Why DocuSign Stock Popped on Friday

DocuSign (NASDAQ: DOCU) stock surged 15.4% through 10:30 a.m. ET Friday after reporting a modest earnings beat last night.

Heading into the fiscal fourth quarter 2025 report, analysts forecast DocuSign would earn $0.85 per share on $761.6 million in sales. In fact, earnings were $0.86 per share, and sales were $776.3 million.

Sales climbed 9% year over year, and billings rose 11%, foreshadowing even faster sales growth ahead. If there was "bad" news in the quarter, it's probably that DocuSign's $0.86 in profit was only a non-GAAP number, and that real earnings as calculated according to generally accepted accounting principles (GAAP) were only $0.39 per share. Then again, last year in Q4, DocuSign earned only $0.13, GAAP. So even just $0.39 is a 3x increase in profit!

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