Did DocuSign provide updated revenue guidance or profit margins for the remainder of FY2026, and what are the implications for valuation multiples?

Guidance update: In the Q2‑FY26 release DocuSign did not issue a new profit‑margin outlook – the company still projects a GAAP loss for the full fiscal year and expects negative adjusted EBITDA through FY26. However, it did lift its FY26 revenue guidance, moving the top‑line target up by roughly 4 % to a range of $2.14 billion‑$2.19 billion (vs. the prior $2.10 billion‑$2.15 billion). The guidance bump is driven by stronger-than‑expected adoption of its Agreement Cloud and higher‑value enterprise contracts, but the firm cautions that margin expansion will remain incremental as it continues to invest in AI‑enabled features and go‑to‑market expansion.

Valuation implications: The modest revenue upgrade narrows the discount on DocuSign’s EV/Revenue multiple. At the current market cap (~$5.8 bn) the FY26 forward EV/Revenue falls from ≈2.8× to ≈2.6×, a modest re‑rating that keeps the stock in line with high‑growth SaaS peers. Because profitability is still forecast to be negative, EV/EBITDA and PE remain “not applicable,” so the market is effectively pricing the company on growth rather than earnings. The upside to the valuation is limited; any further revenue lift would have to be sizable or accompanied by a clear pathway to positive adjusted EBITDA to justify a multiple expansion beyond the 2.5‑2.7× range.

Trading takeaway:

- If you’re short‑term: The stock is testing a near‑term support zone around the 50‑day EMA (~$9.40). A break below with volume would likely trigger a short‑bias, targeting the next low near $8.80 as the market digests the lack of margin guidance.

- If you’re long‑term: The incremental revenue lift and continued enterprise win‑rate support a buy‑on‑dip strategy on pullbacks to the 200‑day EMA (~$10.70). Keep an eye on any forward‑looking comment from management about margin improvement—if a credible path to positive adjusted EBITDA emerges, the forward EV/Revenue multiple could expand toward 3.0×, delivering upside of 10‑12 % from current levels.

In short, DocuSign has modestly raised FY26 revenue guidance but left profit‑margin expectations unchanged, leaving the valuation anchored on growth. Traders should position according to price action around key moving‑average support/resistance while monitoring any new margin commentary for a potential multiple re‑rating.