DocuSign (NASDAQ: DOCU) shares surged 8.88% in after-hours trading on Thursday following the release of its better-than-expected second-quarter fiscal 2026 results and an optimistic outlook. The electronic signature and agreement cloud services provider demonstrated solid growth and profitability, driven by AI innovations and strategic go-to-market changes.

The company reported Q2 revenue of $800.6 million, up 9% year-over-year and surpassing analyst estimates of $780.2 million. Adjusted earnings per share came in at $0.92, comfortably beating the consensus forecast of $0.84. DocuSign's billings, a key metric indicating future revenue, grew 13% to $818.0 million, reflecting strong business momentum.

Looking ahead, DocuSign raised its full-year revenue guidance to between $3.189 billion and $3.201 billion, up from its previous projection of $3.15 billion to $3.16 billion. The company also provided an upbeat Q3 revenue forecast of $804 million to $808 million, ahead of analyst expectations. CEO Allan Thygesen highlighted that recent AI innovation launches and go-to-market changes led to strong performance across the eSignature, CLM, and IAM businesses, contributing to one of DocuSign's highest growth and profitability quarters in recent years. The company's push to ramp up artificial-intelligence offerings, particularly its Intelligent Agreement Management tool, is gaining traction with larger customers, positioning DocuSign for continued growth in the evolving digital agreement landscape.