Doximity (DOCS) Stock Forecast & Price Target

Doximity Inc. reported a 10% year-over-year revenue increase in FY3Q26, reaching $185.1 million, surpassing both the consensus and the guidance provided, indicating robust operational performance. The growth was driven by existing customers, particularly their top 20 clients, with a notable 10% increase in the number of customers spending over $500,000 annually. Additionally, the company demonstrated significant engagement metrics, with unique active users hitting record levels and a substantial uptick in bookings for multi-module, integrated offerings, which witnessed an increase to 45% of total bookings from just 18% the previous year.

Doximity Inc. has experienced a decline in gross margins, dropping to 91.5%, a decrease from both the previous quarter and the same quarter last year, indicating potential profitability challenges. The company's outlook for FYQ4 FY2026 suggests a disappointing growth rate of only 4% year-over-year, attributed to industry-wide policy headwinds affecting pharmaceutical clients' budgeting decisions. Additionally, the net revenue retention (NRR) rate for Doximity's top 20 customers has decreased to 112%, reflecting a downward trend in customer retention and satisfaction compared to previous periods.