As burnout drives more physicians toward early retirement, many see AI fluency as their best shot at higher earnings
SAN FRANCISCO--(BUSINESS WIRE)--Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced new data indicating that physicians are finding an unexpected source of optimism in AI. Rather than viewing the technology as a threat, nearly a quarter expect it to increase their total compensation within the next year, and two-thirds believe staying current with AI will give them a meaningful earnings edge over peers who don't.
The findings are part of Doximity’s annual Physician Compensation Report, which also shows that the physician shortage continues to weigh heavily on daily practice, with 76% of physicians saying it compromised the quality of care they were able to provide in the past year. That strain is showing up in a growing desire to leave medicine altogether as physicians report being overworked, considering a career change, or eyeing early retirement.
“Physicians go into medicine because they’re passionate about helping people,” said Amit Phull, MD, chief medical officer at Doximity. “Then the job compromises that mission. Admin burden. Extreme hours. A system that doesn’t feel built for them anymore. So it’s no surprise they're looking at AI as leverage, not a threat. Our job at Doximity is simple: give them time back through AI that helps them be more productive and provide better care for their patients.”
Report Highlights
Physicians See AI Fluency as the Next Career Advantage
Rather than fearing displacement, physicians are looking to capitalize: 23% expect AI to increase their total compensation within the next 12 months. 67% believe physicians who stay current with AI tools will have a meaningful earnings advantage over colleagues who don't adopt them in the next 12 months. AI Is the New Professional Currency
At least 39% of physicians surveyed said that AI proficiency is a factor in hiring and promotion decisions for their specialty, including 15% who described it as either a “major” or “moderate” factor. Shortage Still Straining Physicians Fuels Career-Exit Intent
85% of physicians said the physician shortage has already affected their clinical practice. 76% said the shortage and other systemic pressures compromised the quality of care they provided in the past 12 months. In a June 2026 Doximity poll of more than 600 physicians, 82% reported being overworked. Among overworked physicians, 66% are considering a career change, including 46% eyeing early retirement, up from 34%. Broader Compensation Trends
Average physician compensation rose 2% in 2025, down from 3.7% growth the year prior, continuing a trend of moderating pay growth. The gender pay gap held steady at 26% for the second consecutive year, with men earning a nominal $122,276 more than women on average. The pay gap between primary care physicians and specialists widened this year: surgical specialists now earn 90.1% more than primary care physicians, up from 87.3% in 2024. With over 85% of U.S. physicians as members, Doximity brings together one of the nation’s largest physician compensation datasets with workforce surveys, recruiting activity, staffing trends, and insights into AI adoption. The 2026 Physician Compensation Report features new survey findings from June 2026 on how AI is changing physician careers and pay, along with salary data from Doximity’s compensation dataset of more than 23,000 responses collected in 2025.
Read the full 2026 Physician Compensation Report here.
About Doximity
Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company’s network members include more than 85% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay current on medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. With new AI-powered clinical reference and search capabilities, Doximity also helps doctors access trusted, peer-reviewed information and medical literature. Doximity’s mission is to help doctors be more productive so they can provide better care for their patients.
Doximity rozšiřuje AI Search a klinickou AI, přičemž aktivních workflow preskriberů meziročně přibylo o více než 30 %. Vyšší náklady na AI ale tlačí marže dolů.
Key Takeaways Doximity's AI Search is opening a new commercial growth avenue across more than two dozen programs.Clinical AI adoption is rising, with active workflow prescribers up more than 30% year over year.Higher AI compute costs are pressuring margins as pharma advertising budgets remain tight. Doximity (DOCS - Free Report) is entering a pivotal phase as it accelerates investments in artificial intelligence to expand beyond its core physician engagement platform. While robust physician adoption, growing enterprise AI deployments and exceptional cash generation strengthen its long-term outlook, a sluggish pharma advertising market, rising AI investments and commercialization risks could temper near-term financial performance.
Shares of this Zacks Rank #3 (Hold) company have lost 42.8% year to date compared with the industry's 15.5% decline. The S&P 500 Index has risen 11.8% during this period.
