Doximity 2026 Q1 Earnings Strong Performance as Net Income Surges 28.9%

Doximity (DOCS) reported fiscal 2026 Q1 earnings on August 8, 2025, showing continued momentum in both revenue and profitability. The company’s results exceeded expectations with a robust 28.9% year-over-year net income increase and a 27.3% rise in EPS. Looking ahead, the company’s updated guidance reflects confidence in its growth trajectory, with full-year revenue projected between $628 million and $636 million.

Revenue
Doximity’s total revenue for fiscal 2026 Q1 surged 15.2% year-over-year to $145.91 million. This growth was primarily driven by its core subscription business, which contributed $137.88 million, reflecting strong demand for its digital tools and AI-powered offerings. Additional revenue of $8.04 million came from other sources, including professional services and licensing, which further diversified the company’s income streams.

Earnings/Net Income
The company’s profitability continued to strengthen, with net income rising 28.9% to $53.32 million compared to $41.38 million in the prior-year quarter. Earnings per share (EPS) also climbed 27.3% to $0.28 from $0.22. This marks five consecutive years of profitability for Doximity during this fiscal quarter, underscoring the company’s ability to maintain and expand its margins despite rising operational and market challenges.

Post-Earnings Price Action Review
The stock’s post-earnings performance revealed mixed signals for investors. A strategy of buying shares after a quarterly revenue drop on the report date and holding for 30 days yielded a -29.08% return over the past three years. This underperformed the benchmark by -24.37%, with a negative CAGR of -28.98% and a Sharpe ratio of -0.34, indicating high volatility and risk. The maximum drawdown of 0.00% also pointed to the limitations of such an approach, highlighting the need for a more nuanced and risk-managed investment strategy.

CEO Commentary
Jeff Tangney, Co-founder and CEO of Doximity, emphasized the company’s strong performance in AI product growth and user engagement. He noted that the AI suite expanded fivefold year-over-year and that over 630,000 prescribers were utilizing workflow tools to enhance efficiency and patient care. This positive sentiment underscored the company’s strategic focus on leveraging AI to deliver value to medical professionals.

Guidance
For fiscal 2026, Doximity provided updated guidance projecting total revenue between $628 million and $636 million, along with adjusted EBITDA expected to range from $341 million to $349 million. For the fiscal second quarter ending September 30, 2025, revenue guidance is set between $157 million and $158 million, with adjusted EBITDA anticipated to range from $87 million to $88 million.

Additional News
Recent news affecting the broader market included developments in the financial sector, such as updates on mergers and acquisitions, and leadership changes within major corporations. Additionally, discussions around potential buybacks and dividends were prominent in earnings-related coverage over the past three weeks. Notable mentions included regulatory shifts in healthcare tech and strategic investments in AI-driven tools for medical professionals.