Doximity Stock Surges 36% on Strong Earnings & Revenue Growth

Doximity shares skyrocketed 36% on Friday, following the company’s fiscal third-quarter earnings report that exceeded Wall Street expectations. The digital healthcare platform, which serves medical professionals with telehealth solutions, referrals, and medical news, showed strong revenue growth, increased guidance, and robust profitability.

🚀 Doximity’s Revenue Beats Expectations

Doximity reported a 25% increase in revenue, reaching $168.6 million in Q3, up from $135.3 million in the same period last year. This impressive growth demonstrates the company’s strong position in the healthcare technology market.

For the fiscal fourth quarter, Doximity provided revenue guidance between $132.5 million and $133.5 million, significantly higher than analyst expectations of $123.8 million.

Additionally, Doximity raised its full-year revenue forecast, now expecting between $564.6 million and $565.6 million.

📊 Key Financial Highlights

✔ Revenue Growth: +25% YoY ($168.6M)
✔ Q4 Revenue Projection: $132.5M – $133.5M (vs. $123.8M expected)
✔ Full-Year Revenue Projection: $564.6M – $565.6M
✔ Adjusted EBITDA: $102M (+39% YoY)

📈 Analysts React to Doximity’s Performance

Doximity’s impressive earnings report led several top financial firms to increase their stock price targets:

🔹 Morgan Stanley:

✔ Raised price target from $53 → $71
✔ Cited strong EBITDA growth and market outperformance

🔹 Bank of America:

✔ Increased price target from $63 → $75
✔ Highlighted new product launches and increased election-related ad spending

🔹 Leerink Partners:

✔ Upgraded stock from “Market Perform” to “Outperform”
✔ Raised price target from $60 → $90
✔ Pointed out strong product innovations and AI investments

🌟 Growth Drivers Behind Doximity’s Success

🚀 1. New Client Portal

Doximity’s client portal is helping medical professionals streamline their telehealth services, improving user engagement and retention.

🚀 2. AI Investments

The company is investing in AI-driven automation and predictive analytics, making its platform more effective for healthcare providers.

🚀 3. Election Ad Spend

With upcoming elections, digital ad spending has increased, benefiting Doximity’s advertising revenue.

🔮 What’s Next for Doximity?

Although analysts expect a slight moderation in revenue growth in fiscal 2026, Doximity’s strong fundamentals and innovative product launches position it well for long-term success. With growing demand for digital healthcare solutions, Doximity continues to gain market share over competitors.

📢 Stay updated with the latest stock trends and financial insights!