Doximity, with a market capitalization of $4.51 billion, is a global specialty medical device company.
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DOCS’ bottom line is estimated to improve 1.7% over the next five years. Its earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 3.13%.
What's Driving DOCS’ Performance?AI Search Is Opening a New Commercial Growth Avenue: Doximity's AI Search business is emerging as a potentially significant incremental revenue stream, with the company already onboarding its first cohort across more than two dozen programs. Management said new AI Search contracts are driving the increase in fiscal 2027 revenue guidance, with most contracted revenues expected to be recognized in the third quarter.
The product is helping Doximity access higher-level decision-makers and innovation budgets at pharmaceutical companies, expanding its commercial relationships beyond traditional digital marketing. Management also noted that AI Search currently generates more than 10 times the revenue per search relative to its cost, indicating attractive unit economics that could improve further as utilization scales.
Rapid Clinical AI Adoption Strengthens Competitive Position: Doximity is gaining meaningful traction in clinical AI, with quarterly active workflow prescribers increasing more than 30% year over year and nearly half of them using AI tools. AI prompt volume rose more than 25% sequentially, while AI Scribe users increased sharply. The company's Ask platform also ranked strongly in the independent NOHARM study, posting a 4.8% clinical error rate compared with 13.6% for Anthropic's best-performing model cited by management. The combination of physician engagement, drug-reference integration and more than 12,000 physician PeerCheck editors could strengthen trust among hospitals and clinicians, providing an important competitive advantage as healthcare AI adoption accelerates.
Expanding Health-System Adoption Creates Opportunity: Doximity's enterprise AI footprint is expanding rapidly, with 165 signed health-system AI clients, including eight top Honor Roll hospitals. Recent wins with major academic institutions demonstrate that Doximity is increasingly becoming part of institutional clinical workflows rather than simply serving as a physician networking platform.
Management believes the market is moving toward greater emphasis on privacy, risk management and clinical accuracy, areas where Doximity believes its physician-reviewed AI architecture provides differentiation. The growing adoption of AI Search, Ask and Scribe also creates opportunities to cross-sell multiple products within the same health system, potentially increasing customer lifetime value and reducing dependence on pharmaceutical advertising over time.
What’s Weighing on DOCS StockAI Investment is Compressing Margins: Doximity's transition toward AI is creating a meaningful near-term profitability trade-off. Adjusted gross margin declined 300 basis points year over year to 88% in the first quarter, primarily because of higher AI compute costs required to support stronger-than-expected clinician usage.
Management expects elevated AI spending to continue throughout fiscal 2027, with adjusted EBITDA guidance implying a 47% margin, below the 48% achieved in the first quarter. Approximately 90% of incremental AI expenses will support the clinical AI suite and be recognized in cost of revenues. Although management expects eventual efficiency improvements, the timing mismatch between investment and monetization could constrain earnings growth in the near term.
Pharmaceutical Advertising Budgets Remain Tight: Despite improving customer engagement, Doximity continues to operate in a relatively cautious pharmaceutical spending environment. Although management characterized the overall buying environment as stabilizing but pressure still remains. Management maintains expectations for mid-single-digit growth in the HCP digital marketing market.
Doximity's full-year revenue guidance of $671-$681 million represents only 5% growth at the midpoint, suggesting that the underlying core business remains relatively subdued. Although AI Search is helping the company access innovation and analytics budgets, traditional pharmaceutical marketing remains sensitive to budget cycles and shorter-term commitments. Consequently, slower recovery in pharma spending could limit growth while the company simultaneously increases AI-related expenses.
Customer Concentration and Contract Structure Create Uncertainty: Doximity's strong relationships with large customers also create concentration risk. The company’s 127 pharma and hospital customers generating more than $500,000 annually accounted for 83% of total revenues, while its top 20 customers achieved 112% net revenue retention. Although these figures demonstrate strong customer economics, reliance on a relatively concentrated group of large accounts makes revenues sensitive to changes in pharmaceutical budgets and individual customer spending decisions.
