Doximity shares pop 36% on revenue beat, rosy guidance

Doximity shares closed up 36% on Friday, a day after the company reported fiscal third-quarter results that beat Wall Street’s expectations for revenue and guidance.

Doximity is a digital platform for medical professionals that can help them carry out telehealth appointments with patients, find referrals, stay current on medical news and more. The company’s revenue increased 25% to $168.6 million in its third quarter, up from $135.3 million in the same period last year.

For its fiscal fourth quarter, Doximity said it expects to report revenue between $132.5 million and $133.5 million, while analysts were expecting $123.8 million. The company also raised guidance for its full fiscal year and said it expects to report revenue of between $564.6 million and $565.6 million.

Doximity’s adjusted EBITDA was $102.0 million, up 39% year over year.

Analysts at Morgan Stanley raised their price target on the stock to $71 from $53, and said this was driven by a higher EBITDA as well as accelerating growth and strong margin performance. Doximity reported “impressive incremental margins,” the analysts added.

“This was a statement type of quarter, with Doximity exhibiting separation at more than 2X market growth,” the analysts wrote in a Friday note.

Bank of America analysts said Doximity had a “very strong quarter.” They said the company’s growth rate is benefiting from easy comparables, the launch of its client portal, the ramping of new products and its election spend.

The analysts said that while Doximity might have a more moderate revenue growth rate in fiscal 2026, the company appears well-positioned to grow faster than the digital ad market in the long term. They reiterated their neutral rating on the stock, but raised the price target to $75 from $63.

“Doximity is accelerating its share gains versus peers which is due to strong contributions from new products and some tailwinds from its new client portal,” Bank of America analysts said in the Friday note.

Analysts at Leerink Partners upgraded the stock to outperform from market perform and increased the price target to $90 from $60. They said they see the continuation of core growth trends at Doximity.

“In short — we are done fighting the trend, as we see upside to the baseline and a number of green shoots (new products, AI investments, the aforementioned portal) all contributing to ongoing growth,” the analysts wrote.