Top 10 Stocks to Buy According to Jericho Capital Asset Management

3. DocuSign, Inc. (NASDAQ:DOCU)

Number of Hedge Fund Holders as of Q4: 51

Jericho Capital Asset Management’s Equity Stake: $427.64 Million 

DocuSign, Inc. (NASDAQ:DOCU), a leading provider of electronic agreement solutions, continues to expand its global reach, serving approximately 1.7 million clients across 180 countries as of 2025. The company ensures compliance with key regulations, including the U.S. ESIGN Act and the European Union’s eIDAS framework, making its digital signatures legally recognized and secure. In fiscal 2025, the company launched its AI-powered agreement management platform, DocuSign IAM, which has gained strong traction among customers. CEO Allan Thygesen highlighted the company’s revenue growth and profitability, emphasizing its well-positioned future in the digital agreement industry.

For the fourth quarter of fiscal 2025, DocuSign, Inc. (NASDAQ:DOCU) reported a total revenue of $776.3 million, marking a 9% year-over-year increase, with subscription revenue contributing $757.8 million. Billings grew by 11% to $923.2 million, reflecting strong customer demand. The company’s net income per diluted share rose to $0.39 from $0.13 in the previous year. Operating cash flow was $307.9 million, up from $270.7 million the previous year, with free cash flow reaching $279.6 million. By the end of the quarter, DocuSign held $1.1 billion in cash, cash equivalents, and investments and repurchased $161.7 million in common stock.

For the full fiscal year 2025, DocuSign, Inc. (NASDAQ:DOCU) generated $2.98 billion in total revenue, an 8% year-over-year increase, driven by $2.90 billion in subscription revenue. Billings reached $3.1 billion, growing 7% from the previous year. The company maintained a strong gross margin at 79.1%. Net income per diluted share also saw a significant increase, reaching $5.08 compared to $0.36 in FY24. The company also expanded its share repurchase program, buying back $683.5 million worth of stock compared to $145.5 million in the previous year.

As businesses increasingly adopt electronic signatures and automated workflows, DocuSign, Inc. (NASDAQ:DOCU) remains a key player in modernizing contract processes globally. With a solid financial foundation, a growing customer base, and a commitment to innovation, the company is well-prepared to capitalize on emerging opportunities in the industry, making it a top stock to buy according to Jericho Capital Asset Management.