DocuSign shares drop 5% despite Q1 earnings beat due to cautious full-year outlook

DocuSign reported Q1 fiscal 2027 revenue of $830.2 million and adjusted EPS of $1.09, both beating analyst estimates. However, shares fell nearly 5% as the company’s full-year revenue guidance of $3.49-$3.502 billion and Q2 revenue outlook of $865-$869 million were seen as underwhelming. The company highlighted growth in its Intelligent Agreement Management platform, now 12.6% of annual recurring revenue, and announced a new chief product officer appointment. Investors remain cautious despite solid quarterly results due to modest growth expectations for the year.