Doximity Inc. (Doximity (DOCS)) is having a rough Thursday. The company, which runs a social network for doctors, reported a mixed fourth quarter and served up guidance that left investors reaching for the antacids. Shares were down about 24% to $17.66, a new 52-week low.
The headline numbers weren't all bad. Revenue came in at $145.4 million, up 5% year over year and just above the $144.08 million analysts were looking for. But adjusted earnings of 26 cents per share missed the 28-cent estimate, and adjusted EBITDA fell 6% to $65.8 million.
The real trouble is in the outlook. Doximity sees first-quarter 2027 revenue between $151 million and $152 million, below the $153.7 million consensus. For the full fiscal year, it expects $664 million to $676 million, well short of the $697.6 million analysts had penciled in. Adjusted EBITDA guidance for the year—$323 million to $335 million—also came in light.
On the earnings call, management blamed a soft market for digital pharma advertising aimed at healthcare professionals. “With short-term demand in the HCP Digital Pharma ad market soft and visibility still limited,” the company said. “This market environment is the result of policy uncertainty remaining elevated and increased macro risk. Taken together, we expect overall market growth to be modest this year, likely at or below 5%, consistent with broader industry trends.”
It's not all gloom, though. Doximity's core platform is humming. Benchmark workflow engagement hit over 800,000 unique quarterly active prescribers, up roughly 30% year over year—a big acceleration from the high single-digit growth a year ago. Co-founder and CEO Jeff Tangney noted that nearly half of those active prescribers used AI tools in the fourth quarter, and the company saw record-high engagement across the platform as doctors increasingly leaned on its AI assistant.
Wall Street, however, is focused on the near-term pain. At least seven analysts cut price targets or downgraded the stock on Thursday. Baird downgraded Doximity from Outperform to Neutral and slashed its price target from $40 to $18. Needham kept a Buy rating but lowered its target from $55 to $27. Keybanc downgraded from Overweight to Sector Weight, and BTIG went from Buy to Neutral. Morgan Stanley maintained Overweight but cut its target from $49 to $35. Mizuho kept Neutral and lowered from $34 to $26. BMO Capital reiterated Market Perform and cut from $25 to $20. Wells Fargo downgraded from Overweight to Equal-Weight and dropped its target from $32 to $18.
The stock's slide isn't new. Over the past month, Doximity has fallen about 23.4%, while the S&P 500 has risen 8.4%. Year to date, it's down roughly 61%, compared to the index's 8.7% gain. For a company that's still growing its user base and getting doctors hooked on AI, the market is clearly saying the ad slowdown is the story that matters right now.
