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Can Doximity's New AI Suite Drive the Growth It Needs?
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Key Takeaways
DOCS' Q1 revenues rose 15% to $145.9M with adjusted EBITDA margin of 55%.
DOCS' Scribe has 10,000 beta testers, with 75% using the AI note-taking tool weekly.
DOCS' $26M Pathway deal adds clinical AI depth, boosting accuracy and physician trust.
Doximity (DOCS - Free Report) entered fiscal 2026 with stronger-than-expected results, reporting first-quarter revenues of $145.9 million (up 15% year over year) and an adjusted EBITDA margin of 55%. But the spotlight of the quarter wasn’t just financial outperformance — it was the company’s bet on artificial intelligence as its “third act.”
The launch of Doximity AI Scribe and the acquisition of Pathway highlight management’s ambition to make AI central to the physician workflow. Scribe, a HIPAA-compliant ambient note-taking tool, has already gained traction with over 10,000 beta testers, with 75% using it weekly.
Physicians have reported that it meaningfully reduces “pajama time,” the after-hours burden of documentation. By offering Scribe for free, Doximity is prioritizing adoption and stickiness, setting the stage for a potential enterprise revenue model similar to its Dialer product.
Meanwhile, the $26 million Pathway acquisition enhances clinical AI capabilities, introducing a proprietary, cross-linked medical corpus that achieved a record 96% score on the U.S. medical licensing exam. Already integrated into Doximity GPT, Pathway strengthens the platform’s ability to deliver accurate, evidence-based answers — a critical differentiator in a market where physician trust is paramount.
Financially, Doximity remains disciplined. Free cash flow rose 52% year over year, net revenue retention stayed strong at 118%, and the company continues to return capital through share repurchases. While management expects 11% revenue growth for fiscal 2026, caution remains around policy-driven uncertainty.
Ultimately, Doximity’s AI suite, comprising Scribe, GPT, and Pathway, positions the company to integrate itself more deeply into the daily workflow of physicians. If adoption scales and enterprise monetization follows, AI could indeed be the catalyst for Doximity’s next phase of growth. The coming quarters will test whether this early momentum can translate into durable, revenue-generating engagement.
A 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 second quarter, Certara’s software revenues rose 22% year over year to $46 million, driven largely by strong AI-tool uptake, while services rose 5%. Certara’s 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 billion dollars in R&D and is embedding AI across imaging devices, cloud apps and ultra-portable ultrasound systems. At RSNA 2024, GE HealthCare showcased new AI-enabled diagnostics and CareIntellect — an AI platform focused on oncology and operational insights — with a roadmap to launch nearly 200 AI/ML-enabled devices over the next three years. GE HealthCare’s second-quarter 2025 revenues grew nearly 2% organically to $5 billion.
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Can Doximity's New AI Suite Drive the Growth It Needs?
Key Takeaways
Doximity (DOCS - Free Report) entered fiscal 2026 with stronger-than-expected results, reporting first-quarter revenues of $145.9 million (up 15% year over year) and an adjusted EBITDA margin of 55%. But the spotlight of the quarter wasn’t just financial outperformance — it was the company’s bet on artificial intelligence as its “third act.”
The launch of Doximity AI Scribe and the acquisition of Pathway highlight management’s ambition to make AI central to the physician workflow. Scribe, a HIPAA-compliant ambient note-taking tool, has already gained traction with over 10,000 beta testers, with 75% using it weekly.
Physicians have reported that it meaningfully reduces “pajama time,” the after-hours burden of documentation. By offering Scribe for free, Doximity is prioritizing adoption and stickiness, setting the stage for a potential enterprise revenue model similar to its Dialer product.
Meanwhile, the $26 million Pathway acquisition enhances clinical AI capabilities, introducing a proprietary, cross-linked medical corpus that achieved a record 96% score on the U.S. medical licensing exam. Already integrated into Doximity GPT, Pathway strengthens the platform’s ability to deliver accurate, evidence-based answers — a critical differentiator in a market where physician trust is paramount.
Financially, Doximity remains disciplined. Free cash flow rose 52% year over year, net revenue retention stayed strong at 118%, and the company continues to return capital through share repurchases. While management expects 11% revenue growth for fiscal 2026, caution remains around policy-driven uncertainty.
Ultimately, Doximity’s AI suite, comprising Scribe, GPT, and Pathway, positions the company to integrate itself more deeply into the daily workflow of physicians. If adoption scales and enterprise monetization follows, AI could indeed be the catalyst for Doximity’s next phase of growth. The coming quarters will test whether this early momentum can translate into durable, revenue-generating engagement.
A 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 second quarter, Certara’s software revenues rose 22% year over year to $46 million, driven largely by strong AI-tool uptake, while services rose 5%. Certara’s 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 billion dollars in R&D and is embedding AI across imaging devices, cloud apps and ultra-portable ultrasound systems. At RSNA 2024, GE HealthCare showcased new AI-enabled diagnostics and CareIntellect — an AI platform focused on oncology and operational insights — with a roadmap to launch nearly 200 AI/ML-enabled devices over the next three years. GE HealthCare’s second-quarter 2025 revenues grew nearly 2% organically to $5 billion.