Doximity Reports Strong Q3 2026 Earnings Amid Budget Uncertainties
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy DOCS?
Source: seekingalpha
- Significant Revenue Growth: Doximity reported Q3 revenue of $185.1 million, reflecting a 10% year-over-year increase and exceeding the high end of guidance by 2%, indicating strong performance and stable market demand in the healthcare sector.
- Innovative User Engagement: The company surpassed 3 million registered users, with 720,000 unique active prescribers, demonstrating Doximity's expanding influence among physicians and healthcare professionals, thereby enhancing its competitive position in the market.
- High AI Product Adoption: Over 300,000 unique prescribers utilized Doximity's AI products, with DocsGPT preferred at more than twice the rate of competitors, showcasing the company's leadership in AI and its potential for future growth.
- Cautious Future Outlook: While Q4 2026 revenue is expected to grow by 4%, management remains cautious due to policy uncertainties and increased AI infrastructure investments, emphasizing the strategy to leverage delayed client budget releases to drive future growth.
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Analyst Views on DOCS
Wall Street analysts forecast DOCS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCS is 62.75 USD with a low forecast of 50.00 USD and a high forecast of 82.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
10 Buy
4 Hold
1 Sell
Moderate Buy
Current: 35.250
Low
50.00
Averages
62.75
High
82.00
Current: 35.250
Low
50.00
Averages
62.75
High
82.00
About DOCS
Doximity, Inc. provides a digital platform for the United States medical professionals. It offers marketing, hiring, and workflow solutions to pharmaceutical manufacturers, health systems, medical recruiting firms, and other healthcare companies. Its marketing solutions enable its pharmaceutical and health system customers to get the right content, services, and peer connections to the right medical professionals through a variety of modules. Its hiring solutions provide digital recruiting capabilities to health systems and medical recruiting firms, enabling them to identify, connect with, and hire from its network of both active and passive medical professional candidates, who might otherwise be missed through traditional recruiting channels. Its workflow solutions include its telehealth, on-call scheduling, and AI-powered workflow tools, are designed to help clinicians streamline their clinical workflow, reduce their administrative burden, and connect with patients and colleagues.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Doximity Reports Strong Q3 2026 Earnings Amid Budget Uncertainties
- Significant Revenue Growth: Doximity reported Q3 revenue of $185.1 million, reflecting a 10% year-over-year increase and exceeding the high end of guidance by 2%, indicating strong performance and stable market demand in the healthcare sector.
- Innovative User Engagement: The company surpassed 3 million registered users, with 720,000 unique active prescribers, demonstrating Doximity's expanding influence among physicians and healthcare professionals, thereby enhancing its competitive position in the market.
- High AI Product Adoption: Over 300,000 unique prescribers utilized Doximity's AI products, with DocsGPT preferred at more than twice the rate of competitors, showcasing the company's leadership in AI and its potential for future growth.
- Cautious Future Outlook: While Q4 2026 revenue is expected to grow by 4%, management remains cautious due to policy uncertainties and increased AI infrastructure investments, emphasizing the strategy to leverage delayed client budget releases to drive future growth.
See More
Doximity Reports Q3 Earnings Beat but Lowers Guidance, Stock Drops
- Revenue Beat: Doximity reported Q3 revenue of $185.05 million, surpassing estimates of $182.20 million and reflecting a 10% year-over-year growth, indicating the company's strong position in the online networking service for medical professionals.
- Earnings Performance: The company posted adjusted earnings of 46 cents per share, slightly above the expected 45 cents, showcasing effective cost management and operational efficiency, although overall market sentiment remains cautious.
- Guidance Downgrade: Despite beating Q3 estimates, Doximity expects Q4 revenue to be between $143 million and $144 million, below the market expectation of $150.23 million, raising investor concerns and leading to a significant drop in stock price during after-hours trading.
- Share Repurchase Program: Doximity's board authorized a share repurchase program of up to $500 million, despite having $64.84 million in cash and cash equivalents as of December 31, 2025, aiming to bolster shareholder confidence and stabilize stock prices.
