Doximity Earnings Lifted by AI Guidance
Doximity earnings saw a fiscal-2027 revenue guidance raise after Q1 results citing AI Search traction, prompting analyst upgrades and a stock rally.
KEY TAKEAWAYS
- Raised fiscal-2027 revenue guidance to $671M-$681M, citing early AI Search traction.
- Q1 revenue $157M, up 7.0% year over year.
- Workflow prescribers grew >30.0% y/y; AI Search queries rose >25.0% q/q.
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Doximity raised fiscal‑2027 revenue guidance after reporting Q1 results that showed early traction in its AI Search and Scribe tools, prompting analyst upgrades and a sharp stock rally.
Quarter Results and Guidance
Doximity reported fiscal Q1 2027 results for the quarter ended June 30, 2026, in a press release dated Aug. 6, 2026. Revenue rose 7% year over year to $156.6 million. Adjusted EBITDA declined to $74.8 million, a 47.7% margin compared with $79.8 million and a 54.7% margin a year earlier. GAAP net income fell to $24.3 million from $53.3 million, while non-GAAP net income dropped to $55.0 million from $71.9 million.
Management highlighted workflow active prescriber growth of more than 30% year over year and AI Search query growth exceeding 25% quarter over quarter. The company raised fiscal‑2027 revenue guidance to $671 million–$681 million from $664 million–$676 million, citing early AI product traction and onboarding of more than two dozen programs. Fiscal Q2 2027 revenue guidance was set at $170 million–$171 million, with adjusted EBITDA guidance of $80.5 million–$81.5 million. Full-year adjusted EBITDA guidance was placed at $309 million–$329 million for the fiscal year ending March 31, 2027.
AI Traction and Market Reaction
Adjusted EPS missed consensus by one cent despite revenue beating estimates, shifting market focus to the raised guidance and AI engagement metrics. The stock surge followed analyst upgrades and renewed investor interest in AI Search monetization. Conference-call reports described AI Search as generating attractive economics, presenting upside potential beyond current forecasts.
Investors and analysts will monitor whether early AI adoption and new program onboardings translate into sustained revenue growth and margin improvement in coming quarters.
“In Q1 we had accelerated revenue growth along with workflow active prescriber growth of more than 30% year-over-year and AI Search query growth of over 25% quarter-over-quarter,” the company said in its press release.
