Doximity, Inc. Surpasses Earnings and Revenue Estimates

Doximity (NYSE:DOCS) delivered better-than-expected fourth-quarter earnings and revenue, but shares plunged 13% intra-day today after the company issued disappointing guidance for the upcoming quarter and full fiscal year, overshadowing strong financial and operational performance.

The digital platform for U.S. healthcare professionals posted Q4 adjusted EPS of $0.38, beating the $0.27 consensus. Revenue rose 17% year-over-year to $138.3 million, also ahead of the $134 million estimate.

Despite strong momentum—highlighted by record engagement and robust cash flow—investors focused on the weaker outlook. For fiscal Q1 2026, Doximity expects revenue of $139–$140 million, well below the $143.4 million forecast. Full-year 2026 revenue is projected between $619 million and $631 million, missing the $639.4 million consensus.

The company emphasized operational strength, with Q4 operating cash flow rising 54% year-over-year to $98.5 million and free cash flow up 56% to $97 million. For fiscal 2025, revenue increased 20% to $570.4 million.

While Doximity closed the year on a high operational note, the guidance reset triggered a sharp selloff, reflecting investor concern over slowing top-line growth in an otherwise cash-generative business.

Doximity, Inc. (NYSE:DOCS) is a digital platform for medical professionals, offering tools for networking, telehealth, and news updates. Despite its innovative services, the stock is currently trading at $79.23, with a target price of $59.26. This indicates a potential downside of approximately 25.20%, leading to a pessimistic outlook from investment analysts.

In contrast, Veeva Systems Inc. (NYSE:VEEV), a cloud-computing company serving the life sciences industry, is trading at $237.20. It has a target price suggesting a potential upside of 21.52%. This positive growth potential makes Veeva Systems more attractive to investors compared to Doximity.

Other companies in the healthcare technology sector, such as Certara, Inc. (CERT), HealthEquity, Inc. (HQY), R1 RCM Inc. (RCM), and GE HealthCare Technologies Inc. (GEHC), also face negative growth potentials. Among them, American Well Corporation (AMWL) has the most significant downside at -99.99%, highlighting the challenges in this competitive market.

The stark contrast in growth potentials between Doximity and its peers, particularly Veeva Systems, underscores the varying investor sentiments within the healthcare technology sector. While some companies show promise, others face significant hurdles, impacting their stock performance and investor confidence.

Doximity, Inc. (NYSE:DOCS) is a digital platform for medical professionals, offering tools for networking, telehealth, and news updates. Despite its innovative services, the stock is currently trading at $79.23, with a target price of $59.26. This indicates a potential downside of approximately 25.20%, leading to a pessimistic outlook from investment analysts.

In contrast, Veeva Systems Inc. (NYSE:VEEV), a cloud-computing company serving the life sciences industry, is trading at $237.20. It has a target price suggesting a potential upside of 21.52%. This positive growth potential makes Veeva Systems more attractive to investors compared to Doximity.

Other companies in the healthcare technology sector, such as Certara, Inc. (CERT), HealthEquity, Inc. (HQY), R1 RCM Inc. (RCM), and GE HealthCare Technologies Inc. (GEHC), also face negative growth potentials. Among them, American Well Corporation (AMWL) has the most significant downside at -99.99%, highlighting the challenges in this competitive market.

The stark contrast in growth potentials between Doximity and its peers, particularly Veeva Systems, underscores the varying investor sentiments within the healthcare technology sector. While some companies show promise, others face significant hurdles, impacting their stock performance and investor confidence.

Doximity (NYSE:DOCS) delivered a standout third-quarter performance, surpassing Wall Street expectations and driving its stock up more than 36% intra-day today. The digital platform for U.S. medical professionals saw strong revenue growth and impressive engagement metrics, reinforcing its momentum.

For the quarter, Doximity posted adjusted earnings per share of $0.45, significantly beating analysts’ projections of $0.34. Revenue surged 25% year-over-year to $168.6 million, exceeding the consensus estimate of $152.15 million.

The company also provided a bullish outlook. Fourth-quarter revenue is expected to range between $132.5 million and $133.5 million, well above analysts’ forecast of $123.8 million. For the full fiscal year 2025, Doximity anticipates revenue between $564.6 million and $565.6 million, significantly outpacing the consensus estimate of $540 million.

Growth in AI-driven tools played a key role in the company's success, with usage soaring 60% over the prior quarter. Additionally, Doximity’s newsfeed surpassed one million unique providers, signaling strong engagement among healthcare professionals.

With record user activity and a rapidly expanding suite of digital solutions, Doximity continues to solidify its position as a leading technology provider in the medical space, setting the stage for continued growth in 2025.

Doximity (NYSE:DOCS) delivered a standout third-quarter performance, surpassing Wall Street expectations and driving its stock up more than 36% intra-day today. The digital platform for U.S. medical professionals saw strong revenue growth and impressive engagement metrics, reinforcing its momentum.