See More
Doximity's Q3 Results Beat Expectations but Shares Drop
- Earnings Beat: Doximity (DOCS) reported a non-GAAP EPS of $0.46 for Q3 FY2026, slightly above last year's $0.45, indicating stable profitability; however, net income fell to approximately $61.6 million from $75.2 million due to a 27% year-over-year increase in marketing expenses, highlighting cost pressures on profits.
- Revenue Guidance Miss: The company projects Q4 revenue between $143 million and $144 million, below the consensus estimate of $150.53 million, indicating uncertainty in future growth and potentially dampening investor confidence.
- Stock Buyback Program: Doximity's board has authorized a $500 million stock buyback program aimed at enhancing EPS through reduced share count, although the current market reaction suggests concerns about the company's growth prospects.
- Cash Flow Status: As of December 31, 2025, Doximity reported cash, cash equivalents, and marketable securities of approximately $735.1 million, a significant drop from $915.7 million on March 31, 2025, indicating challenges in financial management and operational expenditures.
See More
Doximity Reports Strong Q3 Earnings Exceeding Expectations
- Strong Earnings Performance: Doximity's Q3 non-GAAP EPS of $0.46 beats expectations by $0.01, indicating a sustained enhancement in profitability and reflecting robust performance in the healthcare sector.
- Significant Revenue Growth: The company reported Q3 revenue of $185.1 million, a 9.8% year-over-year increase that exceeds market expectations by $3.54 million, demonstrating strong growth in customer base and market demand.
- Adjusted EBITDA Increase: Adjusted EBITDA reached $111.4 million, up 9% from $102.0 million last year, although the EBITDA margin slightly decreased to 60.2%, still showcasing the company's strengths in cost control and operational efficiency.
- Policy Uncertainty Impact: Despite strong performance, Doximity faces policy-driven budget uncertainties that could impact future financial results, necessitating close monitoring of potential effects from related policy changes on the business.
See More
Doximity to Announce Q3 Earnings on February 5th
- Earnings Announcement: Doximity (DOCS) is set to release its Q3 2023 earnings results on February 5th after market close, with consensus EPS estimated at $0.45, flat year-over-year, and revenue expected at $181.56 million, reflecting a 7.7% increase year-over-year.
- Performance Consistency: Over the past two years, Doximity has consistently beaten both EPS and revenue estimates 100% of the time, indicating strong profitability and market confidence, although recent EPS and revenue estimates have seen multiple upward and downward revisions.
- Estimate Revision Trends: In the last three months, EPS estimates have undergone 5 upward revisions and 6 downward revisions, while revenue estimates have seen 8 upward revisions and 7 downward revisions, highlighting market divergence and uncertainty regarding Doximity's future performance.
- Market Concerns: Despite Doximity's strong financial performance, policy-driven budget uncertainties may impact its future growth, prompting investors to closely monitor the upcoming earnings report and its potential implications for the market.
See More
10 Small-Cap Stocks Set to Surge in 2026
- Small-Cap Stocks Performance: Small-cap stocks have started 2026 with strong momentum, indicating a positive trend in the market.
- Market Potential: Many of these companies are positioned to outperform the market, suggesting that the rally could continue.
See More
Doximity Reports Strong Q3 2026 Earnings Amid Budget Uncertainties
- Significant Revenue Growth: Doximity reported Q3 revenue of $185.1 million, reflecting a 10% year-over-year increase and exceeding the high end of guidance by 2%, indicating strong performance and stable market demand in the healthcare sector.
- Innovative User Engagement: The company surpassed 3 million registered users, with 720,000 unique active prescribers, demonstrating Doximity's expanding influence among physicians and healthcare professionals, thereby enhancing its competitive position in the market.
- High AI Product Adoption: Over 300,000 unique prescribers utilized Doximity's AI products, with DocsGPT preferred at more than twice the rate of competitors, showcasing the company's leadership in AI and its potential for future growth.
- Cautious Future Outlook: While Q4 2026 revenue is expected to grow by 4%, management remains cautious due to policy uncertainties and increased AI infrastructure investments, emphasizing the strategy to leverage delayed client budget releases to drive future growth.