Management also noted that AI Search initially launched with conservative inventory caps and shorter three- to four-month commitments, highlighting that the new revenue stream is yet to establish long-duration contract visibility. Larger, longer contracts during the upcoming upfront season will be key to improving predictability.
Estimate TrendThe Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $675.7 million, implying growth of 4.8% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $1.33, indicating a decline of 12.5% from the previous year’s recorded level.
In the past 30 days, DOCS’ earnings estimate for fiscal 2027 has declined 7 cents.
Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and West Pharmaceutical (WST - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
CEO Doximity Jeffrey Tangney prodal 8 505 akcií kvůli srážce na daně po uvolnění akcií z vestingu odměn, ne kvůli pohledu na cenu akcie. I po transakci drží přímo 2 531 955 akcií.
Jeffrey Tangney, the chief executive officer of Doximity, Inc. (DOCS -1.13%), reported the disposition of 8,505 shares of Class A Common Stock on August 15, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$211,000Shares sold8,505Post-transaction shares (directly held)2,531,955Post-transaction value$62.79 millionTransaction value based on SEC Form 4 weighted average sale price ($24.80).
Key questionsWhat was the impetus for this transaction?
The disposition was a non-discretionary event executed to satisfy tax withholding requirements upon the vesting of previously granted equity awards and does not reflect a market-based assessment of the stock by the executive.How significant is the CEO's remaining stake in the company?
Tangney continues to hold 2,531,955 shares directly, which represents a 1% ownership interest in the company and underscores significant alignment with long-term shareholders.Did this transaction materially impact the executive's total ownership?
The withholding of 8,505 shares resulted in a marginal 0.3% reduction in direct holdings, leaving the core equity position effectively intact following the underlying vesting event.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$24.80Market Capitalization$4.6 billionRevenue (TTM)$655.6 millionNet Income (TTM)$167.0 millionCompany SnapshotDoximity operates a cloud-hosted digital platform that provides healthcare practitioners with specialized tools for peer connectivity, patient care coordination, remote consultations, medical research access, and professional development.The company generates revenue through subscription-based services and licensing arrangements with pharmaceutical companies and healthcare organizations that utilize the platform to engage with medical professionals.The primary customer base consists of pharmaceutical companies seeking to reach physicians and healthcare organizations seeking to optimize clinical workflows and practitioner engagement across the United States healthcare system.Doximity is a leading digital health platform serving the U.S. healthcare practitioner community with approximately 880 employees and a market capitalization of $4.6 billion. The company has achieved substantial profitability with TTM net income of $167.0 million on revenue of $655.6 million, demonstrating strong unit economics and operational efficiency. Doximity's competitive advantage derives from its comprehensive practitioner network, integrated suite of clinical and professional tools, and established relationships with pharmaceutical and healthcare organization customers.
What this transaction means for investorsTangney co-founded Doximity and has been running it for over 15 years, which makes him the insider whose filings matter the most, but this one tells you close to nothing. The shares went to taxes on vested stock; three other insiders had the same thing happen on the same day, and he still holds more than 2.5 million shares directly.
The business underneath is in a stranger spot than the quarter suggests. Revenue rose 7% to $156.6 million, and management raised the full-year range in the August 6 release, but the September quarter is guided to $170 million to $171 million, roughly 1% growth at the midpoint against last year's 23% comparison. Gross margin slipped to 87.5% from 91.2% as AI compute costs climbed, adjusted EBITDA fell 6%, and net income landed at $24.3 million against $53.3 million a year ago, which is a hard fall for a quarter the company is calling a beat. Tangney told analysts that "this is our AI investment year." The pressure point, meanwhile, is sequencing. Most of the AI search revenue already under contract isn't recognized until the fiscal third quarter, so the spending shows up well before the payoff does. And for now, the stock is under immense pressure, cratering over 60% this past year alone.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy.
CFO společnosti Doximity Matthew Sonefeldt nahlásil neprodejní převod 15 311 akcií kvůli daním z vestingu akciové odměny. Po transakci drží přímo 486 238 akcií.
