New York, Feb 6, 2026, 15:10 EST — Regular session
- Doximity shares tumbled roughly 17% in heavy volume, having earlier plunged over 30% before the market opened.
- After turning in a strong December quarter, the company is targeting revenue of $143 million to $144 million for the March quarter.
- Needham lowered its price target, while Doximity, in an SEC filing, disclosed its CFO was taking medical leave.
Doximity Inc shares slid another 17% Friday afternoon, deepening a rout that kicked off ahead of the open. The stock dropped 17.3% to $27.55, having earlier hit a session low of $20.50. 1
Doximity shares slid after the company projected a noticeably weaker fiscal fourth quarter, even as it delivered another profitable period and greenlit a new share buyback. Guidance for March-quarter revenue came in at $143 million to $144 million, well below the $185.1 million posted in the fiscal third quarter that ended Dec. 31, 2025. The board also cleared a $500 million stock repurchase plan, open-ended with no set expiration. 2
Why it matters now: the company’s projected revenue suggests a sharp quarter-over-quarter slide, dragging profit guidance lower as well. Doximity’s adjusted EBITDA is pegged between $63.5 million and $64.5 million—a cash-focused measure that excludes interest, taxes, and certain non-cash expenses. That puts the margin somewhere in the mid-40% range, a notable comedown from roughly 60% seen last December. 2
New AI products didn’t do much to move the needle in the short term—less than some investors were looking for. Chief Executive Jeff Tangney told analysts on the call that there’s no AI revenue boost baked into the company’s outlook, since those tools aren’t commercially available outside hospitals yet. 3
Doximity posted net income of $61.6 million, down from $75.2 million last year, despite a 10% revenue bump. CEO Tangney highlighted “strong profits and record engagement,” citing upwards of 1 million quarterly active prescribers and 720,000 workflow tool users. The company also logged more than 300,000 users engaging with its AI products. 2
Several analysts wasted no time in slashing targets. Needham’s Scott Berg trimmed his price target to $55 from $75, though he maintained his Buy rating. He described the quarter as “mixed” and said the selloff appeared “overdone.” 4
Needham flagged deal timing and heightened customer caution as the biggest short-term headwinds. According to the firm, “Most Favored Nation” clauses—drug pricing and buying agreements that tend to drag out contract negotiations—were inked by 16 out of the top 20 pharma companies near the end of the year. Add in a sluggish kickoff to the 2026 upfront buying period, and that’s what’s weighing on March-quarter expectations. 5
Doximity announced a shift in its finance team due to health reasons. According to a Form 8-K, Chief Financial Officer Anna Bryson is on temporary medical leave. The board tapped Chief Accounting Officer Siddharth Sitaram to step in as interim principal financial officer and interim principal accounting officer, starting Feb. 3. 6
Even so, this could go either direction. Should pharma and health-system budgets ease up before the quarter wraps, guidance might end up on the low side, with the buyback stepping in as a backstop. But if deal slippage drags on and AI infrastructure spending keeps running hot, there’s fresh risk to both revenue and margins.
March 31, 2026, marks the fiscal fourth quarter close—an unavoidable line in the sand. Traders want to see bookings pick up, customer budgets thaw. They’re also looking for a firmer sense of when Doximity’s AI features actually start to move the revenue needle.
