DocuSign Inc. (NASDAQ:DOCU) stock fell in premarket trading Friday after the electronic signature and agreement management company reported first-quarter fiscal 2027 results that topped Wall Street estimates but issued second-quarter guidance largely in line with expectations and drew a cautious response from analysts.

Revenue, Earnings Beat Estimates

DocuSign reported first-quarter revenue of $830.2 million, up 9% from a year earlier and above analysts’ estimates of $824.8 million.

Adjusted earnings were $1.09 per share, exceeding consensus estimates of 99 cents per share.

The company posted an operating margin of 32% and a free cash flow margin of 35%, reflecting continued profitability and strong cash generation. Net cash provided by operating activities totaled $321.7 million, while free cash flow was $289.4 million.

DocuSign repurchased $318 million of its common stock during the quarter, marking the largest quarterly share buyback in the company’s history.