Matthew Sonefeldt, the chief financial officer of Doximity, Inc. (DOCS -1.13%), reported a non-discretionary disposition of 15,311 shares of Class A Common Stock on August 15, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)15,311Transaction value$380,000Post-transaction shares (directly held)486,238Post-transaction value$12.1 millionTransaction value based on SEC Form 4 weighted average sale price ($24.80).
Key questionsDoes this transaction reflect a shift in the executive's outlook on the firm?
The disposition was a non-discretionary event triggered by tax liabilities linked to equity compensation vesting. Because the shares were withheld by the company to cover these obligations rather than sold in an open-market discretionary trade, the move does not provide a signal regarding the CFO's view on the stock's valuation.What is the scale of the remaining incentive alignment?
Sonefeldt maintains a significant equity interest in the company, holding 486,238 shares directly. This position represents a substantial capital commitment of $12.1 million based on the market close price of $24.80 on August 14.What are the core fundamentals of the business at the time of this filing?
The company operates a digital platform for healthcare practitioners, generating trailing 12-month revenue of $655.6 million and net income of $167.0 million. Its primary client base includes pharmaceutical companies and healthcare organizations that utilize the platform for peer networking and remote consultations.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$24.80Market Capitalization$4.6 billionRevenue (TTM)$655.6 millionNet Income (TTM)$167.0 millionCompany SnapshotDoximity operates a cloud-hosted digital platform that provides healthcare practitioners with specialized tools for peer connectivity, patient care coordination, remote consultations, medical research access, and professional development.The company generates revenue through subscription-based services and licensing arrangements with pharmaceutical companies and healthcare organizations that utilize the platform to engage with medical professionals.The primary customer base consists of pharmaceutical companies seeking to reach physicians and healthcare organizations seeking to optimize clinical workflows and practitioner engagement across the United States healthcare system.Doximity is a leading digital health platform serving the U.S. healthcare practitioner community with approximately 880 employees and a market capitalization of $4.6 billion. The company has achieved substantial profitability with TTM net income of $167.0 million on revenue of $655.6 million, demonstrating strong unit economics and operational efficiency. Doximity's competitive advantage derives from its comprehensive practitioner network, integrated suite of clinical and professional tools, and established relationships with pharmaceutical and healthcare organization customers.
What this transaction means for investorsSonefeldt has been Doximity's CFO for roughly one quarter as of lastweek, which makes this the first tranche of a new hire's equity vesting and the tax bill that comes with it. Three other insiders had the same thing happen the same day, so the filing itself isn't what's worth lingering on.
The more useful thing about Sonefeldt is what he keeps talking about. On the August 6 call he returned again and again to LinkedIn, where he worked before, and to how its ad business only got enormous after buying shifted to auctions over many years. He was careful to say Doximity isn't unveiling that this year. Instead, this year is a lot less tidy for Doximity. Revenue rose 7% to $156.6 million, but the September quarter is guided to $170 million to $171 million, roughly 1% growth at the midpoint. Sonefeldt said on the same call that "the overall pharma spending environment remains tight," which sits awkwardly next to a raised full-year outlook. AI compute costs pulled gross margin to 87.5% from 91.2%, and adjusted EBITDA slipped 6% to $74.8 million while the company spent $91.6 million buying back stock. His own explanation for the weak growth is timing. The fiscal third quarter, when the AI search revenue lands, as the firm noted on the earnings call, is where that gets tested.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy.
Prezident Doximity Steven L. Zatz prodal 4 482 akcií Class A Common Stock za 111 154 USD v rámci rutinního sell-to-cover kvůli daňovým srážkám po vestingu RSU. Po transakci drží 51 864 akcií.
Steven L. Zatz, the president of Doximity, Inc. (DOCS -1.13%), disposed of 4,482 shares of Class A Common Stock on August 15, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$111,154Shares sold (direct)4,482Post-transaction shares (directly held)51,864Post-transaction value$1.29 millionTransaction value based on SEC Form 4 weighted average sale price ($24.80).
