Doximity Inc (NYSE:DOCS) Tops Q2 FY2026 Estimates; Shares Fall on Guidance

Doximity Inc (NYSE:DOCS) reported financial results for its fiscal second quarter of 2026 that surpassed analyst expectations on both the top and bottom lines. Despite the strong performance, the company's shares moved lower in after-hours trading, suggesting investors may have been anticipating even stronger results or expressing caution about future growth trajectories.

Quarterly Performance Versus Expectations

The digital platform for medical professionals delivered a robust quarter, exceeding the forecasts set by market analysts. The company's performance highlights the continued demand for its services among healthcare providers and institutions.

• Revenue: $168.5 million, compared to analyst estimates of $160.7 million.
• Non-GAAP Earnings Per Share (EPS): $0.45, compared to analyst estimates of $0.39.

This represents a significant beat on both key metrics, with revenue coming in 4.9% above expectations and EPS surpassing estimates by over 16%. Year-over-year, revenue grew by 23%, while net income saw a substantial increase to $62.1 million from $44.2 million in the same quarter last year.

Financial Outlook and Market Reaction

Looking ahead, Doximity provided guidance for the upcoming quarter and updated its full-year forecast. The company's projections for the next quarter are largely in line with what analysts had been expecting, which may have contributed to the muted market reaction despite the current quarter's beat.

• Q3 FY2026 Revenue Guidance: $180 million to $181 million, compared to an analyst consensus of approximately $184.3 million.
• Q3 FY2026 Adjusted EBITDA Guidance: $103 million to $104 million.
• Full-Year FY2026 Revenue Guidance: Updated to a range of $640 million to $646 million.
• Full-Year FY2026 Adjusted EBITDA Guidance: Updated to a range of $351 million to $357 million.

The company's stock declined nearly 6% in after-market trading following the earnings release. This price action indicates that while the quarterly results were strong, investors may have been hoping for a more optimistic revenue outlook for the coming period, or that the stock's recent performance had already priced in a strong beat.

Operational and Financial Highlights

Beyond the headline numbers, Doximity's earnings release highlighted several key areas of strength. The company continues to see robust engagement on its platform and is successfully monetizing its growing suite of tools, particularly those powered by artificial intelligence.

• User Growth: A record 650,000 prescribers used the company's workflow tools in the quarter.
• AI Adoption: Users of Doximity's AI Scribe and DoxGPT tools grew more than 50% from the prior quarter.
• Profitability: The company demonstrated strong profit margins, with a GAAP net income margin of 36.8% and an adjusted EBITDA margin of 59.8%.
• Cash Flow: Operating cash flow increased 37% year-over-year to $93.9 million, and free cash flow reached $91.6 million.

For a more detailed breakdown of future earnings estimates and historical performance, you can review the data available on the Doximity earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in any stock mentioned. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.