DocuSign (NASDAQ: DOCU) posted quarterly results that exceeded Wall Street expectations and offered a full-year revenue outlook in line with consensus, yet the company's shares fell more than 7% intra-day on Friday.

The electronic signature and identity management firm reported third-quarter earnings of $1.01 per share, above analysts' estimates of $0.91. Revenue increased to $818.4 million, surpassing expectations of $807.09 million. Billings rose 10%, matching Street projections.

CEO Allan Thygesen said the quarter benefited from “growing customer investment into the IAM platform,” highlighting “continued strong execution and improved efficiency” that produced one of DocuSign's strongest growth and profitability quarters in two years.

For fiscal 2026, DocuSign now expects revenue of $3.208 billion to $3.212 billion—raised by $15 million at the midpoint and roughly in line with analysts' forecasts of $3.2 billion. The midpoint of billings guidance was also lifted by $44 million. The company said it will discontinue billings reporting and guidance beginning in fiscal 2027, transitioning to ARR as its primary growth metric.