Doximity, Inc. (DOCS) · Nov 5, 2026 · Earnings
Beat — Revenue $174.5M vs ~$170M consensus; diluted adj. EPS $0.36 vs ~$0.35
Doximity earnings narrowly beat revenue and adjusted EPS expectations, while heavier AI investment pushed profitability and margins lower.
Doximity is shifting from a physician-network business into a broader AI platform for clinical search, reference, and workflow tools. The company has been deliberately increasing AI infrastructure spending to capture that opportunity, with management previously warning that compute costs would pressure margins as AI usage scaled.
The quarter cleared a modest earnings bar. Revenue rose to $174.5 million from $168.5 million, ahead of the published expectation of roughly $170 million, while diluted adjusted EPS was $0.36 versus consensus near $0.35. That makes this a narrow earnings beat, not a major change in the growth picture. src: Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2027 second quarter ended September 30, 2026.
| Metric | Q2 FY2027 | Q2 FY2026 | Consensus |
|---|---|---|---|
| Revenue (Financial Statements) | $174.5M (+3.6%) | $168.5M | ~$170M |
| Diluted adjusted EPS (Non-GAAP reconciliation) | $0.36 | $0.45 | ~$0.35 |
| Adjusted EBITDA margin (Adjusted EBITDA reconciliation) | 51% | 60% | — |
| Free cash flow (Free Cash Flow) | $91.3M (-0.3%) | $91.6M | — |
AI adoption is advancing, but the economics are not yet proven. More than 190 health systems have purchased the AI suite, giving Doximity evidence of enterprise demand as it adds clinical-reference products and workflow tools. But the filing provides no revenue breakout for that business, so the customer count demonstrates reach rather than showing how quickly AI is becoming a material growth engine. 〔0〕
The cost of the transition is visible in profitability. GAAP operating income fell to $43.9 million from $63.7 million, adjusted EBITDA declined to $88.9 million from $100.8 million, and adjusted EBITDA margin dropped nine percentage points to 51%. Research and development expense rose 39%, while stock-based compensation increased to $40.6 million from $29.5 million. The company is still generating substantial cash, but the earnings beat came alongside materially weaker margins. 〔1〕
Cash generation held up better than reported profit. Operating cash flow was essentially flat year over year at $93.3 million, and free cash flow was $91.3 million versus $91.6 million. That limits the immediate financial strain from the AI investment, although the company also repurchased $54.2 million of stock during the quarter while cash and marketable securities remained substantial.
Bottom line: Doximity modestly beat a low earnings bar and showed continued AI customer adoption, but the quarter also confirms that the AI buildout is slowing profit growth and compressing margins. The event modestly advances the story, without yet proving that AI investment is accelerating the top line fast enough to offset its cost.ka
Management’s FY2027 outlook discussion on the earnings call
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!