Weak billings guidance overshadowed a strong quarterly earnings beat
DocuSign Inc (NASDAQ:DOCU) stock is sinking, last seen down 17.1% at $76.99, despite the e-signature company reporting fiscal first-quarter earnings of $0.90 per share on $763.7 million in revenue, exceeding estimates of $0.81 and $747 million, respectively. Billings of $739.6 million missed the $746.2 million consensus, stoking concerns about decelerating demand, while the firm's 2026 billing guidance disappointed
DOCU is pacing for its worst single-session drop since March 2023 and has erased its year-to-date lead, now down 13.8% in 2025. The stock is also trading below its 80-day moving average, which had provided a key layer of support in early March and late April.
Bearish sentiment is building. At least five analysts slashed their price targets following the report, including UBS, which lowered its objective to $80 from $85. Options volume is running hot, with more than 21,000 contracts exchanged -- 30 times the intraday norm -- led by heavy interest at the weekly 6/6 80-strike put expiring today.