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DOCS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Doximity, Inc. (DOCS) stock moving?
Doximity reported fiscal Q2 2027 results on Nov 5: revenue of $174.5M (+4% YoY) and adjusted EPS of $0.36, both slightly ahead of estimates, and it raised FY2027 revenue guidance to $678M-$683M while guiding Q3 revenue in line at $195M-$196M. Offsetting this, adjusted EBITDA fell 12% YoY to $88.9M, margin compressed to 50.9% from 59.8%, GAAP net income dropped to $34.7M from $62.1M, and free cash flow was flat at $91.3M, so growth is slowing and profitability is under pressure from AI investment. Price action reflects this mix: DOCS closed at $34.67 on Nov 4, slipped after the report, and fell to an intraday low of $29.80 on Nov 6 on heavy volume of 4.29M shares before closing at $32.51; it has since held a $32-$33 range and closed at $32.42 on Nov 10, with volume running above late-October levels. Analyst targets range from $32 (Freedom, Hold) and $33 (Evercore, In-Line, cut) to $34 (RBC) and $40-$41 (Canaccord, Needham, Buy), averaging roughly $36, which implies modest upside from the current price. Management points to more than 190 health systems buying its AI suite and growing AI Search bookings as the longer-term driver. Dr. Martens (ticker DOCS on the LSE) items in the feed are unrelated and were excluded.
News behind the analysis
- Freedom Capital Markets Maintains Hold on Doximity, Raises Price Target to $32Freedom Capital Markets kept its Hold rating and raised its price target to $32 after the quarterly report.
- Doximity Expands AI Tools and Reports Growth in AI Search AdvertisingDoximity reports growing health system adoption of its AI clinical tools and rising bookings for its AI Search advertising product.
- Doximity, Inc. Reports Second-Quarter Revenue BeatDoximity reported Q2 revenue of $174.54M, above analyst expectations.
- Canaccord Genuity Maintains Buy on Doximity, Raises Price Target to $40Canaccord Genuity kept its Buy rating and lifted its price target to $40.
- RBC Capital Markets Raises Price Target on DoximityRBC Capital Markets raised its price target on Doximity from $28 to $34 and kept its Outperform rating.
- Evercore ISI Group Maintains In-Line on Doximity, Lowers Price Target to $33Evercore ISI kept its In-Line rating and cut its price target to $33 after the report.
- Needham Reiterates Buy on Doximity, Maintains $41 Price TargetNeedham reiterated its Buy rating and kept its $41 price target.
- Doximity Raises FY2027 Sales Guidance from $671.000M-$681.000M to $678.000M-$683.000M vs $677.558M EstDoximity raised its FY2027 revenue guidance to $678M-$683M, slightly above the $677.6M consensus estimate.
- Doximity Sees Q3 Sales $195.000M-$196.000M vs $195.142M EstDoximity guided fiscal Q3 revenue to $195M-$196M, in line with the $195.1M estimate.
- Doximity Stock Slips on Q2 Earnings: Key DetailsShares moved lower in extended trading after the company reported second-quarter results on Nov 5.
About Doximity, Inc.
Doximity runs the leading online professional network for US medical professionals. More than 85% of US physicians have registered, and it adds tools like secure messaging, telehealth, scheduling and a Clinical AI Suite. Its unusually wide reach among doctors, combined with very high profit margins, is what sets it apart.
How it makes money
Almost all revenue comes from subscriptions. The main source is pharmaceutical companies paying for marketing and messaging that reaches physicians on the platform. Hospitals and health systems also pay for hiring (recruiting) and telehealth or workflow tools. About 125 large customers produce roughly 83% of revenue. Fiscal 2026 (ended March 2026) revenue was about $645 million, up about 13%. Non-GAAP gross margins are around 90%, though rising AI computing costs are trimming them.
What usually moves DOCS
- Pharma marketing budgets and drug launch cycles
- Physician engagement and adoption of its AI tools
- Revenue growth and full-year guidance vs. expectations
- Margin pressure from AI investment and compute costs
- Valuation sentiment toward high-margin software