See More
Doximity Reports Q3 Earnings Beat but Lowers Guidance, Stock Drops
- Revenue Beat: Doximity reported Q3 revenue of $185.05 million, surpassing estimates of $182.20 million and reflecting a 10% year-over-year growth, indicating the company's strong position in the online networking service for medical professionals.
- Earnings Performance: The company posted adjusted earnings of 46 cents per share, slightly above the expected 45 cents, showcasing effective cost management and operational efficiency, although overall market sentiment remains cautious.
- Guidance Downgrade: Despite beating Q3 estimates, Doximity expects Q4 revenue to be between $143 million and $144 million, below the market expectation of $150.23 million, raising investor concerns and leading to a significant drop in stock price during after-hours trading.
- Share Repurchase Program: Doximity's board authorized a share repurchase program of up to $500 million, despite having $64.84 million in cash and cash equivalents as of December 31, 2025, aiming to bolster shareholder confidence and stabilize stock prices.
See More
Doximity's Q3 Results Beat Expectations but Shares Drop
- Earnings Beat: Doximity (DOCS) reported a non-GAAP EPS of $0.46 for Q3 FY2026, slightly above last year's $0.45, indicating stable profitability; however, net income fell to approximately $61.6 million from $75.2 million due to a 27% year-over-year increase in marketing expenses, highlighting cost pressures on profits.
- Revenue Guidance Miss: The company projects Q4 revenue between $143 million and $144 million, below the consensus estimate of $150.53 million, indicating uncertainty in future growth and potentially dampening investor confidence.
- Stock Buyback Program: Doximity's board has authorized a $500 million stock buyback program aimed at enhancing EPS through reduced share count, although the current market reaction suggests concerns about the company's growth prospects.
- Cash Flow Status: As of December 31, 2025, Doximity reported cash, cash equivalents, and marketable securities of approximately $735.1 million, a significant drop from $915.7 million on March 31, 2025, indicating challenges in financial management and operational expenditures.
See More
Doximity Reports Strong Q3 Earnings Exceeding Expectations
- Strong Earnings Performance: Doximity's Q3 non-GAAP EPS of $0.46 beats expectations by $0.01, indicating a sustained enhancement in profitability and reflecting robust performance in the healthcare sector.
- Significant Revenue Growth: The company reported Q3 revenue of $185.1 million, a 9.8% year-over-year increase that exceeds market expectations by $3.54 million, demonstrating strong growth in customer base and market demand.
- Adjusted EBITDA Increase: Adjusted EBITDA reached $111.4 million, up 9% from $102.0 million last year, although the EBITDA margin slightly decreased to 60.2%, still showcasing the company's strengths in cost control and operational efficiency.
- Policy Uncertainty Impact: Despite strong performance, Doximity faces policy-driven budget uncertainties that could impact future financial results, necessitating close monitoring of potential effects from related policy changes on the business.
See More
Doximity to Announce Q3 Earnings on February 5th
- Earnings Announcement: Doximity (DOCS) is set to release its Q3 2023 earnings results on February 5th after market close, with consensus EPS estimated at $0.45, flat year-over-year, and revenue expected at $181.56 million, reflecting a 7.7% increase year-over-year.
- Performance Consistency: Over the past two years, Doximity has consistently beaten both EPS and revenue estimates 100% of the time, indicating strong profitability and market confidence, although recent EPS and revenue estimates have seen multiple upward and downward revisions.
- Estimate Revision Trends: In the last three months, EPS estimates have undergone 5 upward revisions and 6 downward revisions, while revenue estimates have seen 8 upward revisions and 7 downward revisions, highlighting market divergence and uncertainty regarding Doximity's future performance.
- Market Concerns: Despite Doximity's strong financial performance, policy-driven budget uncertainties may impact its future growth, prompting investors to closely monitor the upcoming earnings report and its potential implications for the market.
See More
10 Small-Cap Stocks Set to Surge in 2026
- Small-Cap Stocks Performance: Small-cap stocks have started 2026 with strong momentum, indicating a positive trend in the market.
- Market Potential: Many of these companies are positioned to outperform the market, suggesting that the rally could continue.
See More
