Shares of Doximity (NYSE: DOCS) plunged about 22% in pre-market trading on Friday after the company issued weaker-than-expected revenue guidance for the first quarter and full fiscal year 2026. The sell-off came even as the digital platform for U.S. medical professionals reported better-than-expected fourth quarter results.
For the fiscal fourth quarter, Doximity posted adjusted earnings per share of $0.38, well above Wall Street estimates of $0.27. Revenue rose 17% year-over-year to $138.3 million, beating the consensus estimate of $134.03 million.
While the company ended fiscal year 2025 on a strong note, its forward-looking guidance disappointed investors.
For the first quarter of fiscal 2026, Doximity expects revenue to fall between $139 million and $140 million, missing the average analyst estimate of $143.4 million.
The company also offered a cautious full-year outlook, projecting fiscal 2026 revenue between $619 million and $631 million, again missing the average analyst estimate of $639.4 million.
In a statement, Jeff Tangney, co-founder and CEO of Doximity, said the company wrapped up fiscal 2025 on a high note, citing record user engagement, solid profits, and 20% revenue growth. He attributed the performance to increased use of the platform’s newsfeed, workflow, and AI tools, which are helping doctors work more efficiently and deliver better patient care.
Doximity reported Q4 operating cash flow of $98.5 million, a 54% increase from the prior year. Free cash flow rose 56% year-over-year to $97.0 million. For the full fiscal year 2025, the company generated revenue of $570.4 million, reflecting 20% year-over-year growth.
The earnings release comes just days after Leerink Partners adjusted its price target on Doximity shares, lowering it from $90.00 to $78.00. However, the firm maintained its “Outperform” rating on the stock.
In April, Truist Securities also lowered its price target on the stock from $65 to $58, while maintaining a “Hold” rating.
As of the latest update, Doximity (NYSE: DOCS) shares are down 21.81%, trading at $45.70.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
