First-quarter revenue topped estimates, management lifted fiscal 2027 guidance and executives said AI Search and Doximity Ask are opening larger opportunities across pharma and health systems.
Doximity Inc. shares surged Friday after the digital healthcare company reported fiscal first-quarter revenue of $156.6 million, up 7% from a year earlier and above the $151.7 million analyst estimate, then raised fiscal 2027 revenue guidance to $671 million to $681 million from $664 million to $676 million. Adjusted EBITDA was $74.8 million, or a 48% margin, while earnings were 29 cents a share, just below consensus, and second-quarter revenue guidance of $170 million to $171 million was slightly below Wall Street forecasts. Management said stronger-than-expected clinician adoption of AI products is expanding Doximity's total addressable market, with CEO Jeff Tangney saying AI Search is helping the company reach senior pharmaceutical executives and Doximity Ask posted a 4.8% clinical error rate in the NOHARM benchmark versus 13.6% for Anthropic's leading model. Doximity said 165 health system clients use its AI offerings and 127 pharmaceutical and hospital customers generate more than $500,000 in annual subscription revenue, while the stock's advance was likely intensified by a short squeeze after roughly 17% of tradable shares had been sold short heading into the results.