Doximity (DOCS) Stock Forecast & Price Target

Doximity Inc. has demonstrated a robust financial performance, with a 10% year-over-year revenue increase in FY3Q26, reaching $185.1 million, surpassing expectations and indicating strong demand for its digital platform among medical professionals. The company's ability to grow its customer base, particularly among top clients, is underscored by a 10% increase in customers spending over $500,000 on a trailing twelve-month basis and significant contributions from multi-module integrated offerings, which represented 45% of bookings, up from 18% the previous year. Additionally, Doximity has set new records in unique active users and usage metrics for its core services, highlighting its expanding market penetration and relevance in the U.S. medical professional landscape.

Doximity Inc. reported a decline in gross margins, decreasing to 91.5%, which marks a notable drop from both the previous quarter and the same quarter last year, raising concerns about profitability sustainability. The company's outlook for fiscal year Q4 FY2026 indicated a disappointing 4% year-over-year growth, attributed to industry-wide policy headwinds affecting pharmaceutical clients' budgeting decisions, highlighting potential vulnerabilities in demand. Additionally, the net revenue retention (NRR) for top customers fell to 112%, down from 118% the prior quarter and 117% year-over-year, reflecting a slowdown in customer engagement and diminished future revenue prospects.