Doximity (DOCS): Assessing Valuation After Upbeat Q2 2026 Earnings and Upgraded Guidance

Doximity (DOCS) delivered fiscal Q2 2026 results that turned heads, with revenue jumping 23% year-over-year and notable EBITDA growth. The company also increased its annual revenue forecast, which exceeded Wall Street’s estimates.

See our latest analysis for Doximity.

After this upbeat earnings report, Doximity’s 1-day share price return jumped 2.24%, and the 7-day return is up 7.7% following a surge in investor confidence. However, challenging market conditions have weighed on the stock’s 30- and 90-day performance, reflecting a loss of momentum in the short term. Looking further out, total shareholder return over three years remains an impressive 58.9%, which underscores the company’s strong long-term growth story.

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With Doximity’s new guidance and analyst optimism fueling renewed interest, the question now becomes clear: is there untapped value in the stock at current prices, or has the market already accounted for its future growth potential?

Most Popular Narrative: 28.2% Undervalued

Doximity’s most closely followed valuation narrative pegs its fair value well above the latest closing price of $51.07, even as the market remains hesitant. The narrative draws on forward-looking projections, suggesting recent momentum is just one piece of a larger story unfolding behind the scenes.

The expanded adoption of AI-powered workflow tools (Scribe, Doximity GPT, and Pathway AI) is expected to further entrench Doximity as a core clinician productivity suite. This could drive higher frequency of platform use, deeper customer retention, and ultimately higher average revenue per user (ARPU) over time, supporting long-term revenue and margin expansion.

Read the complete narrative.

Want to know what’s fueling this sharp disconnect between price and value? The narrative hinges on bullish projections of user engagement, premium revenue per user, and bold margin targets. Which forecasts are moving the needle? Find out which figures could flip the script on valuation expectations.

Result: Fair Value of $71.11 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Doximity’s growth story could face hurdles if provider adoption plateaus or if regulatory changes disrupt pharmaceutical marketing spend in key channels.

Find out about the key risks to this Doximity narrative.

Another View: Price-to-Earnings Perspective

Looking through the lens of price-to-earnings, Doximity trades at 38x earnings, a premium above the global healthcare services average of 35.2x, and well above its fair ratio of 25.1x. While the stock looks reasonable compared to its direct peers (68.2x), this premium signals that the market might be pricing in strong future growth. Is this optimism justified, or a sign to tread carefully?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Doximity Narrative

If you see things differently or want to dig into the numbers on your own, building your own Doximity case is quick and straightforward. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Doximity.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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