We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will AI Tools Like DocsGPT Drive the Next Leg of Growth for DOCS?
Read MoreHide Full Article
Key Takeaways
Doximity launched AI tools like Doximity GPT, driving 20% revenue growth and stronger user engagement.
While adoption is strong, DOCS is yet to quantify AI revenue impact, signaling early monetization efforts.
DOCS aims to grow at twice the market rate, with AI seen as a long-term catalyst for diversification.
Doximity (DOCS - Free Report) , long known as the “LinkedIn for doctors,” is betting big on artificial intelligence to accelerate growth after a strong fiscal 2025. DOCS has introduced tools like Doximity GPT, an AI assistant aimed at streamlining clinician workflows — from drafting referral letters to navigating documentation. This tool has helped the company with a 20% top-line expansion and a strong competitive position in its high-margin pharma marketing business.The company expects to grow at roughly twice the market rate.
For investors, the key question is whether these AI-powered tools can continue to materially impact revenues or will simply enhance engagement without driving near-term monetization. On the recent earnings call, management emphasized strong adoption of Doximity GPT and workflow tools, but refrained from quantifying the revenue impact. This suggests that the initiative is still in its build-and-scale phase, rather than being an immediate growth lever.
Importantly, DOCS’ monetization engine is still heavily reliant on pharma marketing dollars, which have faced cyclical softness. AI tools may help defend user engagement, deepen clinician stickiness, and eventually open new monetization paths, particularly in premium workflow subscriptions or value-added services for hospitals and payers.
While AI is unlikely to deliver an overnight boost in revenues, it positions Doximity for a more durable and diversified growth trajectory over time. If adoption accelerates and DOCS can layer in monetization without alienating its physician base, investors could see margin expansion with renewed top-line momentum.
For now, AI serves as a long-term catalyst rather than a short-term fix. However, with over 80% of U.S. physicians on the platform, DOCS is well-placed to capitalize if operational execution is carried out well.
Few Competing AI Tools
Several other companies are also building AI tools to remain competitive in this era. Here we discuss a couple of such companies and their development in AI.
Certara (CERT - Free Report) has rolled out Certara.AI, a life-sciences focused generative-AI platform that includes CoAuthor for regulatory document drafting and tools like Signal and CODEX for market and clinical insights. In the first quarter, software revenues rose 18% year over year to $ 46 million, driven largely by strong AI-tool uptake, while services rose 4%. The board also authorized a $100 million share buyback, signaling confidence in continued AI-driven growth.
GE HealthCare (GEHC - Free Report) , since its 2023 spin-off, has invested several billions in R&D and is embedding AI across imaging devices, cloud apps and ultra-portable ultrasound systems. At RSNA 2024, it showcased new AI-enabled diagnostics and CareIntellect — an AI platform aimed at oncology and operational insights — with a roadmap to launch nearly 200 AI/ML-enabled devices in the next three years. First-quarter 2025 revenues grew nearly 4% organically to $4.78 billion.
DOCS’ Price Performance, Valuation and Estimates
Shares of Doximity have gained 6.9% year to date compared with the industry’s growth of 28%.
Image Source: Zacks Investment Research
DOCS’ forward 12-month P/S of 16.9X is higher than the industry’s average of 6X. The figure is also higher than its five-year median of 13.5X. DOCS carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DOCS’ fiscal 2026 earnings per share suggests a 2.8% improvement from fiscal 2025.
Image: Bigstock
Will AI Tools Like DocsGPT Drive the Next Leg of Growth for DOCS?
Key Takeaways
Doximity (DOCS - Free Report) , long known as the “LinkedIn for doctors,” is betting big on artificial intelligence to accelerate growth after a strong fiscal 2025. DOCS has introduced tools like Doximity GPT, an AI assistant aimed at streamlining clinician workflows — from drafting referral letters to navigating documentation. This tool has helped the company with a 20% top-line expansion and a strong competitive position in its high-margin pharma marketing business.The company expects to grow at roughly twice the market rate.
For investors, the key question is whether these AI-powered tools can continue to materially impact revenues or will simply enhance engagement without driving near-term monetization. On the recent earnings call, management emphasized strong adoption of Doximity GPT and workflow tools, but refrained from quantifying the revenue impact. This suggests that the initiative is still in its build-and-scale phase, rather than being an immediate growth lever.
Importantly, DOCS’ monetization engine is still heavily reliant on pharma marketing dollars, which have faced cyclical softness. AI tools may help defend user engagement, deepen clinician stickiness, and eventually open new monetization paths, particularly in premium workflow subscriptions or value-added services for hospitals and payers.
While AI is unlikely to deliver an overnight boost in revenues, it positions Doximity for a more durable and diversified growth trajectory over time. If adoption accelerates and DOCS can layer in monetization without alienating its physician base, investors could see margin expansion with renewed top-line momentum.
For now, AI serves as a long-term catalyst rather than a short-term fix. However, with over 80% of U.S. physicians on the platform, DOCS is well-placed to capitalize if operational execution is carried out well.
Few Competing AI Tools
Several other companies are also building AI tools to remain competitive in this era. Here we discuss a couple of such companies and their development in AI.
Certara (CERT - Free Report) has rolled out Certara.AI, a life-sciences focused generative-AI platform that includes CoAuthor for regulatory document drafting and tools like Signal and CODEX for market and clinical insights. In the first quarter, software revenues rose 18% year over year to $ 46 million, driven largely by strong AI-tool uptake, while services rose 4%. The board also authorized a $100 million share buyback, signaling confidence in continued AI-driven growth.
GE HealthCare (GEHC - Free Report) , since its 2023 spin-off, has invested several billions in R&D and is embedding AI across imaging devices, cloud apps and ultra-portable ultrasound systems. At RSNA 2024, it showcased new AI-enabled diagnostics and CareIntellect — an AI platform aimed at oncology and operational insights — with a roadmap to launch nearly 200 AI/ML-enabled devices in the next three years. First-quarter 2025 revenues grew nearly 4% organically to $4.78 billion.
DOCS’ Price Performance, Valuation and Estimates
Shares of Doximity have gained 6.9% year to date compared with the industry’s growth of 28%.
Image Source: Zacks Investment Research
DOCS’ forward 12-month P/S of 16.9X is higher than the industry’s average of 6X. The figure is also higher than its five-year median of 13.5X. DOCS carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DOCS’ fiscal 2026 earnings per share suggests a 2.8% improvement from fiscal 2025.
Image Source: Zacks Investment Research
Doximity stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.