossed.

DocuSign reported adjusted earnings per share (EPS) of $0.90 for the first quarter of fiscal year 2026, up from $0.82 earned a year ago and ahead of the Finchat-compiled consensus of $0.91.

Revenue climbed 8% year over year (YoY) to $763.7 million versus the $748.92-million average analysts' estimate and the $745 million-$749 million guidance.

Billings climbed 4% to $739.6 million, trailing the company's forecast of $741 million to $751 million.

CEO Allan Thygesen said,“Q1 was an important quarter for Docusign's long-term transformation as we delivered on an ambitious product roadmap and surpassed 10,000 Intelligent Agreement Management customers.”

The company's second-quarter revenue guidance was in line with the consensus, and it marginally upped its 2026 revenue guidance to $3.151 billion-$3.163 billion from $3.129 billion-$3.141 billion. The new full-year revenue guidance exceeded the $3.137 billion consensus.

DocuSign stock plunged over 18% to $75.93 in Friday's early premarket session, while it is up over 3% year-to-date. If the premarket losses are sustained in Friday's session, the stock could be on track for its worst day in more than two years.

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