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Investing.com - RBC Capital raised its price target on DocuSign Inc. (NASDAQ:DOCU) to $95 from $90 while maintaining a Sector Perform rating following the company’s second-quarter results. According to InvestingPro analysis, DocuSign currently trades at a P/E ratio of 14, with data suggesting the stock may be undervalued relative to its Fair Value.
DocuSign reported Q2 results that exceeded consensus expectations and guidance across revenue, subscription revenue, billings, and non-GAAP operating margin metrics. The company maintains impressive gross profit margins of 79.5% and shows strong financial health, earning a "GREAT" overall score from InvestingPro. The company’s net revenue retention rate improved to 102%, up from 101% in the previous quarter.
RBC Capital noted that DocuSign saw strength in its core eSignature product and showed early signs of traction with its Identity and Access Management (IAM) offerings. Despite these positive indicators, the analyst firm remains in "wait and see mode" regarding the company’s progress. InvestingPro subscribers have access to 12 additional key insights about DocuSign’s valuation and financial health metrics.
DocuSign provided third-quarter guidance above consensus expectations, except for billings, which the company attributed to expected timing headwinds. The company also raised its fiscal year 2026 guidance above street estimates.
While acknowledging encouraging IAM adoption metrics, RBC Capital maintained its Sector Perform rating on DocuSign shares, indicating a neutral stance on the stock’s near-term performance potential.
In other recent news, DocuSign Inc . reported robust financial results for Q2 2026, with earnings and revenue figures surpassing analyst expectations. The company achieved earnings per share of $0.92, which exceeded the consensus estimate of $0.85. Revenue came in at $801 million, reflecting a 9% growth and surpassing the anticipated $780.1 million. Additionally, billings reached $818 million, growing 13% and significantly outperforming the expected $762.5 million. Following these strong results, Evercore ISI adjusted its price target for DocuSign, raising it to $92 from $90, while maintaining an "In Line" rating. This adjustment reflects confidence in the company’s recent performance. These developments highlight DocuSign’s ability to exceed market expectations and maintain its growth trajectory.
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