Doximity shares experienced a significant surge of 36% following the release of its fiscal third-quarter earnings, which outperformed Wall Street’s expectations. The digital platform for medical professionals reported a 25% increase in revenue, reaching $168.6 million, compared to $135.3 million in the same period last year.
For the upcoming fiscal fourth quarter, the company projects revenue between $132.5 million and $133.5 million, surpassing analysts’ expectations of $123.8 million. Doximity also raised its full fiscal year guidance, now expecting revenue to land between $564.6 million and $565.6 million.
The company’s adjusted EBITDA saw a remarkable 39% year-over-year increase, reaching $102 million. Analysts at Morgan Stanley responded by raising their price target on the stock from $53 to $71, citing Doximity’s accelerating growth, strong margin performance, and impressive incremental margins. They described this earnings report as a “statement quarter,” highlighting the company’s ability to achieve growth at more than twice the market rate.
Bank of America analysts also noted the strength of Doximity’s performance, attributing its success to favorable comparisons with previous periods, the launch of its client portal, new product expansions, and election-related spending. While they anticipate a more moderate revenue growth rate in fiscal 2026, they believe the company remains well-positioned for long-term expansion, exceeding the growth of the digital advertising market. They raised their price target from $63 to $75 while maintaining a neutral rating on the stock.
Meanwhile, analysts at Leerink Partners upgraded Doximity’s stock from market perform to outperform, increasing their price target from $60 to $90. They pointed to continued core growth trends, the company’s expanding AI investments, and the impact of new product offerings as key drivers of its strong performance. They acknowledged previous skepticism but noted the ongoing growth indicators were too compelling to ignore.
Doximity’s success in capturing market share is largely attributed to its innovative approach to digital healthcare solutions. With telehealth capabilities, referral networks, and up-to-date medical news integrated into its platform, the company continues to attract professionals seeking efficient healthcare technology solutions. The combination of expanding product offerings and increased client engagement positions Doximity for sustained success in the evolving digital health market.
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