Doximity (DOCS) AI Stock Analysis

• Market Cap: $12.45B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 57.1
• Beta (1Y): 1.35
• Revenue Growth: 19.45%
• EPS Growth: 46.46%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.36
• Shares Outstanding: 136,400,250
• 10 Day Avg. Volume: 1,147,950
• 30 Day Avg. Volume: 1,351,511
• PEG Ratio: 0.92
• Price to Book (P/B): 10.01
• Price to Sales (P/S): 19.01
• P/FCF Ratio: 40.65
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 19.52
• Enterprise Value/Gross Profit: 21.65
• Enterprise Value/Ebitda: 44.42
• 1Y Price Target: $71.38
• Price Target Upside: 7.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 75 Outperform
• Price Target: $77.00 ▲(15.82% Upside)

Doximity's overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust growth and operational efficiency. However, the high valuation and technical indicators suggest caution, with potential short-term weakness and overvaluation concerns. The absence of immediate revenue from recent acquisitions and policy uncertainties also weigh on the score.

Positive Factors

Revenue Growth

Doximity's consistent revenue growth indicates strong market demand and effective business strategies, enhancing its long-term market position.

Cash Flow Generation

Strong cash flow growth supports Doximity's ability to invest in new opportunities and maintain financial stability, crucial for sustainable growth.

Product Innovation

The AI Scribe's success enhances Doximity's product offerings, potentially increasing user engagement and customer retention over the long term.

Negative Factors

Policy Uncertainty

Policy uncertainties may affect healthcare spending, posing risks to Doximity's revenue stability and growth prospects in the medium term.

Revenue Contribution from Acquisitions

The lack of immediate revenue from Pathway could delay expected financial benefits, impacting short-term financial performance and strategic goals.

Slowing Revenue Growth

Slowing revenue growth may signal market saturation or increased competition, potentially challenging Doximity's ability to sustain high growth rates.

Doximity Business Overview & Revenue Model

Company Description

Doximity (DOCS) is a leading digital platform for healthcare professionals in the United States, primarily serving physicians and healthcare providers. The company operates in the healthcare technology sector, offering a suite of tools that facilitate communication, collaboration, and access to medical information. Doximity's core products include a secure professional networking site, telehealth services, and a platform for continuous medical education, all designed to enhance the efficiency and effectiveness of healthcare delivery.

How the Company Makes Money

Doximity generates revenue through a diversified business model primarily based on subscription services and advertising. The company offers premium subscription plans to healthcare organizations, which provide access to advanced features and analytics tools. Additionally, Doximity earns significant revenue from its advertising services, targeting pharmaceutical companies and medical device manufacturers looking to reach healthcare professionals. These partnerships enable Doximity to leverage its extensive user base for targeted marketing campaigns. The company may also benefit from collaborations with healthcare institutions and universities, enhancing its offerings and expanding its market reach.

Doximity Financial Statement Overview

Summary

Doximity exhibits strong financial health with high profitability, low leverage, and robust cash flow generation. The company maintains a high gross profit margin of 90.14% and a solid net profit margin of 39.88%. The low debt-to-equity ratio of 0.01 indicates minimal financial risk, and the cash flow is impressive with a free cash flow growth rate of 8.46%.

Income Statement

Doximity demonstrates strong profitability with a high gross profit margin of 90.14% and a solid net profit margin of 39.88% in TTM. The revenue growth rate of 3.37% in TTM indicates steady growth, although it has slowed compared to previous years. EBIT and EBITDA margins are robust at 42.09% and 43.94%, respectively, showcasing efficient operations.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. Return on equity is strong at 22.94%, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

