Doximity falls despite Q2 beat amid uncertainty over client budgets

[Rolled newspaper with the headline Quarterly Results]
Zerbor/iStock via Getty Images

Shares of Doximity (DOCS [https://seekingalpha.com/symbol/DOCS]) traded ~14% lower on Friday despite reporting better-than-expected Q2 FY26 financials after the digital medical platform flagged concerns over healthcare-policy-related uncertainty impacting its clients' annual budgets.

On Thursday, after the market close, Doximity (DOCS [https://seekingalpha.com/symbol/DOCS]), a digital platform for U.S. medical professionals, reported $0.45 of adjusted EPS on $168.5M of revenue, exceeding Street forecasts by $0.07 and $10.9M, respectively, with ~50% YoY and ~23% YoY growth. [https://seekingalpha.com/news/4517873-doximity-non-gaap-eps-of-0_45-beats-by-0_07-revenue-of-168_5m-beats-by-10_91m]

The company also raised its Q3 and full-year revenue outlook to $180M - $181M and $640M - $646M, compared to the consensus estimates of $180.7M and $635.0M, respectively. However, DOCS said it was cautious with its implied Q4 outlook, as client discussions indicated certain uncertainty over clients’ annual budgets due to recent policy changes.

“Client discussions suggest some uncertainty over how recent policy changes may influence annual budgets, which are expected to be finalized over the next 2 months,” CFO Anna Bryson said during the earnings call. “As a result, we will continue to take a measured approach to the revenue we have yet to book, which is reflected in our implied Q4 guidance.”

Additionally, the company attributed the guidance hike to its newer integrated programs targeted at providing personalized experiences for its members.

“Because these AI optimized programs typically launch in January, customers are able to evaluate results sooner and make incremental buying decisions earlier and more consistently throughout the year,” Bryson noted. “This has led to a stronger than typical Q2. And as a result, we do not expect as large of a step-up between Q2 and Q3 as we've seen in prior years,” she added. [https://seekingalpha.com/article/4839829-doximity-inc-docs-q2-2026-earnings-call-transcript]

MORE ON DOXIMITY

* Doximity, Inc. (DOCS) Q2 2026 Earnings Call Transcript [https://seekingalpha.com/article/4839829-doximity-inc-docs-q2-2026-earnings-call-transcript]
* Doximity: Valuation Is Too Expensive For My Liking [https://seekingalpha.com/article/4824495-doximity-valuation-is-too-expensive-for-my-liking]
* Doximity outlines 13% full-year revenue growth target as AI suite accelerates client adoption [https://seekingalpha.com/news/4518195-doximity-outlines-13-percent-full-year-revenue-growth-target-as-ai-suite-accelerates-client]
* Doximity Non-GAAP EPS of $0.45 beats by $0.07, revenue of $168.5M beats by $10.91M [https://seekingalpha.com/news/4517873-doximity-non-gaap-eps-of-0_45-beats-by-0_07-revenue-of-168_5m-beats-by-10_91m]
* Seeking Alpha’s Quant Rating on Doximity [https://seekingalpha.com/symbol/DOCS/ratings/quant-ratings]