A month has gone by since the last earnings report for Doximity (DOCS Quick QuoteDOCS - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Doximity due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Doximity, Inc. before we dive into how investors and analysts have reacted as of late.

Doximity Q3 Earnings & Revenues Beat Estimates

Doximity delivered adjusted earnings per share (EPS) of 46 cents in the third quarter of fiscal 2026, which increased 2.2% year over year. The figure surpassed the Zacks Consensus Estimate by 4.5%.

GAAP EPS for the quarter was 31 cents, reflecting a downtick of 16.2% from the year-ago figure.

DOCS’ Q3 Revenues in Detail

Doximity registered revenues of $185.1 million in the fiscal third quarter, up 10% year over year. The figure surpassed the Zacks Consensus Estimate by 2.3%.

Doximity’s Segment Details

Doximity derives revenues from two sources: Subscription and Other.

In the third quarter of fiscal 2026, Subscription revenues totaled $175.4 million, up 8.1% year over year. This was driven by stronger spend from existing customers, reflected in a 112% net revenue retention rate and growth in large accounts, with 126 customers contributing over $500,000 and representing 84% of revenues.

The Other revenues totaled $9.7 million, up 52.6% year over year.

DOCS’ Margin Trend

In the quarter under review, Doximity’s gross profit rose 7.7% year over year to $166.4 million. However, the gross margin contracted 170 basis points (bps) to 89.9%.

Sales and marketing expenses increased 9.6% year over year to $42.2 million, and research and development expenses rose 54.3% year over year to $34.6 million. General and administrative expenses increased 29.9% year over year to $17.7 million. Total operating expenses of $94.5 million rose 26.8% year over year.

The operating profit totaled $71.9 million, reflecting a 10% downtick from the prior-year quarter. The operating margin in the fiscal third quarter contracted 855 bps to 38.9%.

Doximity’s Financial Position

Doximity exited third-quarter fiscal 2026 with cash and cash equivalents of $64.8 million compared with $169.2 million at the fiscal second-quarter end.

Cumulative net cash provided by operating activities at the end of third-quarter fiscal 2026 was $216.9 million compared with $174.8 million a year ago.

DOCS’ Guidance for Q4 & FY26

Doximity has provided its financial outlook for the fourth quarter of fiscal 2026 and updated its outlook for the full fiscal year.

For the fiscal fourth quarter, the company expects revenues in the range of $143 million-$144 million.

DOCS now projects its full fiscal year revenues between $642.5 million and $643.5 million, compared to the prior outlook of $640 million-$646 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -31.3% due to these changes.

VGM Scores

Currently, Doximity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Doximity has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Doximity is part of the Zacks Medical Info Systems industry. Over the past month, Hims & Hers Health, Inc. (HIMS Quick QuoteHIMS - Free Report) , a stock from the same industry, has gained 19.1%. The company reported its results for the quarter ended March 2026 more than a month ago.

Hims & Hers Health reported revenues of $608.1 million in the last reported quarter, representing a year-over-year change of +3.8%. EPS of -$0.18 for the same period compares with $0.20 a year ago.

For the current quarter, Hims & Hers Health is expected to post a loss of $0.02 per share, indicating a change of -111.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Hims & Hers Health has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.