Doximity's cash flow is impressive with a free cash flow growth rate of 8.46% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.84 and free cash flow to net income ratio of 0.98 highlight efficient cash flow management and conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	589.64M	570.40M	475.42M	419.05M	343.55M	206.90M
Gross Profit	531.52M	514.52M	424.75M	365.56M	303.76M	175.70M
EBITDA	259.09M	240.76M	182.08M	135.39M	118.58M	57.01M
Net Income	235.13M	223.19M	147.58M	112.82M	154.78M	50.21M
Balance Sheet
Total Assets	1.20B	1.26B	1.08B	1.14B	991.36M	251.72M
Cash, Cash Equivalents and Short-Term Investments	840.97M	915.66M	762.90M	841.00M	798.11M	142.53M
Total Debt	11.84M	12.40M	14.55M	15.64M	1.09M	1.25M
Total Liabilities	178.85M	181.68M	177.98M	170.77M	112.76M	184.98M
Stockholders Equity	1.03B	1.08B	901.40M	966.12M	878.59M	66.74M
Cash Flow
Free Cash Flow	287.34M	266.74M	178.29M	173.42M	120.88M	78.36M
Operating Cash Flow	294.12M	273.26M	184.10M	179.60M	126.58M	82.97M
Investing Cash Flow	-56.56M	-29.30M	31.19M	-59.92M	-640.57M	-70.42M
Financing Cash Flow	-211.74M	-131.14M	-276.52M	-74.46M	560.41M	5.41M

Doximity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.48
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Negative. The current price of 66.48 is below the 20-day moving average (MA) of 68.78, below the 50-day MA of 69.66, and above the 200-day MA of 62.45, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOCS.

Doximity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	―	$12.45B	57.07	24.25%	―	19.45%	46.46%
OMCL	―	$1.36B	59.94	1.87%	―	6.39%	―
TEM	―	$15.04B	―	-97.95%	―	59.84%	76.46%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TDOC	―	$1.45B	-6.43	―	―	-2.37%	77.84%
EVH	―	$831.96M	-4.41	-13.38%	―	-6.71%	-71.40%
DH	―	$408.92M	―	-64.27%	―	-5.24%	23.59%

Doximity Corporate Events

Doximity Holds Annual Stockholders Meeting, Elects Directors

On August 28, 2025, Doximity, Inc. held its Annual Meeting of Stockholders where three key proposals were voted on. The stockholders elected two directors, ratified Deloitte & Touche LLP as the accounting firm for the fiscal year ending March 31, 2026, and approved, on a non-binding basis, the compensation of the company’s named executive officers for the fiscal year ended March 31, 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future financial and strategic direction.

The most recent analyst rating on (DOCS) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Doximity stock, see the DOCS Stock Forecast page.

Doximity Announces Leadership Change with New Appointments

On August 13, 2025, Doximity announced that its General Counsel, Corporate Secretary, and Chief Compliance Officer, Jennifer Chaloemtiarana, will step down from her roles effective August 29, 2025, with John Vaughan taking over these positions. Chaloemtiarana will continue in an advisory role until November 17, 2025, after which she will receive post-employment benefits as per her offer letter.

The most recent analyst rating on (DOCS) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Doximity stock, see the DOCS Stock Forecast page.

Doximity’s Earnings Call Highlights Growth and AI Advances

Doximity’s recent earnings call conveyed a strong sense of optimism, underpinned by robust financial performance and strategic advancements in AI technology. The company showcased significant user engagement growth and introduced new AI-driven tools, despite facing some challenges like a slight decline in gross margin and policy uncertainties. Overall, the sentiment was positive, focusing on future growth and innovation.

Doximity Reports Strong Q1 Earnings with Revenue Growth

Doximity, Inc. is a leading digital platform for U.S. medical professionals, offering tools for collaboration, career management, and virtual patient visits. The company reported strong financial results for the first quarter of fiscal 2026, with significant growth in revenue and cash flow. Key highlights include a 15% increase in total revenue to $145.9 million and a 52% rise in free cash flow to $60.1 million. The company’s AI suite showed remarkable growth, expanding fivefold year-over-year, and over 630,000 prescribers utilized its workflow tools. Doximity also completed the acquisition of Pathway Medical, enhancing its service offerings. Looking ahead, Doximity projects continued revenue growth, with guidance set between $628 million and $636 million for the fiscal year ending March 31, 2026, reflecting its optimistic outlook on future performance.