Beating Estimates Wasn't Enough

Doximity Inc. (DOCS) released third-quarter results for fiscal 2026 after Thursday's closing bell, and investors didn't like what they saw. Actually, that's not quite right—the quarter itself looked fine. It's the outlook that sent shares cratering.

The medical networking platform, which connects doctors and healthcare professionals online, posted revenue of $185.05 million for the quarter, topping Wall Street's $182.20 million estimate. That represented a solid 10% increase year-over-year. Adjusted earnings came in at 46 cents per share, just edging past the 45-cent consensus.

CEO and co-founder Jeff Tangney highlighted the company's expanding user engagement: "Our newsfeed had more than one million quarterly active prescribers, our workflow products had 720,000 (a record QoQ jump), and our nascent AI products had over 300,000. In short, the addition of AI features across our platform has made us more useful than ever."

The Guidance Problem

Here's where things went sideways. Despite the solid quarterly performance, Doximity guided fourth-quarter revenue to just $143 million to $144 million—well below the $150.23 million analysts were expecting. That's a meaningful miss, and the market reacted accordingly.

The company also tightened its full-year fiscal 2026 revenue guidance, narrowing the range from $640 million to $646 million down to $642.5 million to $643.5 million.

On a brighter note, Doximity's board authorized a $500 million share repurchase program, and the company reported $64.84 million in cash and cash equivalents as of December 31, 2025. Management is scheduled to discuss the results further on an earnings call at 5 p.m. ET.

Market Reaction

Doximity shares were trading down 33.22% at $22.25 in after-hours action at the time of reporting—a brutal reminder that in the stock market, it's not just about what you did, but what you say you'll do next.