Doximity (DOCS)
NYSE:DOCS
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Doximity
(NYSE:DOCS)
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Rating:71Outperform
Price Target:
$26.00
▲(11.59% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by strong financial performance (exceptional margins, strong cash generation, and very low leverage) and a constructive earnings update highlighting profitability and AI traction despite conservative near-term guidance. Offsetting these positives, technical signals are very weak with the stock far below major moving averages and negative MACD, and growth/FCF momentum has slowed.
Positive Factors
High profitability and cash conversion
Sustained ~90% gross margins and mid-40s EBIT margins reflect durable pricing power and scalable SaaS/advertising economics. Operating cash flow consistently exceeds net income, providing reliable cash generation to fund AI investment, buybacks, and strategic initiatives without levering the balance sheet.
Negative Factors
Material revenue growth deceleration
A sharp slowdown to low-single-digit TTM growth signals maturation of core monetization or near-term saturation in addressable spend. Slower top-line momentum constrains future operating leverage expansion and free cash flow growth, increasing reliance on efficiency, product expansion, or new revenue streams like AI monetization.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and cash conversion
Sustained ~90% gross margins and mid-40s EBIT margins reflect durable pricing power and scalable SaaS/advertising economics. Operating cash flow consistently exceeds net income, providing reliable cash generation to fund AI investment, buybacks, and strategic initiatives without levering the balance sheet.
Read all positive factors
Doximity (DOCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.30B
Dividend YieldN/A
Average Volume (3M)2.71M
Price to Earnings (P/E)33.7
Beta (1Y)1.48
Revenue Growth20.21%
EPS Growth44.14%
CountryUS
Employees827
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.46
Shares Outstanding133,811,550
10 Day Avg. Volume2,345,413
30 Day Avg. Volume2,707,447
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)10.01
Price to Sales (P/S)19.01
P/FCF Ratio40.65
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue6.67
Enterprise Value/Gross Profit7.43
Enterprise Value/Ebitda15.61
Forecast
1Y Price Target
$40.50Price Target Upside73.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)1.62
Revenue Forecast (FY)$701.15M
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 primarily generates revenue by selling subscription and advertising-based solutions to enterprise customers in the pharmaceutical/biotech (life sciences) and healthcare provider (hospitals, health systems, and medical groups) markets.
1)...
Doximity Key Performance Indicators (KPIs)
Doximity Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial health: solid Q3 revenue (+10% YoY) and high absolute profitability (Q3 adjusted EBITDA $111.4M, 60% margin), impressive platform scale and rapid AI adoption (300K+ prescribers, 100+ health systems, 10K peer reviewers), and a robust balance sheet with active buybacks. Near-term headwinds center on timing and policy-driven customer budget uncertainty (MFN), increased AI infrastructure costs pressuring gross margin, and the fact that AI monetization is not yet reflected in guidance. Overall, the positive execution, cash generation, and AI traction outweigh the short-term headwinds and investment-related margin pressure.Positive Updates
Revenue Growth and Guidance Beat
Q3 revenue of $185.1M, up 10% year‑over‑year, and ~2% above the high end of guidance, indicating stronger-than-expected top-line performance for the quarter.
Negative Updates
Near-Term Revenue Headwind and Q4 Guidance
Q4 (fiscal) revenue guidance of $143M–$144M (≈4% growth at midpoint) implies a slowdown in the short term; full fiscal year revenue guidance narrowed to $642.5M–$643.5M (≈13% growth at midpoint), with Q4 weakness offsetting Q3 outperformance.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and Guidance Beat
Q3 revenue of $185.1M, up 10% year‑over‑year, and ~2% above the high end of guidance, indicating stronger-than-expected top-line performance for the quarter.