Key questionsWhat was the specific mechanism for this share disposal?
The disposition was a non-discretionary sell-to-cover transaction to satisfy tax withholding requirements upon the vesting of restricted stock units, a routine procedure for executive equity compensation.How does this impact the insider's total equity position?
Following the disposal of 4,482 shares, Zatz maintains direct ownership of 51,864 shares of Class A Common Stock.What is the company's current financial profile and valuation?
As of the August 14 market close, Doximity has a market capitalization of $4.6 billion, supported by trailing 12-month revenue of $655.6 million and net income of $167.0 million.What was the market value of the remaining position at the time of the trade?
Based on the August 14 market close of $24.80, the president's remaining 51,864 directly held shares represent a market value of $1.29 million.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$24.80Market Capitalization$4.6 billionRevenue (TTM)$655.6 millionNet Income (TTM)$167.0 millionCompany SnapshotDoximity operates a cloud-hosted digital platform that provides healthcare practitioners with specialized tools for peer connectivity, patient care coordination, remote consultations, access to medical research, and professional development.The company generates revenue through subscription-based services and licensing arrangements with pharmaceutical companies and healthcare organizations that utilize the platform to engage with medical professionals.The primary customer base consists of pharmaceutical companies seeking to reach physicians and healthcare organizations seeking to optimize clinical workflows and practitioner engagement across the United States healthcare system.Doximity is a leading digital health platform serving the U.S. healthcare practitioner community with approximately 880 employees and a market capitalization of $4.6 billion. The company has achieved substantial profitability with TTM net income of $167.0 million on revenue of $655.6 million, demonstrating strong unit economics and operational efficiency. Doximity's competitive advantage derives from its comprehensive practitioner network, integrated suite of clinical and professional tools, and established relationships with pharmaceutical and healthcare organization customers.
What this transaction means for investorsZatz runs the operating side of a company in the middle of rewiring what it sells. He holds 51,864 shares outright, roughly $1.3 million, and the withholding here barely dented it, but his real exposure is the 150,000 options Doximity granted him on July 22 at a $20.49 strike, which don't start vesting until July 2027. They're not noted in this insider filing, but a separate one late last month when the grant happened. That's important because he effectively only gets paid if the stock climbs from there.
The timing is prescient given Doximity's recent results. Revenue grew 7% to $156.6 million in the June quarter and management raised the full-year range, but AI compute costs pulled gross margin down to 87.5% from 91.2%, and adjusted EBITDA fell 6% to $74.8 million. CFO Matt Sonefeldt told analysts on August 6 that "higher-than-expected AI usage creates a good problem for Doximity." Higher-than-expected usage with the contracted AI search revenue not recognized until the third quarter is indeed a good problem, but it'll be important to see whether and how much margins improve once that revenue starts coming in.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity. The Motley Fool has a disclosure policy.
Doximity vyskočila poté, co vedení uvedlo, že AI Search přináší výnosy přesahující 10násobek nákladů na provoz. Tržby v 1. čtvrtletí fiskálního roku 2027 vzrostly o 7 % na 156,6 milionu USD.
Shares of Doximity (DOCS +32.62%) surged on Friday after management highlighted the remarkable returns it was beginning to realize on its artificial intelligence (AI) investments.
Image source: Getty Images.
Q1 results were just part of the story Doximity's revenue rose 7% year over year to $156.6 million in its fiscal 2027 first quarter, which ended on June 30.
Yet its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 6% to $74.8 million. The digital networking, news, and telehealth platform for healthcare professionals is spending aggressively to develop its AI tools.
Those investments are beginning to pay off in a big way, according to CEO Jeff Tangney.
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Leaning into AI In an independent study of 24 clinical AI models, the company's AI assistant, Doximity Ask, was the top-performing U.S.-based model with the lowest clinical error rates and the highest safety ratings. Notably, Doximity Ask had significantly lower error rates than Anthropic's best model, Fable 5.
This superior performance is leading to sharply higher usage of Doximity's AI offerings.
