Shares of Doximity (DOCS, Financial) fell by 12.64% today, with the current stock price at $51.06. The decrease in share value is largely attributed to the company's guidance of only 10% sales growth for fiscal 2026, which fell short of market expectations, despite the company surpassing analyst predictions for the current fiscal year with 20% revenue growth and 50% free cash flow increase.
Doximity Inc (DOCS, Financial) remains a key player in the healthcare sector, with its digital platform being utilized by 80% of U.S. physicians. The platform offers an array of features, including a curated newsfeed, telehealth services, and AI-powered tools like Doximity GPT. Additionally, Doximity has established relationships with the top 20 pharmaceutical companies and hospital systems, which underscores its market strength.
From a valuation perspective, Doximity's prior price-to-free-cash-flow (P/FCF) ratio of 50 indicated high market expectations. However, the modest 10% sales growth guidance has caused a recalibration of market sentiments. The company's GF Value is currently rated as "Fairly Valued." For more details, you can check the GF Value for DOCS.
Despite the setback in stock movement, Doximity's AI tools have shown immense growth, with sales increasing fivefold over the past year. The company also witnessed a 17% increase in the number of customers spending $500,000 or more annually, and existing customers have increased their spending by 19% in 2025, emphasizing the platform's ability to generate substantial revenue streams through its innovative offerings.
Financially, Doximity demonstrates strong metrics, highlighted by its robust balance sheet and high Piotroski F-Score of 8, indicating a healthy financial position. The company also maintains a comfortable interest coverage, ensuring it can manage its debt obligations effectively. Doximity's expanding operating margin further indicates efficient management and growth potential.
