Doximity Lifts Fiscal 2027 Revenue Outlook After Growth Cools

The Tip Desk · November 7, 2026 · 2 min read

The medical-professional platform guided fiscal 2027 revenue to $678 million–$683 million after second-quarter sales of $174.5 million rose 4%.

Doximity, Inc. (DOCS), the digital platform for U.S. medical professionals, raised its fiscal 2027 revenue outlook to a range of $678 million to $683 million after year-over-year sales growth cooled to 4% in the quarter ended September 30, 2026.

Revenue was $174.5 million, versus $168.5 million a year earlier. That followed a 7% year-over-year increase in the fiscal first quarter. The company said it delivered another quarter of record engagement while investing in AI and held a 51% adjusted EBITDA margin. More than 190 health systems have purchased its AI suite, and co-founder and CEO Jeff Tangney said Doximity is extending its lead with UpToDate and DoseCheck.

Profitability compressed. Net income was $34.7 million, a 19.9% margin versus 36.8% a year earlier. Non-GAAP net income was $68.3 million, a 39.1% margin versus 53.4%. Diluted earnings were $0.18 a share, versus $0.31; non-GAAP diluted earnings were $0.36 a share, versus $0.45. Adjusted EBITDA was $88.9 million, down 12% year-over-year, with a 50.9% margin versus 59.8%. That followed a 6% year-over-year decline in the prior quarter.

GAAP gross profit was $149.2 million, versus $152.1 million a year earlier, and GAAP gross margin was 85.5% versus 90.3%. Non-GAAP gross margin was 87.8% versus 91.9%. Cost of revenue was $25.3 million. Research and development expense was $42.0 million, sales and marketing $46.9 million, and general and administrative $16.4 million. Total operating expenses were $105.3 million, versus $88.4 million. Income from operations was $43.9 million. Stock-based compensation was $40.6 million.

Cash generation recovered from a sharp first-quarter drop. Operating cash flow was $93.3 million, down 1% year-over-year, and free cash flow was $91.3 million, down less than 1%. Those figures followed 32% and 34% year-over-year declines in the fiscal first quarter. Cash and cash equivalents were $218.6 million at September 30, 2026, with marketable securities of $494.6 million. The company spent $54.2 million on share repurchases in the quarter.

For the fiscal third quarter ending December 31, 2026, Doximity guided revenue of $195 million to $196 million and adjusted EBITDA of $102.5 million to $103.5 million. Fiscal 2027 adjusted EBITDA guidance was narrowed to $317 million to $325 million from $309 million to $329 million.

The company described its network as including more than 85% of U.S. physicians and said it helps doctors access peer-reviewed information through AI-powered clinical reference and search.