Pomegra
Doximity beat fiscal third-quarter estimates, added $500 million to its share repurchase authorization, and projected calendar 2026 revenue growth to accelerate meaningfully from the 14–16% nine-month pace toward approximately 20%, as record AI adoption and a pharma bookings rebound position the healthcare app for medical professionals to re-rate higher.
- Q3 FY2026 revenue of $185.1M grew 10% YoY and beat the high end of guidance by 2%; nine-month revenue advanced ~16% to ~$499M
- Board authorized a new $500M open-ended repurchase program; $196.8M repurchased in Q3 and $341.1M through nine months
- 720,000 workflow prescribers and 300,000+ AI users set records; January pharma bookings were the strongest since Doximity's IPO
Doximity added a $500M buyback and guided FY2026 revenue growth to near 20% as AI adoption records and pharma recovery signals bolster the healthcare app for medical professionals.
Lead
Doximity (NYSE: DOCS), the digital healthcare app for more than 3 million registered medical professionals, on February 5, 2026, reported fiscal third-quarter revenue of $185.1 million — a 10% year-over-year gain that exceeded the high end of the $180–$181 million guidance range — and announced a $500 million open-ended share repurchase authorization. Management simultaneously projected that fiscal 2026 revenue growth, running at approximately 14–16% through nine months, will accelerate materially toward ~20% in the back half of calendar 2026 as deferred pharmaceutical spending flows through and AI products reach commercial launch.What Happened
For the quarter ended December 31, 2025, Doximity delivered $185.1 million in revenue and $111.4 million in adjusted EBITDA, representing a 60% margin — 7% above the high end of its own guidance. Non-GAAP diluted earnings per share came in at $0.46. The results were solid on an underlying basis, with the company noting that record engagement drove the outperformance.
Through the first nine months of fiscal 2026, the company generated approximately $499.5 million in cumulative revenue, a roughly 15–16% advance on the prior-year period — putting the fiscal-year trajectory squarely within the 14–16% range before the expected second-half inflection.
For the full fiscal year ending March 31, 2026, management guided to revenue of $642.5–$643.5 million, representing 13% growth at the midpoint, with adjusted EBITDA of $355.5–$356.5 million (55% margin). The fourth fiscal quarter is guided at $143–$144 million, reflecting approximately 4% year-over-year growth — below trend due to a documented near-term disruption: 16 of the top 20 pharmaceutical manufacturers signed Most Favored Nation pricing agreements with the White House between late December and early January, causing deal signings that would normally have closed by December 31 to spill into fiscal Q4 and the spring upsell season. Management emphasized that the structural revenue has not been lost — only delayed.
Share Repurchase
As of December 31, 2025, Doximity had exhausted most of its prior repurchase authorization, with $83 million remaining after deploying $196.8 million during the third quarter alone and $341.1 million in the nine-month period. The board then approved a new $500 million open-ended repurchase program with no expiration date, bringing total available buyback capacity to approximately $583 million. Management characterized repurchases as "a valuable use of incremental cash," supported by $735 million in cash and marketable securities and a sustained free-cash-flow engine: $58.5 million in the quarter and consistent 50%-plus adjusted EBITDA margins maintained throughout fiscal 2026.
AI and Platform Momentum
Engagement records across the healthcare app underscore why management is confident the near-term slowdown is transitory. Doximity now counts more than 3 million registered members — covering more than 85% of all U.S. physicians and two-thirds of all nurse practitioners and physician assistants — making it the largest professional network for medical professionals in the country.
Workflow tool engagement reached 720,000 unique active prescribers in fiscal Q3, the largest sequential quarter-over-quarter gain in the company's history. Over 300,000 unique prescribers used Doximity's AI products during the period. DoxGPT, the company's clinical AI assistant, is queried an average of four times per week by active prescribers and was preferred over its nearest competitor at more than twice the rate in a blinded trial of 1,300 high-prescribing physicians. The Doximity Dialer telehealth platform earned its fifth consecutive #1 Best in KLAS ranking.
More than 100 of the nation's top health systems have purchased the AI Suite, granting access to over 180,000 prescribers. Over 10,000 U.S. physician experts participate in PeerCheck, the company's physician-led clinical review program, co-headed by researcher Dr. Eric Topol and former U.S. Surgeon General Regina Benjamin.
Critically, none of this AI traction is reflected in revenue. Management explicitly excluded AI commercialization from current guidance, calling the pending launch of AI member engagement products a separate catalyst that will address clients' 2026 innovation and search budgets.
Strategic Context
Net revenue retention stood at 112% on a trailing twelve-month basis, with the top 20 customers running at 117% — a signal that the platform's stickiness continues to compound. The customer cohort contributing at least $500,000 in trailing twelve-month subscription revenue grew 10% year-over-year to 126, representing 84% of total revenue.
Three catalysts are expected to drive the growth re-acceleration management is projecting for calendar year 2026: the release of pharmaceutical budgets held back during the MFN uncertainty period, greater planning confidence among pharma clients now that most MFN agreements are signed, and the anticipated launch of AI-powered member engagement products tapping into the search and innovation budget pool that remains entirely unaddressed in current guidance.
