Doximity (DOCS) Stock Forecast & Price Target

Doximity Inc. reported a 10% year-over-year increase in FY3Q26 revenues, reaching $185.1 million, exceeding both analyst expectations and prior guidance, indicating strong operational performance. The company's growth is particularly supported by its top 20 clients, with a notable 10% year-over-year increase in the number of customers spending over $500,000 on a trailing twelve-month basis, highlighting the robustness of their customer base. Additionally, record levels of unique active users and significant growth in multi-module, integrated offerings—which accounted for 45% of bookings—underscore Doximity's positive trajectory and its potential to outperform the overall pharma advertising market.

Doximity Inc. reported a decline in gross margins to 91.5%, down 40 basis points from the previous quarter and 180 basis points year-over-year, indicating potential cost pressures or pricing challenges. The company’s outlook for fiscal Q4 FY2026 fell short of expectations, reflecting only approximately 4% year-over-year growth, largely due to industry-wide policy headwinds impacting pharma clients' budgeting decisions. Additionally, net retention rates (NRR) for the top 20 customers decreased to 112%, down from 117% last year and 118% from the previous quarter, suggesting weakening customer satisfaction and future revenue potential.