DocuSign delivered a solid QQ3 2026 performance, underpinned by ongoing demand for IAM and eSignature, solid profitability, and meaningful free cash flow. Revenue reached $818.35 million, up 8% year over year, with billings at $829 million, up 10% YoY, illustrating continued demand and renewal strength. Non-GAAP operating margin stood at 31.4%, and free cash flow reached $263 million (32% margin), supporting a sizeable $215 million share repurchase—the largest quarterly buyback in the company’s history. Importantly, DocuSign disclosed a strategic shift toward ARR-based disclosures, signaling a longer-term, more durable view of growth and profitability. International revenue now represents roughly 30% of total revenue, and IAM surpassed 25,000 direct and digital customers, reinforcing the platform’s role as the growth engine and backbone of the company’s multi-year strategy.
Management emphasized three strategic pillars: (1) expanding IAM and eSignature adoption with a scalable go-to-market (GTM) motion, (2) accelerating platform evolution and AI innovation, and (3) driving operational efficiency to sustain double-digit growth. The company reaffirmed its long-term objective of sustainable, profitable, double-digit growth and outlined a path to ARR as the principal growth metric, with the transition expected to reduce quarter-to-quarter billings volatility and provide better visibility into long-run growth dynamics. While the near-term outlook remains constructive, management highlighted cloud data center migration costs as a roughly 1 percentage point gross margin headwind in Q4 and guided to full-year non-GAAP gross margins of 81.7%–81.8% with flat-to-low-single-digit margin trajectory into fiscal 2027 as migration costs ease. Investors should monitor ARR progression, IAM adoption rates by geography and department, renewal timing dynamics, and the evolution of the international mix as levers of sustainable growth.