Doximity falls 5.5% on FY26 revenue guidance cut
Healthcare platform beats Q3 estimates but forecasts FY2026 revenue below Wall Street expectations
Doximity shares fell 5.48% on Wednesday after the digital healthcare platform cut its fiscal year 2026 revenue guidance, even as it posted stronger-than-expected quarterly results. The stock dropped $1.93 to $33.32 on volume of 9.63 million shares, well above its average 2–5 million daily range, according to market data.
The San Francisco-based company now expects FY2026 revenue of $642.5 million to $643.5 million, below the FactSet consensus estimate of $645.3 million, as reported by MarketScreener. The company also issued Q4 revenue guidance of $143–144 million, compared with the analyst consensus of about $151 million.
The guidance overshadowed a solid third-quarter performance. Doximity reported Q3 revenue of $185.1 million, up 10% year-over-year and above the consensus estimate around $181.5 million. Non-GAAP diluted earnings per share reached $0.46, beating estimates of about $0.45, according to company materials and third-party summaries. Adjusted EBITDA rose 9% to $111.4 million.
Despite the beats, investors focused on the softer outlook. MarketWatch reported that the FY outlook cut drove the stock lower in Wednesday trading. Analyst commentary noted concerns about pharma advertising trends and competition in AI-enabled healthcare workflows, although some analysts pointed to Doximity's large physician network and telehealth platform as advantages.
On the margin side, net income for the quarter was $61.6 million, down from $75.2 million in the prior year, as higher operating expenses—including stock-based compensation and marketing—weighed on results.
Doximity announced a new $500 million share repurchase authorization, signaling confidence in cash generation. The company also disclosed that CFO Anna Bryson is taking a temporary medical leave, appointing Siddharth Sitaram as interim principal financial officer and interim principal accounting officer, according to regulatory filings.
In a summary published by BusinessWire, Doximity highlighted the Q3 revenue and EPS beats and provided updated full-year guidance. AP earnings reporting via KVUE also noted the revenue and EPS performance alongside the guidance ranges for Q4 and FY2026.
Analysts continue to monitor Doximity's position as pharmaceutical firms evaluate digital advertising budgets amid regulatory uncertainty. Several research notes cited by Investing.com highlighted a "slightly weaker macro" in recent pharma advertising surveys and cautious 2026 digital budget expectations, alongside questions about the pace of AI adoption in healthcare workflows.
The stock's decline Wednesday erased some of the gains it had logged earlier in the year. Shares remain well below the 52-week high of $85.21, according to market data. Doximity trades at a trailing price-to-earnings ratio of 27.76 and a forward P/E of 20.24, with more than 90% of shares held by institutional investors.