"AI prompt volume was up more than 25% quarter-on-quarter, while our AI Scribe note-taking users grew a whopping 10x this July over prior," Tangney said during a conference call with analysts.
But what really caught investors' attention were Tangney's comments regarding the profit potential of Doximity's AI tools.
In terms of the economics of the usage, it's early days on our AI Search product, but I can tell you we're earning more than 10 times per search in revenue than it costs us to run that today.
10x certainly has a nice ring to it. And Tangney indicated that the returns would likely get even better from there.
Over time, we probably expect the overall AI cost, if anything, go down as models get more efficient.
Tangney's comments painted a picture of a lucrative, AI-driven future for Doximity, and investors bid up its shares as they rushed to grab a piece of it.
"We are leaning in as we see a once-in-a-generation opportunity to build the new AI age of medicine," Tangney said.
Doximity ve 1. čtvrtletí zvýšila tržby na 156,6 milionu USD a zvýšila celoroční výhled na 671 až 681 milionů USD. Akcie po výsledcích v after-hours vyskočily o 72 % na 35,55 USD.
Digital health care company Doximity Inc (NYSE:DOCS) reported first-quarter financial results Thursday after market close.
Here are the key highlights and why the stock is soaring after hours.
Doximity Q1 EarningsDoximity reported first-quarter revenue of $156.6 million, up 7% year-over-year. The revenue total beat the Street consensus estimate of $151.7 million according to data from Benzinga Pro.
The company reported earnings of 29 cents per share, narrowly missing a Street estimate of 30 cents per share.
Adjusted EBITDA was $74.8 million in the quarter, with a margin of 48%.
"We’re proud that our clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while we delivered another quarter of record engagement," Doximity CEO Jeff Tangney said.
The CEO said the company had workflow active prescriber growth of more than 30% year-over-year and AI search query growth of more than 25% quarter-over-quarter.
What’s Next for DoximityThe company is guiding for second-quarter revenue to be in a range of $170 million to $171 million. The Street estimate is $171.95 million according to Benzinga Pro.
For the full fiscal year, the company raised its revenue guidance to a range of $671 million to $681 million. The previous range was $664 million to $676 million. The Street estimate for full-year revenue is currently $670.29 million.
The company expects full-year adjusted EBITDA in a range of $309 million to $329 million.
After a mixed quarter with strong revenue growth and a narrow earnings per share miss, investors are sending shares higher on raised guidance for the full year, which is above analyst estimates.
Doximity Stock Price ActionDoximity stock is up 72% to $35.55 in after-hours trading Thursday versus a 52-week trading range of $17.15 to $76.51.
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Doximity (DOCS - Free Report) reported $156.62 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.3%. EPS of $0.29 for the same period compares to $0.36 a year ago.
The reported revenue represents a surprise of +3.24% over the Zacks Consensus Estimate of $151.7 million. With the consensus EPS estimate being $0.30, the EPS surprise was -3.33%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Doximity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of customers with at least $500,000 of revenue: 127 versus the two-analyst average estimate of 129.Revenues- Other: $10.32 million versus $9.04 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +28.4% change.Revenues- Subscription: $146.3 million compared to the $142.87 million average estimate based on three analysts. The reported number represents a change of +6.1% year over year.View all Key Company Metrics for Doximity here>>>
Shares of Doximity have returned -0.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Doximity rychle rozšiřuje AI: téměř polovina aktivních předepisujících už používá jeho nástroje a Clinical AI Suite má 140 zdravotnických systémů. Firma ale očekává, že investice do AI ve fiskálním roce 2027 stlačí marže z 55 % ve fiskálním roce 2026 na přibližně 49 %.
Key Takeaways DOCS is expanding AI with rising physician use and early AI Search contracts with top-20 pharma companies.Doximity's Clinical AI Suite now serves 140 health systems, supporting retention and cross-selling.DOCS expects AI investment to trim margins as regulatory reviews delay meaningful revenue contribution. Doximity (DOCS - Free Report) is entering a pivotal phase as it accelerates investments in artificial intelligence to expand beyond its core physician engagement platform. While robust physician adoption, growing enterprise AI deployments and exceptional cash generation strengthen its long-term outlook, a sluggish pharma advertising market, rising AI investments and commercialization risks could temper near-term financial performance.
