Doximity (DOCS) AI Stock Analysis

• Market Cap: $12.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 57.6
• Beta (1Y): 1.33
• Revenue Growth: 19.45%
• EPS Growth: 46.46%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.36
• Shares Outstanding: 136,497,590
• 10 Day Avg. Volume: 1,340,929
• 30 Day Avg. Volume: 1,713,758
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $67.94
• Price Target Upside: -0.07% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 80 Outperform
• Price Target: $71.00 ▲(4.43% Upside)

Doximity's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust growth and strategic advancements in AI. While technical indicators show a positive trend, the high P/E ratio suggests potential overvaluation, slightly tempering the overall score.

Positive Factors

Financial Performance

DOCS reported excellent results with revenue and adjusted EBITDA well ahead of consensus estimates.

Market Expansion

The acquisition of Pathway AI adds a leading AI clinical reference tool to Doximity's suite, enhancing its offerings for physicians.

Product Innovation

DOCS continues to innovate with new AI products, solidifying its position as a strategic partner in the bio-pharma industry.

Negative Factors

Guidance Conservatism

Revised FY'26 guidance continues to contemplate significant conservatism with implied revenue growth of approximately 7% year-over-year.

Stock Compensation

Stock compensation dilution from Pathway acquisition and large incentive awards for AI development are expected to rise to high-teens percentage of revenue.

Doximity Business Overview & Revenue Model

Company Description

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical manufacturers and healthcare systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

How the Company Makes Money

Doximity generates revenue primarily through its subscription-based services, where healthcare organizations and pharmaceutical companies pay for access to its marketing, hiring, and telehealth solutions. The company offers marketing solutions that allow pharmaceutical companies to target specific groups of healthcare professionals with their promotional content. Additionally, Doximity provides hiring solutions enabling hospitals and health systems to recruit medical professionals more efficiently. Another significant revenue stream comes from its telehealth services, which facilitate virtual patient consultations, and are offered to healthcare providers on a subscription basis. Strategic partnerships with key players in the healthcare and pharmaceutical industries further bolster its revenue by expanding its reach and integrating its services into broader healthcare systems.

Doximity Financial Statement Overview

Summary

Doximity exhibits strong financial health characterized by high profitability, low leverage, and robust cash flow generation. The company is well-positioned in its industry with consistent revenue growth and efficient operations. While revenue growth has moderated, the company's financial stability and cash flow strength provide a solid foundation for future growth.

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	289.30M	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: Positive
• Last Price: 67.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Positive. The current price of 67.99 is above the 20-day moving average (MA) of 62.96, above the 50-day MA of 61.33, and above the 200-day MA of 58.81, indicating a bullish trend. The MACD of 1.89 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOCS.

Doximity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	80 Outperform	$12.57B	57.58	24.25%	―	19.45%	46.46%
OMCL	66 Neutral	$1.50B	66.33	1.87%	―	6.39%	―
TEM	65 Neutral	$13.26B	―	-97.95%	―	59.84%	76.46%
EVH	55 Neutral	$1.09B	―	-13.38%	―	-6.71%	-71.40%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
DH	49 Neutral	$557.10M	―	-64.27%	―	-5.24%	23.59%
TDOC	47 Neutral	$1.38B	―	-14.18%	―	-2.57%	79.86%

Doximity Corporate Events

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.

Doximity Co-Founder Steps Down to Advisory Role

On June 10, 2025, Dr. Nathan Gross announced his decision to step down as Chief Strategy Officer of Doximity to transition into an advisory role effective June 16, 2025. Dr. Gross, a co-founder of the company, will continue to contribute his expertise under an Independent Contractor Agreement, with his stock options continuing to vest until September 2025. This transition marks a significant change in leadership but reflects confidence in Doximity’s strategic direction and its potential to become a generational company in the healthcare technology sector.