Doximity (DOCS) AI Stock Analysis

• Market Cap: $5.08B
• Dividend Yield: N/A
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.43
• Revenue Growth: 20.21%
• EPS Growth: 44.14%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.46
• Shares Outstanding: 133,811,550
• 10 Day Avg. Volume: 6,470,254
• 30 Day Avg. Volume: 3,711,841
• 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: 0.98
• Enterprise Value/Revenue: 7.81
• Enterprise Value/Gross Profit: 8.70
• Enterprise Value/Ebitda: 18.29
• 1Y Price Target: $41.19
• Price Target Upside: 49.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $645.34M

• Rating: 71 Outperform
• Price Target: $31.00 ▲(12.73% Upside)

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 margins & operating leverage

Sustained ~90% gross margins and expanding EBIT margin reflect durable pricing power and strong operating leverage in a software-enabled healthcare platform. This margin profile supports persistent profitability, funds reinvestment in products and AI, and provides resilience against moderate revenue fluctuations.

Strong cash generation & liquidity

Operating cash flow consistently outpacing net income and a large cash balance (~$735M) give the company durable financial flexibility. This supports continued product investment, AI infrastructure spending, buybacks, and the capacity to weather industry timing shifts without relying on external financing.

Platform scale & AI adoption

Deep clinician penetration and rapid AI usage create strong network effects and data advantages, reinforcing the platform moat. Large institutional adoption by health systems and broad clinician engagement increase long-term monetization potential across advertising, recruitment, and workflow products.

Negative Factors

Revenue deceleration

A sharp slowdown to low single-digit revenue growth reduces the company's long-term top-line momentum. Slower growth can limit economies of scale expansion, constrain long-term reinvestment capacity, and make future margin improvements harder to sustain absent new product monetization.

Weaker free cash flow momentum

A notable TTM FCF decline weakens the link between earnings and cash available for strategic initiatives. If the FCF trend persists, it could reduce funding for AI commercialization, slow share repurchases, or force tradeoffs between investment and shareholder returns over the medium term.

AI costs before monetization

Substantial AI infrastructure spend that depresses gross margin while AI monetization remains nascent introduces a multi-quarter risk. Continued investment without near-term revenue lift can compress margins and cash generation, challenging the company to prove ROI from AI before it meaningfully contributes to top-line growth.

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 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

High-quality fundamentals: ~90% gross margin, expanding EBIT margin into TTM (~42.8%), strong net margins (~40% TTM), minimal leverage (debt-to-equity ~0.01), and solid cash conversion (operating cash flow > net income). The key drag is slowing growth (TTM revenue ~2.6%) and a TTM free-cash-flow decline (~17.8%).

Income Statement

DOCS shows standout profitability with very high gross margins (~90%) and strong operating leverage, with EBIT margin improving from ~29.9% (FY2023) to ~40.3% (FY2025 annual) and ~42.8% in TTM (Trailing-Twelve-Months). Net margins are also robust (~39% in FY2025 annual and ~40.7% in TTM), indicating strong pricing power and cost discipline. The main weakness is growth deceleration: revenue growth slowed materially from high levels earlier (e.g., ~66% in FY2022) to ~20% in FY2025 annual and ~2.6% in TTM (Trailing-Twelve-Months), which may pressure multiple expansion and future earnings growth.

Balance Sheet

The balance sheet is conservatively positioned with minimal leverage (debt-to-equity ~0.01 in both FY2025 annual and TTM), providing high financial flexibility and low solvency risk. Equity remains substantial (~$0.98B in TTM), supporting resilience. Return on equity is healthy (~20.6% FY2025 annual; ~23.9% TTM), reflecting efficient profitability. A watch item is that equity declined from FY2025 annual (~$1.08B) to TTM (~$0.98B), which could reflect capital return activity or other balance sheet movements (not detailed here).

Cash Flow

Cash generation is strong and high-quality: operating cash flow comfortably exceeds net income (coverage ~1.75x in FY2025 annual and ~2.28x in TTM), and free cash flow tracks net income closely (~0.98x), suggesting earnings are well-supported by cash. Free cash flow has been solid over the multi-year period, but momentum weakened in the latest TTM (Trailing-Twelve-Months) with free cash flow down ~17.8%, a notable contrast versus strong growth in FY2025 annual (~49.6%). This softening, alongside slowing revenue growth, is the key near-term risk factor.

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

Doximity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.50
• 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 27.5 is below the 20-day moving average (MA) of 38.02, below the 50-day MA of 42.68, and below the 200-day MA of 57.00, indicating a bearish trend. The MACD of -3.66 indicates Positive momentum. The RSI at 13.34 is Positive, neither overbought nor oversold. The STOCH value of 18.78 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	71 Outperform	$5.08B	23.09	23.82%	―	20.21%	44.14%
OMCL	54 Neutral	$1.64B	844.91	0.17%	―	10.67%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TEM	51 Neutral	$10.16B	-48.26	-72.61%	―	72.58%	76.81%
DH	49 Neutral	$267.72M	-1.13	-47.69%	―	-5.30%	46.01%
EVH	48 Neutral	$304.67M	―	-13.63%	―	-16.65%	-71.92%
TDOC	47 Neutral	$883.82M	-3.89	-15.42%	―	-2.37%	77.85%

Doximity Corporate Events

Doximity Names Interim CFO and Announces New Buyback

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 long-serving finance executive at the company, had been appointed interim principal financial and accounting officer. The company also reported fiscal third-quarter 2026 results for the period ended December 31, 2025, highlighted by a 10% year-over-year revenue increase to $185.1 million, adjusted EBITDA of $111.4 million with a 60% margin, and strong user engagement across its newsfeed, workflow, and emerging AI products, even as net income and operating cash flow declined versus the prior year. In tandem with its results, Doximity issued updated guidance for its fiscal fourth quarter and full year and unveiled a new stock repurchase authorization of up to $500 million, signaling continued confidence in its balance sheet strength and long-term growth prospects while returning capital to shareholders.

The most recent analyst rating on (DOCS) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Doximity stock, see the DOCS Stock Forecast page.

Doximity Reaches Proposed Settlement in Securities Litigation Case

On December 24, 2025, Doximity, Inc. and certain of its directors and officers reached a proposed settlement agreement to resolve a securities litigation case pending in the U.S. District Court for the Northern District of California. The agreement calls for a $31 million aggregate settlement payment, to be fully funded by insurance, and provides for the dismissal of all claims against the company and the named individuals without any admission of liability, fault, or wrongdoing, subject to stockholder notification, court approval, and other customary conditions, potentially removing a significant legal overhang for the company and its stakeholders.

The most recent analyst rating on (DOCS) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Doximity stock, see the DOCS Stock Forecast page.