By Connor Hart

Shares of DocuSign climbed Friday following what analysts called a strong and healthy fiscal fourth quarter, which benefited from the company's new artificial-intelligence-enabled offerings.

The stock was recently trading 18% higher, at $87.98. Shares have rallied 55% in the past 52 weeks, though they have edged lower since the start of the year.

After the bell Thursday, the e-signature company reported higher-than-expected profit and sales for its three months ended Jan. 31, boosted by the ramp-up of its AI-enabled platform, DocuSign Intelligent Agreement Management.

DocuSign IAM represented more than 20% of direct new customer deals in the recent quarter, Chief Executive Allan Thygesen said on a call with analysts. "Customer demand continues to exceed our expectations, indicating strong product market fit in this segment," he said.

J.P. Morgan analysts said in a research note that they see a potentially promising new product cycle emerging for DocuSign thanks to its IAM platform. However, they noted investors will likely need to have patience for IAM to translate into results and materially diversify the business.

DocuSign's fiscal 2026 outlook calls for the platform to continue gaining momentum, especially with small- and medium-sized customers, Thygesen said. The company guided for sales of $3.13 billion to $3.14 billion in its current fiscal year, just shy of the $3.15 billion that analysts polled by FactSet had expected.

Analysts had mixed reactions to the guidance.

Wedbush analysts said in a research note that DocuSign "provided solid FY26 guidance across the board as its IAM strategy continues to pick up." On the other hand, the guidance struck UBS analysts "as a bit light, even if it's intended to be conservative, especially given the solid 4Q/Jan performance."

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 14, 2025 13:38 ET (17:38 GMT)

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