Doximity (DOCS) Stock Forecast & Price Target

Doximity Inc. reported a 10% year-over-year revenue increase in FY3Q26, achieving $185.1 million, which exceeded both market consensus and internal guidance expectations. The company demonstrated robust growth driven primarily by existing customers, particularly among its top 20 clients, with a notable 10% increase in the number of customers spending over $500,000 on a trailing twelve-month basis. Additionally, the significant rise in unique active users and record usage of various platform services, alongside improved bookings growth, suggests a strong demand for Doximity's integrated offerings and a solid foundation for future expansion in the digital healthcare market.

Doximity Inc. has experienced a decline in gross margins, which fell to 91.5%, down 40 basis points from the previous quarter and 180 basis points year-over-year, signaling possible pricing pressure or increased costs. The company's fiscal guidance for Q4 FY2026 indicates only a 4% year-over-year growth, significantly below investor expectations, attributed to industry-wide policy headwinds affecting pharmaceutical clients' budgeting. Furthermore, the net revenue retention (NRR) rate for the top 20 customers decreased to 117%, down from 118% in the previous quarter and 122% year-over-year, suggesting weakening client engagement and potential challenges in revenue stability.