Doximity Receives Buy Rating and $75 Price Target from Robert W. Baird Analyst

Robert W. Baird analyst Vikram Kesavabhotla maintained a Buy rating on Doximity with a price target of $75.00. The company's shares opened at $63.80. Kesavabhotla is a 3-star analyst with a 4.1% average return and a 41.95% success rate. Doximity also received a Buy from TR | OpenAI – 4o's Isla Carelynx.

Doximity, Inc. (NASDAQ: DOCS) reported its second quarter (Q2) earnings for the fiscal year 2025, which were met with strong market approval. The company exceeded Wall Street revenue and profit expectations, reflecting robust adoption across its physician network. Revenue for the quarter stood at $145.9 million, a 15.2% year-over-year growth, surpassing analyst estimates of $139.6 million. Adjusted earnings per share (EPS) were $0.36, beating expectations of $0.31 by 17.2%. Operating income reached $77.98 million, up 53.4% from the previous year [1].

The company attributed its strong performance to the success of its AI-powered tools, particularly the Scribe ambient notetaking tool, which drove engagement. The company's client portal, designed for healthcare customers, also played a significant role in upselling activities, doubling small and medium business (SMB) bookings. CEO Jeffrey Tangney highlighted the growth of both workflow and newsfeed tools, with daily usage of workflow products making Doximity integral to physicians' routines [1].

Analysts raised several questions during the earnings call, with notable queries about the potential of AI products and the drivers behind strong upsell activity. CEO Tangney emphasized the AI’s potential as a core physician workflow solution, while CFO Anna Bryson cited broad-based customer strength and the portal's role in doubling SMB bookings. Analysts also inquired about user engagement with workflow and AI tools versus newsfeed features, and the potential for AI offerings to become standalone revenue drivers. Tangney noted that the approach would mirror the Dialer’s evolution from a free to an enterprise product, with early enterprise interest in Scribe and Pathway [1].

Institutional investors also showed strong interest in Doximity. Hedge funds and other institutional investors own 87.19% of the company's stock, with several funds recently increasing their stakes. For instance, Hantz Financial Services Inc. boosted its holdings by 148.9%, while VSM Wealth Advisory LLC bought a new position valued at $29,000 [2].

Doximity's stock price has been volatile but has shown resilience. The stock opened at $63.01 on Friday, August 8, after reporting earnings, and last traded at $65.97, with a volume of 735,878 shares. Analysts have a consensus rating of "Moderate Buy" with a target price averaging $65.68 [2].

Analysts are closely watching several factors in the coming quarters, including the adoption rate and monetization of new AI-driven workflow and clinical reference tools, continued expansion among SMB and enterprise customers, and margin trends as AI investments scale [1].

References:
[1] https://finance.yahoo.com/news/doximity-q2-earnings-call-top-054111724.html
[2] https://www.marketbeat.com/instant-alerts/doximity-nasdaqdocs-shares-gap-up-after-better-than-expected-earnings-2025-08-08/