Shares of this Zacks Rank #3 (Hold) company have lost 49.8% so far this year compared with the industry's 5.6% decline and the S&P 500 Index’s 10.9% rise.
Doximity, with a market capitalization of $4.07 billion, is a global specialty medical device company.
DOCS’ bottom line is estimated to improve 3.8% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.99%.
Image Source: Zacks Investment Research
What's Driving DOCS’ Performance?AI Platform Is Rapidly Becoming Doximity's Next Major Growth Engine: Doximity is positioning artificial intelligence as its largest long-term monetization opportunity. Since acquiring Pathway, AI Search and AI Scribe users have tripled, while nearly half of all active prescribers now use the company's AI tools.
Management has already signed its first AI Search contracts with top-20 pharmaceutical companies and believes AI Search alone represents a multibillion-dollar incremental addressable market beyond its existing pharma advertising business. The combination of physician engagement, hospital adoption and early customer interest suggests Doximity is building a differentiated AI ecosystem that could materially expand revenues over the next several years rather than simply enhancing existing products.
Deepening Health System Integration: Doximity's growing integration into hospital workflows is making its platform increasingly indispensable to physicians. Nearly half of all U.S. doctors now work at health systems using Doximity's workflow or scheduling tools, while 140 health systems, including seven of the top 20 U.S. hospitals, have adopted its Clinical AI Suite.
Management emphasized that more than 250,000 prescribers now access AI capabilities through HIPAA-compliant enterprise deployments, creating a significant barrier for competitors. As hospitals increasingly prioritize secure AI environments over public AI tools, Doximity's trusted infrastructure, physician network and enterprise relationships should support higher customer retention and expanding cross-selling opportunities across workflow, telehealth and AI solutions.
Record Physician Engagement: Doximity continues to strengthen the core asset underpinning its business — physician engagement. Workflow usage increased approximately 30% year over year, reaching more than 800,000 quarterly active prescribers, representing one of the strongest engagement accelerations in the company's history. AI usage is growing even faster, with users nearly doubling their monthly query activity since January.
Higher engagement not only strengthens customer loyalty but also increases the value of Doximity's advertising, workflow and AI offerings to pharmaceutical companies and health systems. Management believes sustained engagement growth will eventually translate into stronger revenue expansion, particularly as new AI-powered commercial products become more widely adopted across its physician network.
What’s Weighing on DOCS Stock?Core Pharma Advertising Market Remains Weak: The biggest near-term challenge for Doximity remains the soft healthcare professional (HCP) digital advertising market. Management acknowledged continued policy uncertainty, macroeconomic risks and shorter pharmaceutical budgeting cycles, causing many customers to delay spending commitments and favor shorter-duration contracts.
The company expects the overall HCP digital advertising market to grow only around 5% or less during fiscal 2027, significantly below historical levels. Although Doximity continues to outperform many peers, sluggish industry spending limits visibility and reduces opportunities for traditional advertising growth. Until pharmaceutical companies regain confidence and commit to longer-term marketing budgets, revenue acceleration is likely to remain constrained.
AI Monetization Will Pressure Margins: While AI represents Doximity's largest long-term opportunity, management expects fiscal 2027 to be an investment year rather than a significant earnings contributor. The company plans to substantially increase spending on AI compute, engineering talent, brand marketing, and product development, resulting in adjusted EBITDA margins declining from 55% in fiscal 2026 to approximately 49% in fiscal 2027.
Management also expects minimal AI revenue contribution during the first half because regulatory reviews and customer implementation timelines will delay commercialization. Consequently, the company could face a period of elevated expenses without commensurate revenue growth, increasing execution risk if AI adoption progresses more slowly than anticipated.
