SAN FRANCISCO, May 13, 2026, 15:02 (PDT)
- Doximity shares slumped roughly 19% in after-hours as its outlook for fiscal 2027 revenue landed below what Wall Street was looking for.
- Revenue for the fourth quarter climbed 5% to $145.4 million. Still, adjusted earnings landed at 26 cents a share, falling short of the 28-cent consensus.
- More than 800,000 active prescribers tapped the company’s workflow tools this quarter; close to half of them also relied on its clinical AI, the company said.
Doximity, Inc. shares slid late Wednesday, hit by a softer fiscal 2027 sales outlook that undercut management’s argument: that new artificial intelligence features are pulling in more doctors to the platform.
The selloff is catching attention as investors weigh if Doximity’s physician network is really going to ramp up revenue through AI. The latest forecast signals a tougher twelve months: at the midpoint, Doximity’s fiscal 2027 revenue guidance suggests about 4% growth—a sharp slowdown from the 13% increase in fiscal 2026.
Doximity slid another 19% after hours, changing hands at $18.94, following an 11.6% drop in the regular session to finish at $23.39, according to Investing.com data.
The San Francisco-based company is projecting revenue between $664 million and $676 million for the fiscal year ending March 31, 2027, coming in under analysts’ $697.6 million forecast, Benzinga Pro data show. For the first quarter, it expects revenue in the range of $151 million to $152 million, missing the $153.7 million consensus.
Doximity posted fourth-quarter revenue of $145.4 million, a 5% rise over last year and just ahead of the $144.08 million analysts had been looking for. Adjusted earnings clocked in at 26 cents per share, short of the consensus by two cents. Adjusted EBITDA — which strips out interest, taxes, depreciation, amortization and certain other costs — slipped 6% to $65.8 million.
Net income came in at $19.1 million, down sharply from $62.5 million a year ago. The company’s full-year revenue climbed to $644.9 million. Free cash flow for the year posted a 19% gain, hitting $317.5 million, according to a filing exhibit.
Doximity notched an “engagement record” last quarter, with over 800,000 active prescribers using its workflow tools, CEO Jeff Tangney said. The company reported that close to half of those users tapped its clinical AI features, and prompts per user almost doubled between January and April. SEC
Doximity rolled out news of a tie-up with Aledade, the physician-led company targeting value-based care. That care model ties at least some provider pay to patient outcomes, not just how many appointments a doctor manages. According to Doximity, its Scribe note-taking tool and Ask clinical AI assistant will be embedded in Aledade Assist, the company’s EHR overlay.
Tangney said the Aledade deal aims to let independent doctors “save time and money.” For Aledade, CEO Farzad Mostashari pointed out that the partnership brings more than just new tech—“where it lands,” he said, matters, highlighting Aledade’s primary-care network and its data reach. Business Wire
The company tapped Matt Sonefeldt for chief financial officer and brought on Dr. Steve Zatz as president. CEO Jeff Tangney pointed to their “experience and relationships” as assets for Doximity’s next phase of growth. With these hires, the firm leans into operational heft while aiming to prove clinical AI can drive top-line gains, not just user engagement. SEC
One sticking point: AI could take longer to drive revenue from health systems, life-sciences clients, or advertisers than some expect. Doximity flagged potential pitfalls, saying that macroeconomic uncertainty, its own member retention and engagement, customer appetite, and fierce competition could all push actual performance off track in this fast-evolving space.
Most of the strain seemed tied to individual names. Teladoc ticked higher during the session, GoodRx slipped roughly 3%, and Veeva Systems gave up about 2.3%. Doximity, though, plunged much harder after hours following its guidance cut.
