Doximity (DOCS)
NYSE:DOCS
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Doximity
(NYSE:DOCS)
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Rating:73Outperform
Price Target:
$20.00
▼(-19.06% Downside)
Action:Upgraded
Date:05/15/26
The score is driven mainly by strong financial fundamentals (high margins, strong cash flow, minimal leverage). This is tempered by weak technicals (sharp downtrend and bearish momentum) and a cautious near-term outlook from the earnings call (slower FY27 growth and investment-driven margin pressure), while valuation appears reasonable on earnings but without dividend support.
Positive Factors
Free cash flow generation
Consistently strong cash generation (operating and free cash flow near $300M+) provides durable funding for R&D, AI compute, repurchases and strategic initiatives without reliance on new debt. High cash conversion underpins financial flexibility and resilience over the next 2–6 months.
Negative Factors
Slowing revenue growth guidance
Management's guidance signaling a material deceleration to ~4% growth implies weaker demand or limited near‑term monetization of new products. Slower top‑line expansion can strain return on recent investments and elongate payback periods for AI and commercial initiatives over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistently strong cash generation (operating and free cash flow near $300M+) provides durable funding for R&D, AI compute, repurchases and strategic initiatives without reliance on new debt. High cash conversion underpins financial flexibility and resilience over the next 2–6 months.
Read all positive factors
Doximity Key Performance Indicators (KPIs)
Doximity (DOCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.50B
Dividend YieldN/A
Average Volume (3M)2.72M
Price to Earnings (P/E)22.2
Beta (1Y)1.51
Revenue Growth13.05%
EPS Growth-12.34%
CountryUS
Employees827
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.04
Shares Outstanding133,811,550
10 Day Avg. Volume3,182,964
30 Day Avg. Volume2,724,715
Financial Highlights & Ratios
PEG Ratio-1.89
Price to Book (P/B)4.58
Price to Sales (P/S)6.76
P/FCF Ratio0.00
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue5.21
Enterprise Value/Gross Profit5.85
Enterprise Value/Ebitda13.68
Forecast
1Y Price Target
$26.78Price Target Upside8.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)1.46
Revenue Forecast (FY)$672.43M
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, coor...
How the Company Makes Money
Doximity generates revenue primarily by selling subscription-based and usage-based software and services to customers that want to engage clinicians and/or support clinical workflows. Key revenue streams include: (1) Pharmaceutical and life scienc...
Doximity Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call highlights strong financial health (record free cash flow, solid full-year revenue growth, high adjusted EBITDA and cash balance), robust engagement and rapid AI adoption across physicians and health systems, and meaningful early commercial traction for AI products. Offsetting these positives are near-term margin pressure from rising AI compute and investments, slower revenue guidance (~4% FY27 growth at midpoint), delayed AI monetization due to regulatory reviews, and softer bookings/visibility driven by policy and macro uncertainty. Management frames the year as an "AI investment year"—accepting short-term margin impact to capture a larger long-term TAM.Positive Updates
Record Free Cash Flow
Q4 free cash flow of $107 million (first-ever 9-digit FCF quarter) and full-year free cash flow of $317 million, up 19% year-over-year; free cash flow was 49% of revenue for fiscal 2026.
Negative Updates
Quarterly Margin Compression from AI Compute
Q4 non-GAAP gross margin fell to 89% from 91% a year ago, and adjusted EBITDA margin declined to 45% from 50% in the prior year quarter, driven primarily by rising AI compute costs and steep ramp in AI usage.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Free Cash Flow
Q4 free cash flow of $107 million (first-ever 9-digit FCF quarter) and full-year free cash flow of $317 million, up 19% year-over-year; free cash flow was 49% of revenue for fiscal 2026.
Read all positive updates
Company Guidance
Doximity guided Q1 FY2027 revenue of $151–$152M (≈4% growth at the midpoint) with adjusted EBITDA of $68.5–$69.5M (≈46% adjusted EBITDA margin), and full‑year FY2027 revenue of $664–$676M (≈4% growth at the midpoint) with adjusted EBITDA of $323–$335M (≈49% adjusted EBITDA margin), while noting they expect stock‑based comp to rise to the low‑20s% of revenue in FY2027 (then trend down in 2028), that ~65% of subscription‑based revenue guidance is already booked, and that AI will be minimally revenue‑contributory this year even as higher R&D, compute and marketing spend (including AI compute) widen near‑term expense and pressure margins—management reiterated a commitment to run adjusted EBITDA margins in the high‑40s or better for FY27; trailing‑12‑month metrics cited on the call included net revenue retention of 109% (114% for the top 20), 125 customers contributing ≥$500K in subscription revenue (up from 118 a year ago) accounting for 83% of total revenue.Doximity Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
90
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 644.86M | 570.40M | 475.42M | 419.05M | 343.55M |
| Gross Profit | 574.54M | 514.52M | 424.75M | 365.56M | 303.76M |
| EBITDA | 214.92M | 240.76M | 182.08M | 135.39M | 118.58M |
| Net Income | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M |
Balance Sheet | |||||
| Total Assets | 1.12B | 1.26B | 1.08B | 1.14B | 991.36M |
| Cash, Cash Equivalents and Short-Term Investments | 748.60M | 915.66M | 762.90M | 841.00M | 798.11M |
| Total Debt | 10.19M | 12.40M | 14.55M | 15.64M | 1.09M |
| Total Liabilities | 172.85M | 181.68M | 177.98M | 170.77M | 112.76M |
| Stockholders Equity | 950.84M | 1.08B | 901.40M | 966.12M | 878.59M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 266.74M | 178.29M | 173.42M | 120.88M |
| Operating Cash Flow | 326.46M | 273.26M | 184.10M | 179.60M | 126.58M |
| Investing Cash Flow | 147.17M | -29.30M | 31.19M | -59.92M | -640.57M |
| Financing Cash Flow | -464.06M | -131.14M | -276.52M | -74.46M | 560.41M |
Doximity Technical Analysis
Neutral
24.71
Price Trends
24.67
Positive
34.30
Negative
49.41
Negative
Market Momentum
-0.65
Negative
54.71
Neutral
87.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Neutral. The current price of 24.71 is above the 20-day moving average (MA) of 23.30, above the 50-day MA of 24.67, and below the 200-day MA of 49.41, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 87.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOCS.
Doximity Risk Analysis
Doximity disclosed 66 risk factors in its most recent earnings report. Doximity reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Doximity Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.50B | 22.23 | 22.89% | ― | 13.05% | -12.34% | |
66 Neutral | $1.96B | 33.30 | 1.64% | ― | 7.86% | -2.92% | |
56 Neutral | $1.15B | -3.82 | -12.37% | ― | -1.50% | 83.75% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $445.43M | -2.40 | -77.89% | ― | -21.26% | -290.08% | |
49 Neutral | $116.14M | -0.23 | -67.07% | ― | -3.89% | 63.03% | |
47 Neutral | $7.89B | -16.06 | -70.24% | ― | 69.82% | 62.77% |
* Healthcare Sector Average
DOCS
Doximity
18.97
-33.59
-63.91%
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EVH
Evolent Health
3.96
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DH
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0.81
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TEM
Tempus AI, Inc. Class A
43.93
-21.56
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.