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Docusign stock surges nearly 18% after AI product is fastest-growing in company history

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Shares of Docusign Inc. (NASDAQ: DOCU) surged nearly 18% on Friday, after the electronic signature service reported strong fourth-quarter earnings that beat expectations, partially driven by its new artificial intelligence-enabled platform, which it introduced last year.

The e-signature company reported earnings of 86 cents per share, beating forecasts of 85 cents, with revenue coming in at $776 million, $15 million over forecasts for the fourth quarter of fiscal 2025, ending January 31.

“Fiscal 2025 was a transformative year for Docusign,” CEO Allan Thygesen said in an earnings statement. “We launched Docusign IAM, our AI-powered agreement management platform, which is driving rapid traction with customers . . . We’re well positioned to pursue the significant opportunity ahead.”

Docusign’s Intelligent Agreement Management (IAM) is an AI-powered platform that enables businesses to create, manage, and gain insights from their agreements in a full-suite, end-to-end platform, resulting in faster workflows and minimized risks. DocuSign AI uses both traditional AI to analyze existing data and content, and generative AI to create new content, such as text, based on patterns learned from existing data.

In his earnings remarks, Thygesen said IAM has quickly become the fastest-growing new product in Docusign’s history, and the company expects IAM to account for low double-digits of the company’s total growth by Q4.

“It’s tremendously valuable,” he told CNBC on Friday. “It’s opening a treasure trove of data . . . We’re seeing excellent pickup.”

Another good sign for the company: Docusign is collaborating with Microsoft and Google, which are two of its biggest partners. Both integrate Docusign deeply into their office suites.

Docusign’s customers number 1.6 million, and 1 billion people have used the service in over 180 countries, including 95% of Fortune 500 companies. The service is available in 44 languages for document signers and 14 languages for those sending documents, according to the company’s website.

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