Is Doximity’s (DOCS) AI Surge Turning Workflow Tools Into Its Core Investment Story?

• In its recently reported 2Q26 results, Doximity beat revenue and EPS estimates with about 23% year-over-year growth, while maintaining near-60% adjusted EBITDA margins and free cash flow margins above 40% on a cash-rich, low-debt balance sheet.
• The quarter underscored how rapidly clinicians are adopting Doximity’s AI-enabled workflow tools, which are becoming an increasingly central part of their daily practice.
• Next, we’ll examine how the accelerating adoption of AI-powered workflow tools could reshape Doximity’s longer-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Doximity Investment Narrative Recap

To own Doximity, you need to believe its AI workflow tools can deepen its role as a daily, must-have platform for clinicians while preserving high profitability. The latest 2Q26 beat reinforces that core thesis, but the stock’s pullback highlights how sensitive near term results remain to healthcare policy shifts and client budget uncertainty, which are now the most important near term swing factors for the story.

Against that backdrop, the company’s reiterated FY 2026 revenue guidance of US$640 million to US$646 million stands out as especially relevant, since it brackets management’s view of how much policy driven budget caution could weigh on growth. For investors focused on catalysts, that guidance range has effectively become a key reference point for judging whether AI tool adoption and client demand can offset regulatory and budget related headwinds in coming quarters.

But beneath the strong margins and AI momentum, the concentration in pharma marketing budgets and policy risk is something investors should be aware of...

Read the full narrative on Doximity (it's free!)

Doximity's narrative projects $805.8 million revenue and $280.5 million earnings by 2028. This requires 11.0% yearly revenue growth and about a $45.4 million earnings increase from $235.1 million today.

Uncover how Doximity's forecasts yield a $71.11 fair value, a 56% upside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community valuations span about US$32.58 to US$78.58 per share, showing how differently individual investors frame Doximity’s upside. Against this wide range, the recent policy driven client budget uncertainty becomes a key lens for readers assessing how durable today’s growth and profitability might be.

Explore 8 other fair value estimates on Doximity - why the stock might be worth as much as 72% more than the current price!

Build Your Own Doximity Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Doximity research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Doximity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Doximity's overall financial health at a glance.

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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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