Doximity Inc. (DOCS:NYSE) reported fiscal 2027 first-quarter revenue of US$156.6 million for the three months ended June 30, up 7% from US$145.9 million in the same period a year earlier.
The company reported net income of US$24.3 million, compared with US$53.3 million a year earlier. Net income margin was 15.5%, compared with 36.5%. Diluted net income per share was US$0.13, compared with US$0.27.
Non-GAAP net income was US$55.0 million, compared with US$71.9 million, with a non-GAAP net income margin of 35.1%, compared with 49.2%. Non-GAAP diluted net income per share was US$0.29, compared with US$0.36.
Adjusted EBITDA totaled US$74.8 million, compared with US$79.8 million, a decrease of 6% year over year. Adjusted EBITDA margin was 47.7%, compared with 54.7%.
Operating cash flow was US$42.0 million, down 32% from US$62.1 million, while free cash flow was US$39.6 million, down 34% from US$60.1 million. Doximity ended the quarter with US$273.6 million in cash and cash equivalents, compared with US$219.2 million as of March 31.
The company also reported US$414.2 million in marketable securities as of June 30. Total assets were US$1.084 billion, while total liabilities were US$167.8 million.
Doximity said engagement included year-over-year workflow active prescriber growth of more than 30% and quarter-over-quarter AI Search query growth of more than 25%. The company's August investor presentation listed more than 800,000 unique active workflow providers for the fiscal quarter ended March 31 and said AI users represented approximately half of workflow quarterly active users. The presentation also reported that Doximity reaches more than 85% of U.S. physicians.
"We're proud that our clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while we delivered another quarter of record engagement," co-founder and CEO Jeff Tangney said in the company news release. "In Q1, we had accelerated revenue growth along with workflow active prescriber growth of more than 30% year-over-year and AI Search query growth of over 25% quarter-over-quarter."
The investor presentation stated that Doximity Ask outperformed OpenEvidence and leading frontier AI models in the NOHARM benchmark, which it described as one of the most comprehensive independent evaluations of clinical AI safety to date.
Doximity's first-quarter revenue metrics included 127 customers with trailing 12-month subscription revenue above US$500,000, an increase of 7% year over year. The company reported a net revenue retention rate of 107% for the total company and 112% among its top 20 customers.
AI Moves Deeper Into Healthcare Workflows as Digital Health Adoption Expands
Fortune Business Insights valued the global agentic AI in healthcare market at US$1.45 billion in 2025 and projects it will grow from US$1.83 billion in 2026 to US$19.71 billion by 2034, a compound annual growth rate of 34.61%. North America accounted for 45.52% of the market in 2025.
The firm describes a shift away from conversational AI toward systems that carry out multi-step tasks — extracting data, generating documentation, and assigning work — rather than simply responding to prompts. Applications identified in the report include clinical documentation and workflow automation, clinical decision support and diagnostics, patient access and operational efficiency, revenue cycle management, and virtual health assistants and monitoring. Natural language processing led the technology segment in 2025, and healthcare providers led among end users.
Estimates for this market vary widely by firm, with other researchers placing the 2025 base between roughly US$0.7 billion and US$1.5 billion and projecting materially different growth rates, so the figures above should be read as one house's methodology rather than a settled measure.
An August announcement for the Global Health Exhibition said digital health investment is increasingly focused on deploying AI across clinical workflows, diagnostics, hospital operations, and patient engagement. The release cited a projection that Saudi Arabia's digital health market will reach US$11.07 billion by 2033 — a Grand View Research estimate; other forecasters have published higher figures for the same market and year.
"Digital transformation is changing how healthcare is delivered," Dr. Fouziyah AlJarallah, CEO of Hayat National Hospital, said in the announcement, pointing to improved patient outcomes and better-connected services.
The announcement framed healthcare systems as moving from AI experimentation toward implementation at scale, highlighting AI-powered diagnostics, connected care, healthcare data management, and clinical decision support. Professor Shafi Ahmed, consultant surgeon at Barts Health NHS Trust and a speaker at the event's Digital Health Forum, has similarly argued that digital health improves access to care and supports clinicians in delivering better patient outcomes.
