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Doximity (DOCS) Is Down 9.8% After New AI Spend, Buyback Plan And Guidance Update – Has The Bull Case Changed?

Simply Wall St·02/14/2026 05:28:35
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  • In early February 2026, Doximity reported third‑quarter 2025 results showing sales of US$185.05 million and net income of US$61.56 million, updated full‑year revenue guidance to about US$642.5–643.5 million, and authorized a new US$500 million share repurchase program after completing a prior US$417.04 million buyback.
  • While revenue and nine‑month earnings rose year over year, quarterly profit per share dipped as management cited delayed pharmaceutical budgets and higher AI infrastructure spending, highlighting a tension between near‑term profitability and long‑term product investment.
  • Now we’ll consider how Doximity’s earnings guidance and stepped‑up AI investment could influence its previously outlined investment narrative.

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Doximity Investment Narrative Recap

To own Doximity, you need to believe its physician network and workflow tools can keep attracting healthcare and pharma spend, even as budgets and regulations shift. The latest quarter reinforced that pharma marketing exposure remains the key short term catalyst and also the biggest risk, with delayed budgets and higher AI infrastructure costs already weighing on near term profitability and investor sentiment.

The new US$500 million share repurchase authorization sits alongside increased AI investment and moderated earnings, and comes after Doximity completed a prior US$417.04 million buyback. For investors focused on catalysts, this level of capital return may matter less than how quickly pharma budgets normalize and whether AI tools evolve from engagement drivers into clearer revenue contributors.

Yet even with record clinician engagement, rising reliance on pharma budgets and signs of client spending hesitation are risks investors should be aware of...

Read the full narrative on Doximity (it's free!)

Doximity's narrative projects $805.8 million revenue and $280.5 million earnings by 2028.

Uncover how Doximity's forecasts yield a $63.57 fair value, a 154% upside to its current price.

Exploring Other Perspectives

DOCS 1-Year Stock Price Chart
DOCS 1-Year Stock Price Chart

Some of the lowest ranked analysts were already more cautious, assuming revenue of about US$756 million and earnings near US$266 million by 2028, and the recent pharma budget delays and AI spend could push their concerns on margin pressure and platform fatigue even further, so it is worth comparing how your own expectations differ from both their view and the more optimistic consensus.

Explore 7 other fair value estimates on Doximity - why the stock might be worth just $41.46!

Build Your Own Doximity Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Doximity research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free Doximity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Doximity's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.