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Doximity
(NYSE:DOCS)
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Rating:76Outperform
Price Target:
$23.50
▲(15.08% Upside)
Action:Reiterated
Date:08/07/26
DOCS scores well primarily on strong financial quality (high margins, strong cash generation, and very low leverage) and a generally positive earnings call with raised guidance and ongoing buybacks. The score is held back by weak-to-neutral technical momentum (trading below key moving averages) and only moderate valuation support at a ~20x P/E.
Positive Factors
High profitability and scalable margins
Sustained very high gross and operating margins signal a scalable, software-like business model with strong unit economics. These margins provide durable cash generation to fund AI investments, buybacks, and R&D while insulating earnings from normal cyclical revenue swings.
Negative Factors
Decelerating revenue growth
Revenue expansion has slowed versus prior years and management expects only modest Q2 growth, relying on AI search to reaccelerate in Q3. Prolonged deceleration would compress long-term upside and force heavier reliance on margin expansion or buybacks to sustain returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and scalable margins
Sustained very high gross and operating margins signal a scalable, software-like business model with strong unit economics. These margins provide durable cash generation to fund AI investments, buybacks, and R&D while insulating earnings from normal cyclical revenue swings.
Read all positive factors
Doximity Key Performance Indicators (KPIs)
Doximity (DOCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.45B
Dividend YieldN/A
Average Volume (3M)3.11M
Price to Earnings (P/E)29.9
Beta (1Y)1.70
Revenue Growth11.18%
EPS Growth-28.59%
CountryUS
Employees880
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.89
Shares Outstanding127,349,365
10 Day Avg. Volume2,613,670
30 Day Avg. Volume3,107,366
Financial Highlights & Ratios
PEG Ratio-1.89
Price to Book (P/B)4.58
Price to Sales (P/S)6.76
P/FCF Ratio13.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.31Price Target Upside48.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)1.36
Revenue Forecast (FY)$675.98M
Doximity Business Overview & Revenue Model
Company Description
Doximity, Inc. provides a digital platform, hosted in the cloud, specifically designed for healthcare practitioners throughout the United States. This platform delivers a suite of specialized tools, empowering its members to connect with peers, st...
How the Company Makes Money
Doximity primarily generates revenue by selling access to its platform and audience of verified healthcare professionals to customers in healthcare and life sciences. Key revenue streams include: (1) Pharmaceutical and life sciences marketing: pai...
Doximity Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call combined strong financial and operational positives — revenue and adjusted EBITDA beats, raised full‑year guidance, robust cash balance, aggressive share repurchases, independent validation of Doximity Ask, rapid clinician adoption and meaningful enterprise wins — with managed near‑term tradeoffs driven by deliberate AI investment. Short‑term impacts include lower gross margin from compute spend, higher OpEx and a cautious Q2 growth comp, but management positioned these as intentional investments to capture a large long‑term AI opportunity while preserving high margins. Overall the positives (beat, guidance raise, product validation, adoption and balance sheet strength) outweigh the near‑term headwinds tied to investment cadence and timing of AI monetization.Positive Updates
Revenue Reacceleration and Guidance Raise
Q1 revenue of $157M, up 7% year‑over‑year and ~3% above the high end of guidance; full‑year guidance raised to $671M–$681M (midpoint ~5% YoY growth). Q2 revenue expected $170M–$171M (midpoint ~1% YoY) with AI revenue ramp expected in Q3.
Negative Updates
Gross Margin Pressure from AI Compute Spend
Non‑GAAP gross margin declined to 88% in Q1 from 91% a year ago due to increased AI compute spend; management expects gross margins to trend in the mid‑ to high‑80% range for fiscal '27 as ~90% of AI expenses are recognized in cost of revenue.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Reacceleration and Guidance Raise
Q1 revenue of $157M, up 7% year‑over‑year and ~3% above the high end of guidance; full‑year guidance raised to $671M–$681M (midpoint ~5% YoY growth). Q2 revenue expected $170M–$171M (midpoint ~1% YoY) with AI revenue ramp expected in Q3.
