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Doximity Shares Plunge After EPS Miss and Weaker Revenue Guide

The forecast points to slower growth tied to weak pharma ad budgets plus higher AI costs.

Overview

  • Doximity reported Wednesday that revenue rose 5% to $145.4 million and beat estimates, but adjusted EPS fell to $0.26 and missed forecasts.
  • The company guided fiscal 2027 revenue to $664–$676 million and Q1 to $151–$152 million, both below Wall Street views, and it projected about a 49% adjusted EBITDA margin due to higher AI compute costs.
  • Executives said short-term demand in the healthcare professional digital pharma ad market is weak, which reduces visibility on near-term growth.
  • Doximity is leaning into clinical AI, reporting 800,000 active prescribers in Q4 with nearly half using its AI tools, and it announced an integration with value-based care firm Aledade.
  • Following Thursday’s selloff in premarket trading, shares fell roughly 20–24% to new lows as Jefferies, Wells Fargo, and KeyBanc cut ratings and targets.