NEW YORK, August 10, 2026, 07:09 EDT — NYSE premarket trade; main session to begin at 09:30 EDT.
- Doximity finished Friday at $27.40, rising 32.6% after reaching a high of $40. The stock advanced 31.0% over the week.
- An initial estimate places Friday’s increase in equity value at $1.21 billion, based on Doximity’s share count as of June 30.
- Wells Fargo & Company NYSE:WFC lowered Doximity’s rating to Underweight on Monday, while maintaining its price target at $18.
Doximity gained approximately $1.21 billion in equity value on Friday. The increase came after executives outlined prospects for AI revenue that has yet to appear in published sales results.
The surge far exceeded the impact of the updated guidance. Doximity increased its fiscal 2027 revenue midpoint by $6 million, representing a 0.9% rise.
The midpoint for adjusted EBITDA decreased by $10 million. Based on this measure, Friday’s action represented roughly $202 in additional equity value for each dollar updated in new guidance. This serves as a comparative metric rather than a valuation method.
Friday’s adjustment in pricing
| Measure | Pre-results reference | Post-results reference | Change |
|---|---|---|---|
| Share price | $20.66 | $27.40 | +32.6% |
| Preliminary equity value | $3.72 billion | $4.93 billion | +$1.21 billion |
| Midpoint for fiscal 2027 revenue | $670 million | $676 million | +$6 million |
| Equity value to revenue midpoint ratio | 5.5 times | 7.3 times | +1.7 turns |
Initial equity calculations are based on 179.85 million shares outstanding as of June 30. Pricing refers to Thursday and Friday closing values.
Trading was turbulent. Shares soared as high as $40, marking a 93.6% jump from Thursday’s close, before retreating to end the day 31.5% under their peak. Volume totaled 64.9 million. Despite the volatility, the stock advanced 31.0% over the week.
The quarter delivered mixed results. Revenue exceeded consensus estimates by roughly $4.9 million, but adjusted earnings fell short by a cent. EBITDA and cash flow were softer.
Q1 performance summary
| Metric | Fiscal Q1 2027 | Year earlier | Change | Street estimate |
|---|---|---|---|---|
| Revenue | $156.6 million | $145.9 million | +7% | $151.7 million |
| Adjusted EBITDA | $74.8 million | $79.8 million | −6% | — |
| Non-GAAP diluted EPS | $0.29 | $0.36 | −19% | $0.30 |
| Free cash flow | $39.6 million | $60.1 million | −34% | — |
CEO Jeff Tangney stated that Doximity Ask ranked as the “top-performing U.S.-based model” on the NOHARM benchmark. The number of workflow active prescribers increased by more than 30%. Sequentially, AI Search queries rose by over 25%. SEC
Revenue is still pending. Company executives stated that AI Search did not generate first-quarter revenue. The majority of contracted revenue was anticipated in fiscal Q3.
Expenses led the way. Revenue costs jumped 50%, primarily due to AI hosting, software, and amortisation. Gross margin slipped to 85% from 89%. Research expenditure climbed 44%.
Management increased sales at the cost of reduced short-term profitability. The updated midpoint points to an EBITDA margin of 47.2%, compared with 49.1% previously.
Fiscal 2027 guidance overview
| Measure | May outlook | August outlook | Midpoint change |
|---|---|---|---|
| Revenue | $664 million–$676 million | $671 million–$681 million | +$6 million |
| Adjusted EBITDA | $323 million–$335 million | $309 million–$329 million | −$10 million |
| Implied midpoint EBITDA margin | 49.1% | 47.2% | −1.9 percentage points |
The margins at the midpoint reflect guidance provided by the company.
Wall Street was divided following the surge. On Monday, Wells analyst Stan Berenshteyn downgraded Doximity to Underweight, stating AI monetisation “looks unproven.” Meanwhile, Needham and Piper Sandler Companies NYSE:PIPR disagreed. StockAnalysis
Latest analyst ratings
| Date | Firm | Rating | Target | Action |
|---|---|---|---|---|
| Aug. 10 | Wells Fargo NYSE:WFC | Underweight | $18 | Cut from Equal Weight |
| Aug. 7 | Needham | Buy | $41 | Increased from $27 |
| Aug. 7 | Piper Sandler NYSE:PIPR | Overweight | $47 | Lifted from $42 |
| Aug. 7 | Raymond James Financial, Inc. NYSE:RJF | Outperform | $38 | Boosted from $23 |
| Aug. 7 | BMO Capital Markets, part of Bank of Montreal (TSE:BMO) | Market Perform | $30 | Lifted from $20 |
(see )
Analysts remain largely cautious in their outlook. Out of 21 analysts, nine rate the stock as a Buy, 11 recommend Hold, and one suggests Sell. The consensus target price averages $29.41, with projections spanning from $18 to $47.
Doximity shares were recently quoted at $27.50 ahead of the open, gaining 0.4%. The week’s major data releases start with July CPI on Wednesday. Thursday brings PPI, while retail sales are due Friday, all at 08:30 EDT. An uptick in yields may weigh on the stock’s premium valuation.
Risks: There is a possibility that AI Search could reallocate, rather than grow, current pharmaceutical budgets. Margins and free cash flow are already in decline. The drop from $40 on Friday also reflects a period of heightened volatility. Success in benchmarks does not ensure that users will pay to adopt.
Related articles: NYSE:DOCS
