Doximity (NYSE:DOCS) Announces Earnings Results

Doximity (NYSE:DOCS) released its earnings results on Thursday. The company reported $0.29 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 return on equity of 20.40% and a net margin of 30.40%.The firm’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period last year, the business posted $0.36 earnings per share.

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 Down 4.6%

Shares of DOCS traded down $1.00 during trading hours on Thursday, reaching $20.63. The stock had a trading volume of 20,751,150 shares, compared to its average volume of 2,828,654. The company has a market cap of $3.77 billion, a P/E ratio of 20.80, a P/E/G ratio of 7.85 and a beta of 1.29. Doximity has a 52 week low of $17.15 and a 52 week high of $76.51. The firm has a 50-day moving average of $21.16 and a 200 day moving average of $24.35.

Doximity News Roundup

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported fiscal Q1 earnings of $0.29 per share, above the broader analyst consensus of $0.16. Revenue reached $156.62 million, up 7.3% year over year, while net margin was 30.4% and return on equity was 20.4%. Doximity quarterly earnings report
• Positive Sentiment: Management’s fiscal 2027 revenue outlook of $671 million to $681 million is slightly above the $670.4 million consensus estimate, suggesting expectations for continued expansion despite the current quarter’s moderate growth rate.
• Neutral Sentiment: The earnings picture depends on which benchmark investors use: Doximity’s $0.29 EPS exceeded the $0.16 consensus cited by some outlets but fell short of Zacks’ $0.30 estimate. EPS also declined from $0.36 a year earlier. Doximity Q1 earnings lag estimates
• Negative Sentiment: Fiscal Q2 revenue guidance of $170 million to $171 million is narrowly below the $171.1 million consensus estimate. The relatively modest 7.3% year-over-year revenue growth and lower year-ago EPS may be weighing on investors focused on Doximity’s growth trajectory.
• Neutral Sentiment: Trading volume was unusually heavy, indicating significant repositioning around the earnings release. Options activity was also reported as unusually large ahead of the results, likely contributing to the stock’s pronounced after-hours volatility. Doximity unusually large options trading

Insider Transactions at Doximity

In other Doximity news, insider Siddharth Sitaram sold 2,444 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $20.41, for a total value of $49,882.04. Following the completion of the transaction, the insider directly owned 90,706 shares of the company’s stock, valued at approximately $1,851,309.46. The trade was a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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. Insiders own 31.80% of the company’s stock.

Hedge Funds Weigh In On Doximity

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

Wall Street Analyst Weigh In

Several research firms recently issued reports on DOCS. Canaccord Genuity Group decreased their price target on Doximity from $34.00 to $30.00 and set a “buy” rating on the stock in a report on Thursday, May 14th. Weiss Ratings downgraded shares of Doximity from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, May 15th. The Goldman Sachs Group cut their target price on shares of Doximity from $28.00 to $24.00 and set a “neutral” rating on the stock in a research report on Thursday, May 14th. Zacks Research raised shares of Doximity from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Finally, Leerink Partners lowered their price target on shares of Doximity from $31.00 to $25.00 and set an “outperform” rating for the company in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Doximity currently has a consensus rating of “Hold” and a consensus target price of $29.33.

About Doximity

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.