Commercial Success Depends on Regulatory and Customer Adoption of AI: Although customer interest in AI Search appears strong, commercialization remains at a very early stage. Management acknowledged that pharmaceutical companies must complete extensive medical, legal and regulatory reviews before campaigns can be deployed, creating longer implementation timelines than traditional advertising products.
Because Doximity launched the commercial offering only recently, management expects most of the financial benefits to materialize in the second half of fiscal 2027. Delays in regulatory approvals, customer onboarding, or campaign execution could defer revenue recognition. Given management's expectation that AI Search will become a major future growth driver, slower-than-expected commercialization would likely weigh on investor expectations.
Estimate TrendThe Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $670.2 million, implying growth of 3.9% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $1.39, indicating a decline of 8.6% from the previous year’s recorded level.
In the past 60 days, DOCS’ earnings estimate for fiscal 2027 has remained stable.
Stocks to ConsiderSome better-ranked stocks from the broader medical space are Alcon (ALC - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alcon reported first-quarter 2026 earnings per share of 85 cents, which beat the Zacks Consensus Estimate by 6.3%. Revenues of $2.69 billion surpassed the Zacks Consensus Estimate by 0.3%.
Alcon has an estimated long-term earnings growth rate of 11.5%. ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 3.66%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
Intuitive Surgical has an estimated long-term earnings growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%.
Doximity Ask v nezávislém studiu Stanfordu a Harvardu překonal OpenEvidence i další přední AI modely v hodnocení bezpečnosti klinické AI. V reálném klinickém vzorku skončil první.
Doximity Ask outranked OpenEvidence, GPT-5.6 Sol, Claude Fable 5, and other frontier models
SAN FRANCISCO--(BUSINESS WIRE)--Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced that Doximity Ask, its HIPAA-compliant clinical AI platform, outperformed leading frontier AI models in the NOHARM (Numerous Options Harm Assessment for Risk in Medicine) benchmark, one of the most comprehensive independent evaluations of clinical AI safety to date.
The study, conducted by ARISE, a clinical AI research team led by physicians from Stanford and Harvard Medical Schools, evaluated how AI models perform when researchers prompted them with simulated patient cases.
Doximity Ask ranked first among all AI systems evaluated on the study's real-world clinical sample, the portion of the benchmark that most closely mirrors how physicians use these tools in practice. Across the broader automated evaluation, purpose-built clinical AI systems outperformed general-purpose frontier models by a wide margin.
Why Doximity Ask Outperformed
Doximity Ask is a HIPAA-compliant AI assistant built specifically for clinical workflows.
Our performance traces directly to our investment in physician authorship at scale. Through our PeerCheck™ program, more than 11,000 cited physician experts have evaluated and improved Doximity Ask outputs.
"We have long believed that the path to trustworthy healthcare AI runs through physicians, not around them," said Dr. Louis-Antoine Mullie, Head of Medical AI at Doximity. "Continuous physician review isn't a differentiator. It's a requirement. This result reinforces the importance of combining advanced AI systems with rigorous clinical oversight and independent safety evaluations like NOHARM."
Doximity's Clinical AI Suite, including Ask, has been reviewed, approved, and deployed across more than 150 health systems, including eight of the nation's top 20 hospitals.
The platform includes end-to-end encryption, role-based access controls, audit logging, and session isolation to help healthcare organizations deploy AI while maintaining enterprise-grade security and privacy standards.
To learn more about Doximity Ask, visit www.doximity.com.
Read more about the study methodology on the Doximity blog.
Notes to Editors:
For the full study, please click here. The chart on the left shows how the top U.S. models performed on F1 score, which balances precision and recall, before the cases and answers were made public. The chart on the right shows automated testing across more than 1,100 scenarios spanning 10 medical specialties. The benchmark was developed by more than 50 researchers with contributions from 29 board-certified physicians. About Doximity
Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 85% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay current on medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. With new AI-powered clinical reference and search capabilities, Doximity also helps doctors access trusted, peer-reviewed information and medical literature. Doximity's mission is to help doctors be more productive so they can provide better care for their patients.
