• In early February 2026, DocuSign came under pressure as part of a broader software sector sell-off tied to concerns about artificial intelligence reshaping specialized software markets.
• The release of Anthropic’s AI-powered legal automation tools intensified worries that new AI capabilities could encroach on DocuSign’s core workflows and weaken traditional SaaS models.
• We’ll now look at how these AI disruption fears, particularly around Anthropic’s legal tools, may influence DocuSign’s broader investment narrative.

Find 53 companies with promising cash flow potential yet trading below their fair value.

What Is DocuSign's Investment Narrative?

To own DocuSign today, you really have to believe that digital agreements remain a must‑have infrastructure layer, and that the company’s Intelligent Agreement Management and Iris AI can keep it relevant as workflows become more automated. The recent 10.7% share price drop after Anthropic’s legal tools launch sharply refocused attention on a key risk: AI models that can read, draft and route contracts might reduce the need for standalone eSignature and CLM software if DocuSign’s own AI does not keep pace. Near term, investors had been watching for progress on IAM adoption, earnings growth and execution on partnerships with platforms like Microsoft and Salesforce. Those catalysts still matter, but this news effectively elevates competitive AI pressure to the forefront of the story.

However, there is one competitive risk in particular that investors should not ignore. Despite retreating, DocuSign's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly US$70 to about US$118, showing how differently people see DocuSign’s potential. Set that against the recent AI driven sell off, and it becomes even more important to compare these viewpoints with the company’s execution on its own AI roadmap and contract automation ambitions.

Explore 7 other fair value estimates on DocuSign - why the stock might be worth over 2x more than the current price!

Build Your Own DocuSign Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DocuSign research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free DocuSign research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DocuSign's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.