Doximity (DOCS) AI Stock Analysis

• Market Cap: $8.60B
• Dividend Yield: N/A
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 36.4
• Beta (1Y): 1.37
• 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: 1,760,050
• 30 Day Avg. Volume: 2,399,180
• 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: 1.61
• Enterprise Value/Revenue: 22.24
• Enterprise Value/Gross Profit: 24.65
• Enterprise Value/Ebitda: 49.50
• 1Y Price Target: $66.83
• Price Target Upside: 46.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $50.00 ▲(9.43% Upside)

The score is driven primarily by strong financial fundamentals (high margins, strong cash conversion, low leverage) and a constructive earnings update with revenue/EBITDA beats and raised outlook. Offsetting these positives, technical signals are notably weak (below major moving averages with negative MACD), and valuation remains demanding at a ~35.6 P/E. The proposed insurance-funded litigation settlement is a modest additional positive.

Positive Factors

Strong Profitability

High profit margins indicate efficient cost management and strong pricing power, supporting long-term financial stability and growth potential.

Cash Generation

Strong cash generation supports reinvestment in growth opportunities and provides a buffer against economic downturns, enhancing financial resilience.

AI and Workflow Tool Adoption

Increased adoption of AI tools suggests growing integration into healthcare workflows, positioning Doximity for sustained growth in digital health solutions.

Negative Factors

Moderating Revenue Growth

Slowing revenue growth may indicate market saturation or increased competition, potentially impacting future earnings and market share.

Budget Uncertainty

Budget uncertainties could affect client spending and contract renewals, posing risks to revenue stability and growth projections.

Increased AI Investment Costs

Rising AI investment costs may pressure margins in the short term, requiring careful cost management to maintain profitability.

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

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: Neutral
• Last Price: 45.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 45.69 is above the 20-day moving average (MA) of 44.34, below the 50-day MA of 50.99, and below the 200-day MA of 58.97, indicating a neutral trend. The MACD of -1.67 indicates Negative momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 52.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOCS.

Doximity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	73 Outperform	$8.60B	36.44	24.61%	―	20.21%	44.14%
OMCL	71 Outperform	$2.11B	110.39	1.62%	―	10.67%	―
TEM	52 Neutral	$11.51B	―	-72.61%	―	72.58%	76.81%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	49 Neutral	$348.47M	-1.51	-47.69%	―	-5.30%	46.01%
EVH	48 Neutral	$440.82M	-2.56	-13.63%	―	-16.65%	-71.92%
TDOC	47 Neutral	$1.29B	-6.25	-15.42%	―	-2.37%	77.85%

Doximity Corporate Events

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.