Doximity’s second quarter results were met with a notably positive market reaction following revenue that surpassed Wall Street expectations and ongoing momentum in its healthcare professional network. Management attributed the quarter’s growth to increased adoption of AI-powered clinical tools and rising engagement from both hospital and pharmaceutical clients. CEO Jeffrey Tangney highlighted, “Quarterly active workflow prescribers grew more than 30% year-on-year to record highs with nearly half using our AI tools,” underscoring the platform’s expanding influence among medical professionals.
Is now the time to buy DOCS? Find out in our full research report (it’s free for active Edge members).
Doximity (DOCS) Q2 CY2026 Highlights:
- Revenue: $156.6 million vs analyst estimates of $151.3 million (7.3% year-on-year growth, 3.5% beat)
- Adjusted EPS: $0.29 vs analyst expectations of $0.30 (4.2% miss)
- Adjusted EBITDA: $74.77 million vs analyst estimates of $69.59 million (47.7% margin, 7.4% beat)
- The company slightly lifted its revenue guidance for the full year to $676 million at the midpoint from $670 million
- EBITDA guidance for the full year is $319 million at the midpoint, below analyst estimates of $329.1 million
- Operating Margin: 21.5%, down from 37.4% in the same quarter last year
- Billings: $159.3 million at quarter end, up 7% year on year
- Market Capitalization: $4.45 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Doximity’s Q2 Earnings Call
- Brian Peterson (Raymond James) asked if the NOHARM study results would boost trust and usage. CEO Jeffrey Tangney pointed to rigorous physician oversight and privacy safeguards as key differentiators that appeal to hospital AI steering committees.
- Craig Hettenbach (Morgan Stanley) questioned the trajectory of AI investment and future operating leverage. Tangney explained that most AI spend directly supports clinicians, with current unit economics favorable and expectations that costs will decrease as models become more efficient.
- Michael Cherny (Leerink Partners) inquired about the interplay between Scribe and other AI products. Tangney described Scribe as a digital assistant for doctors, enabling integration with telehealth and decision support tools to drive workflow adoption.
- Ryan Daniels (Blair) probed the transition to longer AI contract terms. CFO Matthew Sonefeldt said initial contracts were conservative to protect user experience, but growing demand is leading to larger, longer-term deals.
- Elizabeth Anderson (Evercore ISI) asked about the size and growth of pharma AI budgets. Tangney cited third-party surveys indicating AI budgets are still under 10% of total pharma spend, but Doximity is the leading choice for early AI allocations.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace at which hospitals formalize enterprise AI adoption and integrate Doximity’s tools into clinical workflows, (2) the progression of pharma innovation budgets and the resulting impact on AI search monetization, and (3) the evolution of contract structures and customer engagement in the AI suite. Continued growth in AI prompt and scribe usage, as well as expansion into new therapeutic categories, will also be closely tracked.
Doximity currently trades at $24.94, up from $20.66 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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