Doximity (DOCS) Stock Surges 105% Despite Earnings Miss as AI Takes Center Stage

TLDR

• DOCS stock jumped 105% in premarket trading to $42.39 despite missing EPS estimates by 4.2%
• CEO Jeff Tangney credited a “once-in-a-generation opportunity” in clinical AI during the earnings call
• Doximity’s Ask AI model outperformed U.S. rivals including Anthropic’s Fable 5 in a Stanford/Harvard study
• Scribe note-taking users were up 10x in July compared to a year ago
• Revenue beat estimates at $156.6 million, up 7.3% year-on-year; full-year revenue guidance raised to $676 million

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Doximity stock jumped 105% in premarket trading on Friday, hitting $42.39, after the medical networking platform’s earnings call sent investors into a buying frenzy, even though the company missed its earnings target.

Doximity, Inc., DOCS

The quarter itself was a mixed bag. Revenue came in at $156.6 million, up 7.3% year-on-year, beating analyst estimates of $151.3 million by 3.5%. But adjusted EPS of $0.29 missed the $0.30 consensus by 4.2%. Adjusted EBITDA came in at $74.77 million, beating estimates by 7.4%.

DOXIMITY $DOCS Q1’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $156.6M (Est. $152M) 🟢; +7% YoY
🔹 Adj. EPS: $0.29 (Est. $0.30) 🔴; -19% YoY
🔹 Adj. EBITDA: $74.8M; -6% YoY

FY27 Guide:
🔹 Revenue: $671M-$681M (Est. $670M) 🟢
🔹 Adjusted EBITDA: $309M-$329M

Q2 Guide:
🔹 Revenue:…

— Wall St Engine (@wallstengine) August 6, 2026

So why the massive move? One word: AI.

The stock was flat until CEO Jeff Tangney got on the earnings call and started talking about artificial intelligence. “We’re proving you can still post best-in-class software margins while investing heavily in clinical AI,” he said.

Tangney called it a “once-in-a-generation opportunity to build the new AI age of medicine.” That was enough to light a fire under the stock.

AI Metrics Steal the Show

Doximity’s Ask AI model outperformed U.S. rivals, including Anthropic’s Fable 5, in a recent study by researchers from Stanford and Harvard that evaluates medical AI tools.

Usage across Doximity’s AI tools also jumped during the quarter. Scribe note-taking users were up 10 times in July compared to the same period a year ago.

Search AI tool usage also rose over the quarter, pointing to growing engagement with its AI features across the platform.

“We’re the doctors’ digital platform, and AI is just the next chapter in our growth,” Tangney added on the call.

Guidance and Financials

For the next quarter, Doximity guided revenue of $170 million to $171 million, with a midpoint of $170.5 million. That came in close to analyst estimates but slightly below what some on Wall Street had penciled in.

Full-year revenue guidance was lifted to $676 million at the midpoint, up from a prior $670 million.

Full-year EBITDA guidance came in at $319 million at the midpoint, which was below analyst estimates of $329.2 million.

Operating margin for the quarter was 21.5%, down from 37.4% in the same quarter last year. Free cash flow margin was 25.3%, compared to 73.8% the prior quarter.

Billings at quarter end came in at $159.3 million, up 7% year-on-year.

The company’s market cap coming into Friday sat at $3.89 billion. That number looks very different after a 105% premarket move.

Over the last five years, Doximity has posted a 21.9% compounded annual revenue growth rate. The two-year annualized rate sits at 15.2%, a slower pace, and sell-side analysts expect revenue growth of just 3.6% over the next 12 months.

Doximity’s scribe note-taking users were up 10x in July year-on-year, the most recent data point the company provided.