Doximity Rockets 34% After Crushing Earnings Estimates and Raising Outlook

Doximity (DOCS), a leading provider of software solutions for medical professionals and a prominent stock on the IBD 50 list, saw its shares skyrocket 34% on Friday. The stock surged past a key buy point following a stellar fiscal third-quarter earnings report that far exceeded Wall Street expectations, prompting the company to raise its full-year outlook.

Strong Earnings Performance Fuels Rally

Doximity reported adjusted earnings of $0.45 per share, representing a more than 55% increase year-over-year. The company’s revenue climbed 25% to $168.6 million, significantly surpassing analysts’ expectations of $152.8 million. Additionally, the company exceeded its own sales guidance of $152 million to $153 million.

Investment firm William Blair described the quarter as “pristine,” with analyst Ryan Daniels noting, “It was a stellar quarter for the company across all key operational and financial metrics.”

Stock Breaks Out Past Buy Point

Following the impressive earnings report, Doximity shares broke out of a consolidation pattern, surpassing a key buy point of $61.75. The stock soared to $79.23, marking a 26% gain above its entry price. MarketSurge suggests that savvy investors may consider taking profits when a stock rises 20%-25% beyond its breakout point.

Upgraded Guidance for Fiscal Year

Buoyed by its strong performance, Doximity raised its full-year guidance. The company now expects:

• Adjusted EBITDA of $306.6 million to $307.6 million, well above analyst forecasts of $279.6 million.
• Revenue of $564.6 million to $565.6 million, surpassing estimates of $540 million from FactSet.

Daniels anticipates stable market growth in the 5%-7% range and believes Doximity is well-positioned to outpace this trend. “We believe the company can continue to gain market share and maintain high-single- to low-double-digit revenue growth in fiscal 2026,” he added.

Doximity’s Strong Technical and Fundamental Ratings

Doximity’s outstanding financial performance is reflected in its top-tier ratings:

• IBD Composite Rating: 99 – Ranking among the top 1% of all stocks based on fundamental and technical indicators.
• EPS Rating: 99 – Demonstrating strong profitability and earnings growth.
• Relative Strength Rating: 97 – Indicating strong stock price momentum over the past 12 months.

With its robust financials, positive growth outlook, and strong stock performance, Doximity continues to be a compelling investment for growth-oriented investors.