DocuSign (NASDAQ:DOCU) saw its shares plummet 14.96% in after-hours trading on Thursday, despite reporting better-than-expected first-quarter earnings and raising its full-year revenue guidance. The sharp decline suggests that investors may be focusing on other aspects of the company's performance or outlook.

For the first quarter of fiscal 2026, DocuSign reported earnings of $0.90 per share, surpassing the analyst consensus estimate of $0.81. Revenue came in at $763.7 million, beating the Street estimate of $748.13 million and representing a 7.62% increase from the same period last year. The company's subscription revenue, which makes up the bulk of its income, grew by 8% year-over-year to $746.2 million.

Despite the strong quarterly results and an increase in its share repurchase program by $1 billion, investors appeared to react negatively to the company's outlook. DocuSign raised its fiscal 2026 revenue guidance to a range of $3.15 billion to $3.16 billion, up from its previous forecast of $3.13 billion to $3.14 billion. However, this guidance may not have met the market's higher expectations. Additionally, concerns about the company's growth rate and competitive position in the evolving digital signature market could be contributing to the stock's after-hours decline.