Doximity (NYSE:DOCS) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Doximity (NYSE:DOCS) released its earnings results on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.13, FiscalAI reports. Doximity had a return on equity of 20.40% and a net margin of 30.40%.The business had revenue of $156.62 million for the quarter. During the same period in the prior year, the firm posted $0.36 EPS. Doximity’s revenue was up 7.3% compared to the same quarter last year.

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 Stock Performance

Shares of DOCS stock traded up $12.21 on Friday, hitting $32.88. The company’s stock had a trading volume of 24,559,404 shares, compared to its average volume of 3,948,833. The stock’s 50 day moving average is $21.16 and its 200-day moving average is $24.35. Doximity has a fifty-two week low of $17.15 and a fifty-two week high of $76.51. The company has a market capitalization of $6.01 billion, a PE ratio of 33.13, a PEG ratio of 7.85 and a beta of 1.29.

More Doximity News

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, while adjusted earnings of $0.29 per share exceeded the broader consensus estimate of $0.16. The company also raised its fiscal 2027 revenue outlook to $671 million-$681 million, above the $670.4 million analyst forecast. CNBC article
• Positive Sentiment: Management said its AI-powered search tool is generating approximately 10 times more revenue than its operating cost. Analysts believe AI-related revenue is not included in the company’s current forecasts, creating the possibility of upside to guidance if adoption continues. Barron’s article
• Positive Sentiment: The favorable AI economics and potential for an additional growth stream overshadowed concerns about the quarter’s modest growth rate and drove a strong investor reaction despite the mixed earnings comparisons.
• Neutral Sentiment: Doximity forecast second-quarter revenue of $170 million-$171 million, roughly in line with the $171.1 million consensus estimate. The guidance supports steady growth but does not, by itself, represent a major upward surprise.
• Negative Sentiment: Reported earnings declined from $0.36 per share a year earlier, and some data providers characterized the $0.29 result as a slight miss against a $0.30 estimate. Second-quarter revenue guidance also sits marginally below consensus, leaving execution and AI monetization important to the stock’s elevated growth expectations. Zacks article

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on DOCS. BTIG Research cut Doximity from a “buy” rating to a “neutral” rating in a research note on Thursday, May 14th. Jefferies Financial Group cut shares of Doximity from a “buy” rating to a “hold” rating and dropped their target price for the company from $51.00 to $19.00 in a report on Thursday, May 14th. Bank of America reaffirmed an “underperform” rating and issued a $20.00 price objective (down from $38.00) on shares of Doximity in a research report on Monday, June 29th. Citigroup cut shares of Doximity to an “underperform” rating in a report on Monday, June 29th. Finally, BMO Capital Markets reaffirmed a “market perform” rating and issued a $30.00 target price on shares of Doximity in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $30.10.

Insiders Place Their Bets

In other Doximity news, insider Siddharth Sitaram sold 2,444 shares of Doximity stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $20.41, for a total value of $49,882.04. Following the completion of the sale, the insider owned 90,706 shares in the company, valued at $1,851,309.46. The trade was a 2.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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. 31.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Doximity

Hedge funds and other institutional investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. lifted its position in shares of Doximity by 99.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 796 shares of the company’s stock valued at $35,000 after acquiring an additional 397 shares during the period. Parallel Advisors LLC increased its position in shares of Doximity by 111.0% in the first quarter. Parallel Advisors LLC now owns 2,560 shares of the company’s stock worth $60,000 after purchasing an additional 1,347 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of Doximity by 937.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,833 shares of the company’s stock worth $66,000 after purchasing an additional 2,560 shares during the period. Farther Finance Advisors LLC grew its stake in Doximity by 35.7% during the fourth quarter. Farther Finance Advisors LLC now owns 1,539 shares of the company’s stock worth $68,000 after buying an additional 405 shares in the last quarter. Finally, Leonteq Securities AG grew its stake in Doximity by 65.6% during the first quarter. Leonteq Securities AG now owns 2,912 shares of the company’s stock worth $68,000 after buying an additional 1,154 shares in the last quarter. 87.19% of the stock is currently owned by institutional investors and hedge funds.

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.