Read all positive updates
Company Guidance
Management guided Q2 FY‑2027 revenue of $170–171M (midpoint +1% y/y) and raised full‑year revenue to $671–681M (a $6M increase; midpoint +5% y/y), noting only modest AI search revenue in Q2 with the majority of contracted AI search revenue expected to be recognized in Q3; Q2 adjusted EBITDA was guided to $80.5–81.5M (≈48% margin at midpoint) and full‑year adjusted EBITDA to $309–329M (≈47% margin at midpoint). They expect non‑GAAP gross margins to trend in the mid‑to‑high‑80% range as ~90% of incremental AI expenses are recorded in cost of revenue, assume a non‑GAAP effective tax rate of ~21%, and reiterated sequencing that stronger y/y growth should arrive in Q3 as AI search ramps and prior‑year comps ease; additional context included Q1 cash of $688M, Q1 free cash flow of $40M, 191M diluted shares outstanding (down 10M YoY), Q1 share repurchases of $92M with ~$400M remaining, and SBC guidance in the low‑20% range (Q1 SBC 23% of revenue; ~19% excluding a one‑time grant).Doximity Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 655.57M | 644.86M | 570.40M | 475.42M | 419.05M | 343.55M |
| Gross Profit | 577.34M | 574.54M | 514.52M | 424.75M | 365.56M | 303.76M |
| EBITDA | 243.80M | 264.39M | 240.76M | 182.08M | 143.44M | 119.05M |
| Net Income | 167.05M | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.12B | 1.26B | 1.08B | 1.14B | 991.36M |
| Cash, Cash Equivalents and Short-Term Investments | 687.79M | 748.60M | 915.66M | 762.90M | 841.00M | 798.11M |
| Total Debt | 9.67M | 10.19M | 12.40M | 14.55M | 15.64M | 1.09M |
| Total Liabilities | 167.78M | 172.85M | 181.68M | 177.98M | 170.77M | 112.76M |
| Stockholders Equity | 916.07M | 950.84M | 1.08B | 901.40M | 966.12M | 878.59M |
Cash Flow | ||||||
| Free Cash Flow | 299.29M | 317.50M | 266.74M | 178.29M | 173.42M | 120.88M |
| Operating Cash Flow | 306.34M | 326.46M | 273.26M | 184.10M | 179.60M | 126.58M |
| Investing Cash Flow | 257.48M | 147.17M | -29.30M | 31.19M | -59.92M | -640.57M |
| Financing Cash Flow | -427.48M | -464.06M | -131.14M | -276.52M | -74.46M | 560.41M |
Doximity Technical Analysis
Positive
20.42
Price Trends
21.62
Positive
22.31
Positive
31.56
Negative
Market Momentum
1.15
Negative
64.72
Neutral
29.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Positive. The current price of 20.42 is below the 20-day moving average (MA) of 22.42, below the 50-day MA of 21.62, and below the 200-day MA of 31.56, indicating a neutral trend. The MACD of 1.15 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 29.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOCS.
Doximity Risk Analysis
Doximity disclosed 67 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 1 New Risks
1.
Our development, deployment, and use of artificial intelligence may not achieve the expected benefits and may create operational, reputational, competitive, regulatory, legal, and liability risks. Q1, 2026
Doximity Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.45B | 29.88 | 16.95% | ― | 11.18% | -28.59% | |
70 Outperform | $757.81M | 82.92 | 2.79% | ― | 14.05% | ― | |
70 Outperform | $4.71B | 34.83 | 3.59% | ― | 19.23% | 44.44% | |
56 Neutral | $2.75B | 96.75 | 3.02% | ― | 24.10% | 84.08% | |
55 Neutral | $215.16M | -2.71 | -33.27% | ― | -19.00% | 40.98% | |
52 Neutral | $1.22B | -7.03 | -13.08% | ― | -2.08% | 16.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DOCS
Doximity
26.59
-36.95
-58.15%
TDOC
Teladoc
6.96
-0.34
-4.66%
PHR
Phreesia
12.62
-15.39
-54.94%
AMWL
American Well
12.94
5.67
77.99%
PRVA
Privia Health Group
21.76
1.05
5.07%
WAY
Waystar Holding Corp.
25.08
-10.44
-29.39%
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.