Doximity’s Strong Q4 Performance Overshadowed by Cautious FY 2026 Outlook: Hold Rating Maintained

In a report released yesterday, Allen Lutz from Bank of America Securities maintained a Hold rating on Doximity (DOCS – Research Report), with a price target of $63.00.

Allen Lutz’s rating is based on Doximity’s recent financial performance and future guidance. The company reported strong fourth-quarter results, with revenue and EBITDA surpassing both the guidance range and consensus estimates. However, the initial guidance for fiscal year 2026, while aligned with expectations from recent surveys, came in below what the market anticipated. This cautious outlook reflects concerns about macroeconomic uncertainties and potential impacts from pharma tariffs, which could affect new product growth.
Despite the robust performance in the fourth quarter, the revenue and EBITDA guidance for fiscal year 2026 and the first quarter of fiscal year 2026 are below Street estimates. This conservative guidance suggests a prudent approach in the current economic climate. As a result, Allen Lutz maintains a Hold rating, reflecting a balanced view of the company’s strong current performance against the backdrop of a cautious future outlook.

Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, DENTSPLY SIRONA, and McKesson. According to TipRanks, Lutz has an average return of 4.7% and a 59.11% success rate on recommended stocks.

In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $55.00 price target.