Doximity (DOCS) Stock Forecast & Price Target

Doximity is well positioned because its core physician network continues to generate durable engagement, with revenue of $157 million in Q1 up 7% year over year, adjusted EBITDA of $75 million at a 48% margin, and net revenue retention of 107% overall and 112% among top customers. The positive thesis is strengthened by a fortress balance sheet, as of June 30 the company held $688 million in cash and no debt, while AI Search and AI Scribe are creating new monetization avenues through richer intent data, higher-value pharma budgets, and expanding commercial products like Insights. In 2027 and beyond, the company appears able to translate rising AI usage, health system adoption, and stronger customer engagement into reaccelerating growth without relying solely on traditional pharma advertising.

Doximity is facing a weak fundamental setup because more than 90% of revenue still depends on pharma marketing budgets, and those budgets have been constrained by MFN pricing agreements, drug-pricing uncertainty, tariffs, and broader policy hesitation. Management now expects FY27 revenue of $676.0M at the midpoint, only 4.8% growth, while adjusted EBITDA guidance was cut to $319.0M as AI compute, hiring, marketing, and PeerCheck spending pressure margins. Visibility is also deteriorating because most contracts are short-cycle, competition from AI-native apps and Epic threatens future growth, and heavier reliance on renewals leaves the business exposed if customers buy fewer modules or renew on weaker terms.