New York, February 6, 2026, 07:35 EST — Premarket
- Shares dropped 5.4% in premarket trading following a forecast signaling slower growth ahead
- CFO Anna Bryson is on temporary medical leave; an interim head for finance and accounting has been appointed
- Board signs off on fresh $500 million open-ended share buyback program
Doximity shares dropped 5.4% to $33.32 in premarket trading Friday after the company warned of a sluggish start to its March quarter and announced its CFO is on medical leave. The board named Chief Accounting Officer Siddharth Sitaram as interim principal financial and accounting officer, according to a filing.
The company offers marketing, hiring, and workflow tools aimed at pharmaceutical manufacturers, health systems, and medical recruiters. Its guidance thus serves as a barometer for healthcare advertising and clinician software budgets. That’s key since even modest changes in drugmaker spending can impact growth for niche players like Doximity.
Now, investors are zeroing in beyond the slight quarter-end beat, focusing on the trajectory for the months ahead. A slow-growth quarter quickly gets priced in, particularly when management is ramping up spending to develop new products.
Late Thursday, Doximity announced fiscal third-quarter revenue of $185.1 million, marking a 10% increase year-over-year, even as net income slipped to $61.6 million. Adjusted EBITDA, which excludes interest, taxes, and depreciation, came in at $111.4 million. Non-GAAP diluted earnings hit $0.46 per share. The company projects fiscal fourth-quarter revenue between $143 million and $144 million. Additionally, the board greenlit a new $500 million share buyback program with no set expiration.
During the earnings call, executives noted that policy uncertainty pushed some deals—usually signed by Dec. 31—into the March quarter. They highlighted “most favored nation” agreements, which lock in the best-available terms, signed by 16 of the top 20 pharma companies with the White House in late December and early January. This, they said, caused some clients to hold back budgets and delay decisions. Doximity also repurchased $196.8 million of shares in the quarter and closed December with $735 million in cash and marketable securities. CEO Jeff Tangney commented, “We believe physician oversight is essential,” as the company expands its AI tools. Investing.com
Timing is the key question now. Investors will watch closely to see if those delayed bookings translate smoothly into revenue in the March quarter—or if the slowdown drags on into spring.
BTIG analyst David Larsen maintained his “buy” rating on the stock but slashed his price target to $50 from $80, according to GuruFocus. GuruFocus
However, the situation could turn sour. Should drugmakers clamp down further on marketing budgets, or if policy hurdles delay budget sign-offs, Doximity’s forecast of low-single-digit quarterly growth might be too hopeful. At the same time, increased spending on infrastructure could tighten margins.
The finance transition adds another layer of uncertainty. Even if daily operations hold steady, investors usually mark down stocks when a key executive departs and duties get reshuffled.
The upcoming pivotal moment comes with execution in the fiscal fourth quarter ending March 31. Key will be whether Doximity hits its $143 million to $144 million revenue target and the pace at which postponed pharma deals appear in the reported figures.
