Docusign (NASDAQ:DOCU) just pulled off a major win, skyrocketing 18% at 11.40am today, after delivering a fiscal Q4 that crushed expectations. The e-signature powerhouse posted adjusted earnings of 86 cents per share, topping forecasts, while revenue jumped 9% year-over-year to $776.3 million. Billings climbed 11% to $932.2 million, showing strong demand even as the company's fiscal 2026 revenue guidance of $3.129 billion to $3.141 billion landed slightly below Wall Street's $3.15 billion estimate. Investors didn't seem to mindDocusign's rapid expansion into AI-driven contract management is turning heads, and the market is buying in.

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CEO Allan Thygesen called fiscal 2025 a transformative year, and for good reason. Docusign rolled out AI-powered agreement tools, workflow automation, and developer integrations that are making its platform stickier than ever. Free cash flow surged to $279.6 million, and analysts are taking notice. Citi just upped its price target to $115, betting on Docusign's ability to keep accelerating billings and push deeper into enterprise automation. The AI-powered IAM platform is already gaining traction, and customers don't seem to mind paying a premium for the added capabilities.

Looking ahead, Docusign has all the right ingredients for continued momentumrising enterprise adoption, a growing suite of AI-driven tools, and a subscription-based model that keeps cash flowing. While revenue guidance came in a touch soft, the bigger picture remains intact: digital agreements are the future, and Docusign is positioning itself as the go-to player in the space. For investors, that's a bet worth considering.