Tempus AI (TEM Quick QuoteTEM - Free Report) and Doximity (DOCS Quick QuoteDOCS - Free Report) are two prominent players in the Medical Information Systems industry, each leveraging different business models and growth opportunities within this evolving space. According to Precedence Research, the global healthcare information systems market is projected to reach nearly $1,773.33 billion by 2034, highlighting the sector's significant long-term growth potential.

With the earnings season in full swing, investors will be closely tracking both companies' performance and growth prospects. Tempus AI's expanding AI-powered diagnostic capabilities and Doximity's digital healthcare platform and physician-focused solutions are expected to have been key drivers of their respective quarterly performances.

During the to-be-reported quarter, Tempus and Doximity’s shares have gained 33% and 31.3%, respectively.

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The Case for TEM

Tempus’ second-quarter 2026 growth was driven by continued strength in Oncology Diagnostics, despite normalized hereditary testing comparisons following Ambry’s integration. Diagnostics revenues increased 20% year over year to $289.3 million, while Oncology volume growth accelerated to 31% from 28% in the first quarter. Hereditary revenues grew 5%. MRD testing volume reached approximately 9,000 tests, up from 6,500 in the first quarter, despite only 10% of the sales force marketing the offering. 

The pending Personalis acquisition could further expand Tempus’ MRD capabilities. Additional reimbursement coverage and broader salesforce deployment are expected to support future volume growth.

Data and Applications also sustained strong momentum, with revenues rising 28% year over year to $93.2 million and Insights revenues increasing 36%. Tempus signed approximately $200 million in new licensing agreements during the quarter, including deals with BioNTech, Daiichi Sankyo, LevelSet Bio and Incyte. 

The company also delivered the first version of its oncology foundation model to AstraZeneca after meeting acceptance criteria. Strong demand for data licensing, Lens access and AI modeling, alongside management’s target of approximately 30% long-term data growth, is expected to support continued segment expansion.

Tempus' multi-year data licensing and platform contracts support demand visibility, but revenues are recognized as contractual obligations are fulfilled. Consequently, strong bookings may not translate proportionately into near-term revenues, creating quarterly growth and margin fluctuations. Also, the company reported a net loss of $120.3 million for the first six months of 2026, alongside negative operating cash flow of $80.8 million.

TEM vs. DOCS: Valuation

Tempus currently trades at a forward, one-year, price-to-sales (P/S) of 7.32X, higher than its median. Doximity’s 8.53X P/S sits above its median. Additionally, Tempus trades cheaper than Doximity. 

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The Case for DOCS

Doximity’s extensive physician network remains a key competitive advantage, reaching more than 85% of U.S. physicians and over two-thirds of NPs and PAs as of fiscal 2026. In fiscal first-quarter 2027, trailing 12-month net revenue retention was 107% overall and 112% among the top 20 customers. Quarterly active workflow prescribers also increased more than 30% year over year to record levels, supporting sustained clinician engagement and customer retention.

Expansion into clinical and workflow AI is further broadening Doximity’s growth opportunities. In the first quarter of fiscal 2027, the company had 165 signed health system AI clients, up from 140 systems that had purchased its Clinical AI Suite as of May 2026. Recent customer wins included Northwestern, Penn Medicine and the University of Michigan. Additionally, Doximity Ask ranked as the top-performing U.S.-based clinical AI in the NOHARM benchmark, which evaluated 24 models across 1,100 real-world patient cases. Its AI offerings, including Ask and Scribe, alongside telehealth and workflow tools, position the company to deepen health system adoption over time.

However, tight pharmaceutical budgets and cautious customer spending continue to constrain growth. Higher AI-related spending is weighing on near-term profitability. During the fiscal first quarter, non-GAAP gross margin declined to 88% from 91% a year ago, while adjusted EBITDA margin fell to 47.7% from 54.7%. Continued investment is expected to keep margins under pressure through fiscal 2027.

EPS Projections for TEM & DOCS

The Zacks Consensus Estimate for Tempus’ third-quarter 2026 loss per share indicates an 18.2% year-over-year improvement to 9 cents. Also, revenues are expected to grow 23.1% year over year. 

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The Zacks Consensus Estimate for Doximity’s fiscal second-quarter EPS indicates a 24.4% year-over-year decline to 34 cents. Revenues are expected to grow 1.3% year over year. 

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End Note

Tempus’ diagnostics and data licensing businesses remain its primary growth engines, supported by rising Oncology testing volumes, expanding MRD capabilities and strong demand for data licensing agreements. However, reimbursement delays, uneven revenue recognition and GAAP profitability challenges could temper its progress. 

Meanwhile, Doximity's extensive physician network, increasing adoption of AI-powered clinical tools and deeper integration into healthcare workflows provide a foundation for sustained growth. Yet, customer concentration, cautious pharmaceutical spending, near-term margin pressure and uncertainties surrounding AI monetization could constrain its performance. 

TEM and DOCS presently carry a Zacks Rank #3 (Hold) each. A comparison of their share price performance, valuation and estimate trends suggests that Tempus offers a relatively more favorable investment proposition than Doximity at current levels. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.