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# DOCUSIGN Lifts FY27 Outlook as IAM Reaches 15.1% of ARR
- URL: https://redfiled.com/docusign-lifts-fy27-outlook-as-iam-reaches-15-1-of-arr/
- Published: 2026-09-04T14:40:27.000Z
- Updated: 2026-09-04T15:34:55.000Z
- Description: Q2 revenue rose 9% to $875.7 million, free cash flow hit $295.8 million, and Docusign raised full-year revenue and ARR guidance on AI-driven IAM adoption.
- Author: William Hayes
- Tags: DOCU, Earnings

**Docusign (DOCU)** reported second-quarter fiscal 2027 revenue of **$875.7 million**, up **9% year over year**, and raised its full-year guidance for revenue, annual recurring revenue and the share of ARR coming from its Intelligent Agreement Management platform. The quarter ended **July 31, 2026**, and results were filed with the SEC on **September 3, 2026**.

**IAM accounted for 15.1% of total ARR** at the end of July, up from **12.6%** three months earlier. The company now expects IAM to represent roughly **18% to 19% of total ARR** exiting the fourth quarter of fiscal 2027.

GAAP net income came to **$0.41 per basic share** and **$0.40 per diluted share**, against $0.31 and $0.30 a year earlier. On a non-GAAP basis, diluted earnings per share were **$1.16** versus **$0.92**, helped in part by a lower share count of 193 million against 211 million.

Cash generation improved sharply. Operating cash flow was **$334.5 million** compared with $246.1 million a year ago, and free cash flow reached **$295.8 million**, a **34% margin** versus 27%. The company ended the quarter with **$973.1 million** in cash, equivalents and investments, and bought back **$306.5 million** of stock, up from $201.5 million.

GAAP gross margin edged up to **79.7%** from 79.3%, while non-GAAP gross margin slipped to **81.7%** from 82.0%. Revenue growth included roughly **1.3 percentage points of benefit from foreign exchange**.

For the October quarter, Docusign guided to revenue of **$886 million to $890 million**, about **9% growth** at the midpoint, with a non-GAAP operating margin of **31.3% to 31.7%**. Full-year revenue is now seen at **$3,499 million to $3,507 million**, with ARR growth of **8.5% to 9.0%**.

CEO **Allan Thygesen** said the company is raising its outlook *as AI accelerates momentum across the business*, adding that its AI agents are now *securely executing contract workflows end-to-end*. During the quarter Docusign shipped an agentic AI assistant, pre-built agents, an Agent Studio and a **Model Context Protocol server**, with integrations spanning Slack, Perplexity, Google's Gemini Enterprise, Anthropic, OpenAI and Microsoft Copilot.

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This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.