Doximity, Inc. (DOCS Quick QuoteDOCS - Free Report) delivered adjusted earnings per share (EPS) of 26 cents in the fourth quarter of fiscal 2026, down 31.6% year over year. The figure missed the Zacks Consensus Estimate by 7.1%.

GAAP EPS for the quarter was 10 cents, reflecting a downtick of 67.7% from the year-ago figure.

Adjusted EPS for fiscal 2026 was $1.52, up 7% year over year.

GAAP EPS for fiscal 2026 was 98 cents, down 11.7% year over year.

DOCS’ Q4 Revenues in Detail

Doximity registered revenues of $145.4 million in the fiscal fourth quarter, up 5% year over year. The figure surpassed the Zacks Consensus Estimate by 1.2%.

The revenue growth was driven by stronger spending from existing customers, reflected in a 109% net revenue retention rate and growth in large accounts, with 125 customers contributing over $500,000 in subscription-based revenues and representing 83% of revenues.

Total revenues for fiscal 2026 were $644.9 million, up 13% year over year.

Following the earnings release, shares of DOCS fell 19.3% in after-hours trading yesterday. The company’s shares have lost 47.2% in the year-to-date period compared with the industry’s decline of 23%. However, the broader S&P 500 Index has increased 8.7% in the same time frame.

Image Source: Zacks Investment Research

DOCS’ Margin Trend

In the quarter under review, Doximity’s adjusted gross profit rose 2.7% year over year to $129.9 million. However, the adjusted gross margin contracted 210 basis points (bps) to 89.3%.

Sales and marketing expenses increased 22.1% year over year to $45.9 million, and research and development expenses rose 57.7% year over year to $39.1 million. General and administrative expenses increased 26.7% year over year to $16.1 million. Total operating expenses of $101.1 million rose 34.6% year over year.

The adjusted operating profit totaled $63.6 million, reflecting a 6.4% downtick from the prior-year quarter. The adjusted operating margin in the fiscal fourth quarter contracted 530 bps to 43.8%.

Doximity’s Financial Position

Doximity exited fourth-quarter fiscal 2026 with cash and cash equivalents of $219.2 million compared with $64.8 million at the fiscal third-quarter end.

Cumulative net cash provided by operating activities at the end of fourth-quarter fiscal 2026 was $109.5 million compared with $98.5 million a year ago.

DOCS’ Guidance for Q1 & FY27

Doximity has provided its financial outlook for the fiscal first quarter and the full year of fiscal 2027.

For the fiscal first quarter, the company expects revenues in the range of $151 million to $152 million. The Zacks Consensus Estimate is pegged at $153 million.

DOCS projects its full fiscal year revenues between $664 million and $676 million. The Zacks Consensus Estimate is pegged at $690.3 million.

Doximity, Inc. Price, Consensus and EPS Surprise

Doximity, Inc. price-consensus-eps-surprise-chart | Doximity, Inc. Quote

Our Take on Doximity’s Q4 Results

Doximity exited fourth-quarter fiscal 2026 with mixed results, wherein earnings missed and revenues surpassed the Zacks Consensus Estimate. Top-line growth was driven by strong platform engagement and AI adoption. However, both adjusted gross margin and adjusted operating margin contractions during the quarter were disappointing.

During the quarter, Doximity continued to strengthen its workflow engagement, with more than 800,000 unique quarterly active prescribers, reflecting nearly 30% year-over-year growth. AI adoption remained a major growth catalyst, with nearly half of these active prescribers utilizing the company’s AI tools in the quarter. Management highlighted that usage of its AI Search and Scribe tools tripled following the Pathway acquisition.

Doximity expanded its clinical AI suite to 140 health systems, including seven of the top 20 hospitals in the United States, providing more than 250,000 prescribers access to HIPAA-compliant AI workflows. The company introduced new initiatives, including a partnership with Aledade to deploy value-based care AI agents and the launch of ePrescribing capabilities integrated with Photon Health.

Amid ongoing macro uncertainty and softer pharma advertising demand, management remains optimistic about the long-term monetization opportunity tied to AI-powered healthcare search and workflow solutions.

DOCS’ Zacks Rank & Other Key Picks

Doximity currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are West Pharmaceutical (WST Quick QuoteWST - Free Report) , Globus Medical (GMED Quick QuoteGMED - Free Report) and Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) .

West Pharmaceutical, currently sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Globus Medical, currently sporting a Zacks Rank #1, reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.

GMED has an estimated long-term earnings growth rate of 10.2%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

Intuitive Surgical has a long-term estimated growth rate of 14.6%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.