On August 13, SNS Insider published a forecast for the generative AI in clinical trials market, valuing it at US$245.82 billion in 2025 and projecting US$1,986.53 billion by 2035 at a 23.27% compound annual growth rate from 2026 through 2035. Those absolute figures appear to be misstated at the source: a market of US$245.82 billion would be several times larger than the entire global clinical trials industry, and at least one other forecaster using an effectively identical growth rate sizes the same market at US$2.45 billion in 2025, reaching US$19.86 billion by 2035 — a factor of 100 smaller. The growth rate and segment shares are consistent across both; the units are not.
SNS Insider attributes demand to the rising complexity and cost of clinical research, with pharmaceutical and biotechnology companies evaluating generative AI for protocol design, patient recruitment, documentation, data analysis, and trial monitoring. By its segmentation, cloud-based solutions represented approximately 63.40% of the market in 2025, and patient recruitment and matching approximately 34.80% by application, with North America accounting for roughly 31.29% of global revenue.
Third-Party Expert Analysis: Analysts Set Targets
Several firms issued updates on August 7. Needham analyst Ryan MacDonald reiterated a Buy rating with a US$41 price target. Evercore analyst Elizabeth Anderson set a US$40 price target and maintained an in-line rating. BMO Capital Markets analyst Sean Dodge reiterated a Market Perform rating with a US$30 price target, while Canaccord Genuity analyst Richard Close set a US$36 price target.
Also on August 7, Piper Sandler analyst Jessica Tassan reiterated an Overweight rating and increased the price target to US$47 from US$42. JPMorgan analyst Alexei Gogolev maintained a Neutral rating and raised the price target to US$31 from US$26.
Wells Fargo analyst Stan Berenshteyn downgraded Doximity from Equal Weight to Underweight on August 10 and set a US$18 price target. Weiss Ratings reiterated a Sell (D+) rating on August 12, with no individual analyst or price target listed by MarketBeat.
The most recent entries on MarketBeat were dated August 13. Truist analyst Jailendra Singh maintained a Hold rating and increased the firm's price target to US$24 from US$19.
AI Search, Commercial Reach, and Fiscal 2027 Guidance Set the Next Milestones
For its fiscal second quarter ending September 30, Doximity provided revenue guidance of US$170 million to US$171 million and adjusted EBITDA guidance of US$80.5 million to US$81.5 million.
For the fiscal year ending March 31, 2027, the company updated its guidance to revenue between US$671 million and US$681 million and adjusted EBITDA between US$309 million and US$329 million.
Doximity's Fall 2026 investor presentation identified AI Search as an additional offering alongside its existing pharmaceutical marketing, health system marketing, staffing, and telehealth businesses. The presentation listed a total accessible market of US$18.5 billion across pharmaceutical marketing, health system marketing and staffing, and telehealth, with AI Search adding what the company described as billions of dollars in 2026.
The company's clinical AI suite includes Scribe, Ask, and Dialer. Doximity described the suite as free, HIPAA-compliant, and private to each clinician. The presentation also highlighted Doximity's Pathway AI acquisition, describing the acquired team as half doctors with seven years of AI experience and identifying a medical semantic model designed for maximum accuracy.
Doximity also outlined an AI Search offering that includes Ask AI placement and what the company called "acceleration of ecosystem message." Its core commercial modules include long-form, video, and short-form Newsfeed formats as well as point-of-care and formulary offerings, with customized packages created for customers.
The presentation described a dynamic integrated offering using more than 300 data and insights inputs, including proprietary Doximity, IQVIA, brand and content signals, together with an AI orchestration engine.
Doximity identified marketing solutions as its largest revenue driver. Its subscription pricing model incorporates audience, including specialty, the number of audience members, and the type and number of modules. The presentation reported a 17-to-1 return on investment for health systems based on LexisNexis data and approximately 10-to-1 for pharmaceutical customers using IQVIA methodology.
Streetwise Ownership Overview*
Doximity Inc. (DOCS:NYSE)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 12/11/99 | DOCSF:NYSE | 1 | DOCS:NYSE | 1 |
The presentation also showed Doximity had signed 53% of U.S. pharmaceutical brands with more than US$100 million in sales as of March 31, while 47% were not signed. Among U.S. brands with US$1 million to US$100 million in sales, 11% were signed, and 89% were not signed.
As of June 30, Doximity had 885 employees, with more than 40% in research and development.
Ownership and Share Structure1
91.84% of Doximity is held by institutions, and 2.81% is owned by management and insiders. The rest is retail.
Doximity has a market cap of US$4,739.56 million, 178.25 million outstanding shares, and a 52-week range of US$17.15 to US$76.51.
Important Disclosures:
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
