DocuSign's Solid Q3 Performance: A Closer Look at Earnings
Highlights
- Revenue: $818M (+8% YoY)
- Subscription revenue: $801M (+9% YoY)
- Billings: $829M (+10% YoY)
- Non-GAAP Operating Margin: 31%
- Free cash flow: $263M (+25% YoY)
- Dollar Net Retention Rate: 102%
- Share repurchases: $215M (largest quarterly buyback)
- International revenue: 30% of total revenue (+14% YoY)
DocuSign has reported a robust third quarter for fiscal year 2026, demonstrating substantial growth and operational efficiency. The company generated $818 million in revenue, marking an 8% increase from the previous year. A highlight of this performance is the subscription revenue, which grew by 9% to reach $801 million.
The company also achieved $829 million in billings, a 10% increase year-over-year. The non-GAAP operating margin was recorded at a solid 31%, and the free cash flow saw a significant rise of 25% year-over-year, amounting to $263 million. This strong free cash flow allowed DocuSign to conduct its largest quarterly share repurchase to date, totaling $215 million.
DocuSign's dollar net retention rate has improved, sitting at 102%, which underlines the steady demand and effective sales execution for its products. The international segment of the business has grown to represent 30% of total revenue, with a 14% year-over-year growth, signaling successful global expansion.
This quarter's performance underscores DocuSign's continued focus on core strategic priorities, including product innovation and operational efficiency, setting a solid foundation as they pursue further growth opportunities.