DocuSign (DOCU) Drops 10.3% as Anthropic Launches AI Legal Tools Impacting SaaS Workflows

In February 2026, DocuSign found itself in a challenging position as the software sector underwent a significant sell-off driven by apprehensions regarding artificial intelligence revolutionizing specialized software arenas. This article delves into how the emergence of new AI tools, particularly from Anthropic, is impacting DocuSign’s investment outlook.

• In early February 2026, DocuSign faced pressure amid a broader software industry decline related to fears that artificial intelligence might disrupt specialized software markets.
• The introduction of Anthropic’s AI-driven legal automation tools heightened concerns that cutting-edge AI capabilities could undermine DocuSign’s core functions, potentially destabilizing traditional Software as a Service (SaaS) models.
• We will now examine how these fears regarding AI disruption, especially concerning Anthropic’s legal tools, may shape the narrative surrounding DocuSign’s future investments.

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What Is DocuSign’s Investment Narrative?

Investing in DocuSign today necessitates a strong belief in the enduring necessity of digital agreements as a fundamental infrastructure layer. Furthermore, one must trust that the company’s Intelligent Agreement Management and Iris AI initiatives will remain relevant as workflows continue to evolve towards greater automation. The recent 10.7% drop in share prices following the launch of Anthropic’s legal tools spotlighted a significant risk: AI technologies capable of reading, drafting, and routing contracts may lessen the reliance on standalone eSignature and Contract Lifecycle Management (CLM) software, provided that DocuSign’s own AI offerings do not advance accordingly. In the short term, investors have been attentive to indicators like IAM adoption rates, earnings growth, and collaborative advancements with platforms such as Microsoft and Salesforce. While these factors continue to be crucial, the arrival of competitive AI heightens the urgency of the situation.

Moreover, it’s important for investors to consider a specific competitive risk that shouldn’t be overlooked. Although DocuSign’s stock has retreated, it might still be trading above its fair value, suggesting potential for further decline. Discover how much.

Exploring Other Perspectives

Various fair value estimates from the Simply Wall St Community range from approximately US$70 to roughly US$118, reflecting the diverse opinions on DocuSign’s future potential. In light of the recent sell-off driven by AI concerns, it is even more critical to weigh these differing perspectives against the company’s effectiveness in executing its AI initiatives and goals for contract automation.

Explore 7 other fair value estimates on DocuSign — discover why some analysts believe the stock could be worth more than double its current price!

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This article by Simply Wall St is general in nature.
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