For the quarter, Doximity posted adjusted earnings per share of $0.45, significantly beating analysts’ projections of $0.34. Revenue surged 25% year-over-year to $168.6 million, exceeding the consensus estimate of $152.15 million.

The company also provided a bullish outlook. Fourth-quarter revenue is expected to range between $132.5 million and $133.5 million, well above analysts’ forecast of $123.8 million. For the full fiscal year 2025, Doximity anticipates revenue between $564.6 million and $565.6 million, significantly outpacing the consensus estimate of $540 million.

Growth in AI-driven tools played a key role in the company's success, with usage soaring 60% over the prior quarter. Additionally, Doximity’s newsfeed surpassed one million unique providers, signaling strong engagement among healthcare professionals.

With record user activity and a rapidly expanding suite of digital solutions, Doximity continues to solidify its position as a leading technology provider in the medical space, setting the stage for continued growth in 2025.

• Analysts have raised the consensus price target for Doximity, Inc. (NYSE:DOCS) from $44.94 to $54, reflecting optimism about the company's performance.
• Evercore ISI upgraded Doximity to a buy rating, highlighting stronger engagement metrics and deeper client relationships.
• Doximity's stock has surged 101% year-to-date, driven by a 20% year-over-year revenue growth in Q2 2025 and the adoption of new AI-powered features.

Doximity, Inc. (NYSE:DOCS) operates a cloud-based digital platform designed for medical professionals in the U.S. The platform offers tools for collaboration, patient care coordination, virtual visits, and career management. It primarily serves pharmaceutical manufacturers and healthcare systems, making it a key player in the digital healthcare sector.

Analysts have shown increasing optimism about Doximity's stock over the past year. The consensus price target rose from $44.94 last year to $54 last month. However, there was a slight decrease from the last quarter's $56.14 to the current $54, indicating a minor adjustment in expectations. This reflects analysts' evolving views on the company's performance and market conditions.

Evercore ISI recently upgraded Doximity to a buy rating, led by analyst Elizabeth Anderson, due to stronger engagement metrics and deeper client relationships. Despite a recent pullback in share price, Doximity reported a 20% year-over-year revenue growth in Q2 2025, surpassing management's guidance. This growth was driven by increased user adoption and higher revenue per user.

Doximity's stock has surged 101% year-to-date, with a 34% jump following its latest earnings report. Stephens initiated coverage with an Equal Weight rating and a $55 price target, noting the company's growth profile in low-to-mid-teens percentages. The self-serve marketplace and new products are expected to drive revenue growth, though Stephens remains cautious about modeling above-consensus growth.

Mizuho initiated coverage with a Neutral rating and a $55 price target, acknowledging volatility in quarterly top-line growth due to pharmaceutical digital ad spending. Despite challenges, Mizuho is confident in Doximity's potential for low double-digit annual revenue growth. The widespread adoption of Doximity's platform by over 80% of U.S. doctors solidifies its competitive position, supported by strong financial performance and new AI-powered features.

• Analysts have raised the consensus price target for Doximity, Inc. (NYSE:DOCS) from $44.94 to $54, reflecting optimism about the company's performance.
• Evercore ISI upgraded Doximity to a buy rating, highlighting stronger engagement metrics and deeper client relationships.
• Doximity's stock has surged 101% year-to-date, driven by a 20% year-over-year revenue growth in Q2 2025 and the adoption of new AI-powered features.

Doximity, Inc. (NYSE:DOCS) operates a cloud-based digital platform designed for medical professionals in the U.S. The platform offers tools for collaboration, patient care coordination, virtual visits, and career management. It primarily serves pharmaceutical manufacturers and healthcare systems, making it a key player in the digital healthcare sector.

Analysts have shown increasing optimism about Doximity's stock over the past year. The consensus price target rose from $44.94 last year to $54 last month. However, there was a slight decrease from the last quarter's $56.14 to the current $54, indicating a minor adjustment in expectations. This reflects analysts' evolving views on the company's performance and market conditions.

Evercore ISI recently upgraded Doximity to a buy rating, led by analyst Elizabeth Anderson, due to stronger engagement metrics and deeper client relationships. Despite a recent pullback in share price, Doximity reported a 20% year-over-year revenue growth in Q2 2025, surpassing management's guidance. This growth was driven by increased user adoption and higher revenue per user.

Doximity's stock has surged 101% year-to-date, with a 34% jump following its latest earnings report. Stephens initiated coverage with an Equal Weight rating and a $55 price target, noting the company's growth profile in low-to-mid-teens percentages. The self-serve marketplace and new products are expected to drive revenue growth, though Stephens remains cautious about modeling above-consensus growth.

Mizuho initiated coverage with a Neutral rating and a $55 price target, acknowledging volatility in quarterly top-line growth due to pharmaceutical digital ad spending. Despite challenges, Mizuho is confident in Doximity's potential for low double-digit annual revenue growth. The widespread adoption of Doximity's platform by over 80% of U.S. doctors solidifies its competitive position, supported by strong financial performance and new AI-powered features.