Doximity (DOCS) AI Stock Analysis

• Market Cap: $9.04B
• Dividend Yield: N/A
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 38.3
• Beta (1Y): 1.44
• Revenue Growth: 20.21%
• EPS Growth: 44.14%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.45
• Shares Outstanding: 137,373,860
• 10 Day Avg. Volume: 2,942,564
• 30 Day Avg. Volume: 1,776,195
• 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: 1.53
• Enterprise Value/Revenue: 22.24
• Enterprise Value/Gross Profit: 24.65
• Enterprise Value/Ebitda: 49.50
• 1Y Price Target: $68.46
• Price Target Upside: 42.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 1.58
• Revenue Forecast (FY): $644.93M

• Rating: 72 Outperform
• Price Target: $52.00 ▲(8.33% Upside)

Doximity's strong financial performance and positive earnings call are major strengths, reflecting robust growth and operational efficiency. However, bearish technical indicators and a high valuation pose risks, impacting the overall score.

Positive Factors

Revenue Growth

The 23% YoY revenue growth indicates strong demand for Doximity's services and effective market penetration, supporting long-term business expansion.

AI and Workflow Tool Adoption

Significant growth in AI tool adoption enhances Doximity's competitive edge, driving efficiency and innovation in healthcare technology.

Strong Financial Performance

High EBITDA margins reflect operational efficiency and strong profitability, providing a solid financial base for future growth initiatives.

Negative Factors

Budget Uncertainty

Potential policy changes could impact budget allocations, creating financial planning challenges and affecting revenue predictability.

Increased AI Investment Costs

Rising AI investment costs may pressure margins in the short term, though they are expected to stabilize, impacting near-term profitability.

Transition in Upsell Timing

Changes in upsell timing can lead to revenue volatility, complicating financial projections and potentially affecting quarterly performance.

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 performance with high profitability margins, minimal leverage, and excellent cash flow generation. Despite a slowdown in revenue growth, the company's operational efficiency and financial stability provide a solid foundation for future growth.

Income Statement

Doximity demonstrates strong profitability with a high gross profit margin of 90.2% and a net profit margin of 40.7% in the TTM period, indicating efficient cost management and strong pricing power. The revenue growth rate of 5.4% in the TTM period shows moderate growth, which is a slowdown compared to previous years. However, the company maintains robust EBIT and EBITDA margins, reflecting solid operational efficiency.

Balance Sheet

The company exhibits a very low debt-to-equity ratio of 0.01, highlighting minimal leverage and financial risk. The return on equity (ROE) of 23.9% in the TTM period is impressive, indicating effective use of equity capital. The equity ratio is strong, suggesting a stable financial structure with a high proportion of equity financing.

Cash Flow

Doximity's cash flow performance is excellent, with a free cash flow growth rate of 9.4% in the TTM period and a high operating cash flow to net income ratio of 2.28, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, showing efficient conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	621.33M	570.40M	475.42M	419.05M	343.55M	206.90M
Gross Profit	560.46M	514.52M	424.75M	365.56M	303.76M	175.70M
EBITDA	279.14M	240.76M	182.08M	135.39M	118.58M	57.01M
Net Income	253.03M	223.19M	147.58M	112.82M	154.78M	50.21M
Balance Sheet
Total Assets	1.26B	1.26B	1.08B	1.14B	991.36M	251.72M
Cash, Cash Equivalents and Short-Term Investments	878.37M	915.66M	762.90M	841.00M	798.11M	142.53M
Total Debt	11.27M	12.40M	14.55M	15.64M	1.09M	1.25M
Total Liabilities	161.58M	181.68M	177.98M	170.77M	112.76M	184.98M
Stockholders Equity	1.10B	1.08B	901.40M	966.12M	878.59M	66.74M
Cash Flow
Free Cash Flow	314.48M	266.74M	178.29M	173.42M	120.88M	78.36M
Operating Cash Flow	319.72M	273.26M	184.10M	179.60M	126.58M	82.97M
Investing Cash Flow	-112.43M	-29.30M	31.19M	-59.92M	-640.57M	-70.42M
Financing Cash Flow	-222.29M	-131.14M	-276.52M	-74.46M	560.41M	5.41M

Doximity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 48 is below the 20-day moving average (MA) of 57.93, below the 50-day MA of 65.77, and below the 200-day MA of 62.41, indicating a bearish trend. The MACD of -5.66 indicates Positive momentum. The RSI at 17.82 is Positive, neither overbought nor oversold. The STOCH value of 7.74 is Positive, 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	72 Outperform	$9.04B	38.29	24.61%	―	20.21%	44.14%
OMCL	69 Neutral	$1.55B	80.98	1.62%	―	10.67%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TEM	49 Neutral	$12.29B	―	-72.61%	―	72.58%	76.81%
TDOC	47 Neutral	$1.25B	―	-15.42%	―	-2.37%	77.85%
EVH	45 Neutral	$395.07M	―	-13.63%	―	-16.65%	-71.92%
DH	42 Neutral	$396.10M	-1.05	-47.69%	―	-5.30%	46.01%

Doximity Corporate Events

Doximity’s Earnings Call: Strong Growth and AI Focus

Doximity’s recent earnings call painted a picture of robust financial health and strategic growth, underscored by impressive revenue figures and a strong embrace of AI technologies. Despite facing some uncertainties regarding future budgets and increased investment costs, the company’s successful integration of Pathway and continued client engagement signal a strong market position.

Doximity Reports Strong Q2 Growth and AI Expansion

Doximity, Inc., a prominent digital platform for U.S. medical professionals, provides tools that enhance productivity and patient care. In its fiscal 2026 second quarter, Doximity reported a 23% increase in total revenues, reaching $168.5 million, alongside a significant rise in operating and free cash flows, both up by 37% year-over-year. The company also noted a substantial growth in AI tool usage, with AI Scribe and DoxGPT users increasing by over 50% from the previous quarter.

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.