Doximity (NYSE:DOCS) Announces Earnings Results

Doximity (NYSE:DOCS) issued its quarterly earnings data on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.13, FiscalAI reports. The company had revenue of $156.62 million during the quarter. Doximity had a net margin of 25.48% and a return on equity of 17.65%. The firm’s revenue was up 7.3% compared to the same quarter last year. During the same period last year, the business earned $0.36 EPS.

Here are the key takeaways from Doximity’s conference call:

• Q1 revenue rose 7% year over year to $157 million, exceeding the high end of guidance, while adjusted EBITDA reached $75 million, a 48% margin. Management raised full-year revenue guidance by $6 million to $671 million–$681 million.
• Doximity highlighted strong clinical AI validation, with its Ask product ranking first among U.S. models in the independent NOHARM study for low error rates and safety. The company now has 165 signed health-system AI clients, including Northwestern, Penn Medicine, and the University of Michigan.
• Clinician engagement continued to accelerate, with workflow prescribers up more than 30% year over year, AI prompt volume up 25% quarter over quarter, and AI Scribe users increasing tenfold in July. AI Search has generated more than two dozen initial customer programs and is expected to contribute more meaningfully to revenue beginning in Q3.
• Doximity is increasing AI-related spending, contributing to first-quarter gross-margin compression to 88% from 91% and full-year adjusted EBITDA guidance of a 47% margin. Management expects gross margins to remain in the mid- to high-80% range during the investment year.
• The pharma buying environment remains tight but more stable, with AI Search opening innovation, insights, and analytics budgets. However, Q2 revenue guidance implies only 1% year-over-year growth because of a difficult comparison and limited near-term AI Search revenue.

Doximity Trading Up 32.4%

Doximity stock traded up $6.69 during midday trading on Friday, reaching $27.35. 65,202,216 shares of the stock traded hands, compared to its average volume of 3,930,576. Doximity has a fifty-two week low of $17.15 and a fifty-two week high of $76.51. The firm has a market cap of $5.00 billion, a price-to-earnings ratio of 32.18, a PEG ratio of 7.50 and a beta of 1.29. The firm has a fifty day moving average price of $21.28 and a two-hundred day moving average price of $24.37.

Trending Headlines about Doximity

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported fiscal Q1 revenue of $156.6 million, up 7.3% year over year, and adjusted earnings of $0.29 per share. Revenue exceeded expectations, while the company’s profitability and 30.4% net margin remained notable. Doximity earnings report
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $671 million-$681 million, slightly above the analyst consensus of $670.4 million. The outlook reflects anticipated demand from pharmaceutical customers and continued adoption of Doximity’s AI capabilities. Doximity Q1 earnings and guidance
• Positive Sentiment: The CEO said Doximity’s clinical AI search generates roughly 10 times more revenue than it costs to operate, while AI-driven engagement is outperforming expectations. Investors view this as a potential source of future monetization that is not fully reflected in current forecasts. CNBC Doximity AI report
• Positive Sentiment: Analysts raised their targets: Piper Sandler maintained an overweight rating and lifted its target to $47 from $42, while JPMorgan raised its target to $31 from $26 but retained a neutral rating. Analyst target changes
• Neutral Sentiment: Doximity’s addition or reclassification within the Russell 1000 may broaden institutional visibility and affect index-related trading, but it does not directly change the company’s fundamentals. Russell 1000 reclassification
• Negative Sentiment: Adjusted earnings fell from $0.36 per share a year earlier, and some estimates showed a slight earnings miss. Higher AI investment is pressuring margins, while critics argue the rally may have moved ahead of near-term fundamentals and could reverse. Doximity rally analysis

Analyst Ratings Changes

Several brokerages have recently weighed in on DOCS. Weiss Ratings downgraded shares of Doximity from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, May 15th. Barclays reaffirmed an “equal weight” rating and set a $20.00 price target (down from $38.00) on shares of Doximity in a research note on Thursday, May 14th. Zacks Research raised shares of Doximity from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Morgan Stanley lowered their target price on Doximity from $49.00 to $35.00 and set an “overweight” rating for the company in a research note on Thursday, May 14th. Finally, Citigroup lowered Doximity to an “underperform” rating in a research report on Monday, June 29th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $31.86.

Insider Activity at Doximity

In other Doximity news, insider Siddharth Sitaram sold 2,444 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $20.41, for a total value of $49,882.04. Following the sale, the insider owned 90,706 shares in the company, valued at approximately $1,851,309.46. This trade represents a 2.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 31.80% of the company’s stock.

Hedge Funds Weigh In On Doximity

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Doximity by 99.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 796 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares during the period. Advisory Services Network LLC bought a new position in Doximity in the 3rd quarter valued at about $111,000. Farther Finance Advisors LLC increased its stake in Doximity by 35.7% during the 4th quarter. Farther Finance Advisors LLC now owns 1,539 shares of the company’s stock valued at $68,000 after buying an additional 405 shares during the period. Leonteq Securities AG acquired a new position in Doximity during the 4th quarter valued at about $78,000. Finally, Kestra Advisory Services LLC bought a new stake in shares of Doximity during the 4th quarter worth about $87,000. 87.19% of the stock is owned by institutional investors.

Doximity Company Profile

Doximity, trading as DOCS, operates a digital professional network and communications platform designed primarily for clinicians. Headquartered in San Francisco, the company connects physicians, nurse practitioners, physician assistants and other healthcare professionals, providing tools that streamline clinical communication, telehealth delivery and access to specialty-specific medical information. Its platform is positioned as a professional hub where clinicians manage their workflows, stay current with medical news and collaborate securely with peers.

The company’s offerings include secure messaging and video telehealth capabilities that enable clinicians to consult with patients and colleagues while protecting patient information.