Key Stats for Doximity Stock
- Today’s Price Change: -10%
- Current Share Price: $53
- 52-Week High: $85
- DOCS Stock Price Target: $66
What Happened?
Doximity (DOCS) stock crashed more than 10% on Friday, despite reporting strong fiscal fourth-quarter (ended in March) results that beat earnings and revenue expectations.
The telehealth software company posted adjusted earnings per share of $0.38, above analyst estimates of $0.27, while revenue of $138.3 million exceeded the $134 million consensus.
However, investors focused on Doximity’s disappointing forward guidance rather than its solid quarterly performance.
Doximity’s outlook for the first quarter of fiscal 2026 fell short of Wall Street expectations. Projected revenue of $139-140 million missed the $143.4 million analyst estimate.
More concerning for DOCS stock investors was its full-year revenue guidance of $619-631 million, below the consensus estimate of $639.4 million.
See Doximity’s full revenue and earnings estimates (It’s free) >>>
What the Market Is Telling Us
The selloff in DOCS stock demonstrates how heavily investors weigh forward guidance over historical performance, especially for growth-oriented technology companies.
Despite Doximity reporting impressive metrics, including 49% adjusted EPS growth for the full fiscal year, record user engagement across all metrics, and over 620,000 prescribers using its workflow tools, the market’s reaction suggests concerns about the growth trajectory slowing.
The disappointing guidance is notable given Doximity’s recent investments in artificial intelligence capabilities. Doximity reported that AI features gained traction in fiscal 2025, with adoption rising fivefold year over year.
It highlighted the growing usage of its AI-powered tools, such as document analysis and clinical summarization, through Doximity GPT. However, these investments may be pressuring near-term profitability while their revenue benefits remain uncertain.
From a financial health perspective, DOCS stock investors can take some comfort in the company’s strong balance sheet. Cash and marketable securities totaled $915.7 million at quarter-end, up from $844.9 million in the previous quarter.
The company also maintained robust profitability metrics, including an adjusted operating margin of 49.1% and strong free cash flow of $97.0 million in Q4, representing a 56% year-over-year increase.
While the 10% decline erases year-to-date gains for DOCS stock, the market’s reaction appears focused on concerns about whether Doximity can sustain its growth momentum in an increasingly competitive telehealth landscape.
Moreover, investments in AI tools and platform enhancements suggest management believes these capabilities will drive future growth.
Find the best stocks to buy today that are even better than Doximity. (It’s free) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