Read all positive updates
Company Guidance
Management guided fiscal Q4 2026 revenue of $143.0–$144.0M (~4% growth at the midpoint) and adjusted EBITDA of $63.5–$64.5M (~45% margin), and for the full fiscal year 2026 now expects revenue of $642.5–$643.5M (~13% growth at the midpoint) and adjusted EBITDA of $355.5–$356.5M (~55% margin), while reiterating an annual operating floor of ≥50% adjusted EBITDA margin; they noted AI infrastructure spend and delayed pharma budget timing as drivers of the conservative Q4 posture and said AI revenue is not included in guidance today. This guidance follows a strong Q3 (revenue $185.1M, +10% YoY and ~2% above the high end of guidance; adjusted EBITDA $111.4M, 60% margin and ~7% above guidance), plus Q3 metrics including non‑GAAP gross margin 91% (vs 93% LY), free cash flow $58.5M, cash & equivalents $735M, $196.8M of share repurchases in Q3 ( $83M remaining; new $500M authorization), net revenue retention 112% TTM (117% for top 20), 126 customers >$500k (up from 115) representing 84% of revenue, ~3M registered members (>85% of US physicians), >300k unique prescribers used AI in Q3, and management’s market assumption of ~5% calendar‑2026 digital healthcare/pharma ad growth with an expected exit to double‑digit growth later in the year.Doximity Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 637.78M | 570.40M | 475.42M | 419.05M | 343.55M | 206.90M |
| Gross Profit | 572.39M | 514.52M | 424.75M | 365.56M | 303.76M | 175.70M |
| EBITDA | 272.44M | 240.76M | 182.08M | 135.39M | 118.58M | 57.01M |
| Net Income | 239.40M | 223.19M | 147.58M | 112.82M | 154.78M | 50.21M |
Balance Sheet | ||||||
| Total Assets | 1.16B | 1.26B | 1.08B | 1.14B | 991.36M | 251.72M |
| Cash, Cash Equivalents and Short-Term Investments | 735.13M | 915.66M | 762.90M | 841.00M | 798.11M | 142.53M |
| Total Debt | 10.69M | 12.40M | 14.55M | 15.64M | 1.09M | 1.25M |
| Total Liabilities | 177.73M | 181.68M | 177.98M | 170.77M | 112.76M | 184.98M |
| Stockholders Equity | 979.30M | 1.08B | 901.40M | 966.12M | 878.59M | 66.74M |
Cash Flow | ||||||
| Free Cash Flow | 311.55M | 266.74M | 178.29M | 173.42M | 120.88M | 78.36M |
| Operating Cash Flow | 315.42M | 273.26M | 184.10M | 179.60M | 126.58M | 82.97M |
| Investing Cash Flow | -15.28M | -29.30M | 31.19M | -59.92M | -640.57M | -70.42M |
| Financing Cash Flow | -400.57M | -131.14M | -276.52M | -74.46M | 560.41M | 5.41M |
Doximity Technical Analysis
Negative
23.30
Price Trends
28.49
Negative
37.83
Negative
51.55
Negative
Market Momentum
-1.24
Negative
30.77
Neutral
30.70
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 23.3 is below the 20-day moving average (MA) of 24.67, below the 50-day MA of 28.49, and below the 200-day MA of 51.55, indicating a bearish trend. The MACD of -1.24 indicates Negative momentum. The RSI at 30.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.30B | 33.71 | 22.89% | ― | 20.21% | 44.14% | |
54 Neutral | $1.52B | 1,014.72 | 0.17% | ― | 10.67% | ― | |
52 Neutral | $972.26M | -6.16 | -14.24% | ― | -2.37% | 77.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $8.08B | -42.00 | -59.95% | ― | 72.58% | 76.81% | |
48 Neutral | $175.66M | -2.20 | -47.69% | ― | -5.30% | 46.01% | |
45 Neutral | $254.54M | -0.85 | -69.22% | ― | -16.65% | -71.92% |
* Healthcare Sector Average
DOCS
Doximity
23.30
-34.65
-59.79%
OMCL
Omnicell
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EVH
Evolent Health
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TDOC
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DH
Definitive Healthcare Corp
1.23
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TEM
Tempus AI, Inc. Class A
45.22
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-9.36%
Doximity Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Doximity Names Interim CFO and Announces New Buyback
Positive
Feb 5, 2026
On February 5, 2026, Doximity announced that Chief Financial Officer and principal accounting officer Anna Bryson had taken a temporary medical leave of absence, effective earlier that week, and that Chief Accounting Officer Siddharth Sitaram, a l...
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.