Doximity (DOCS) Stock Forecast & Price Target

Doximity is well positioned because its core network reaches about 80% of all U.S. physicians, supporting durable engagement and a defensible moat while its workflow and AI products deepen stickiness with health systems. Recent results reinforced that strength, with revenue and adjusted EBITDA above expectations, quarterly active workflow prescribers up 34% year over year, 190+ health system AI clients, and eight-figure AI search bookings from 16 of the top 20 pharma companies. Management’s higher FY27 revenue guidance of $678 million to $683 million and adjusted EBITDA guidance of $317 million to $325 million, along with the UpToDate partnership and expanding AI search TAM, suggest near-term investment is building a longer-term reacceleration opportunity.

Doximity is facing a fragile fundamentals backdrop because more than 90% of revenue depends on pharma marketing spend, yet management says the digital pharma advertising market is growing “at or below 5%” and FY27 guidance implies just 5% top-line growth. Its core business is exposed to patent cliffs, Inflation Reduction Act pressure, FDA scrutiny, and MFN agreements, while low switching costs and competition from AI-native apps, Epic Systems, and other workflow tools weaken pricing power and retention. At the same time, non-GAAP gross margin has slipped to roughly 88% from 91% a year ago, stock-based compensation is near 23% of revenue, and an “AI investment year” could keep margins in the mid-to-high-80s longer than investors want.