Shares of Doximity, Inc. (DOCS) are experiencing a severe pre-market plunge of 20.80% on Friday, as investors react to the company's disappointing revenue guidance despite beating earnings expectations for the fourth quarter of fiscal year 2025.

The networking platform for healthcare professionals reported strong Q4 results, with adjusted earnings per share of $0.38, significantly surpassing the analyst consensus of $0.27. Revenue for the quarter also exceeded expectations, coming in at $138.3 million compared to the estimated $133.7 million. However, the company's forward-looking statements fell short of market predictions, triggering the sharp sell-off.

Doximity's guidance for the first quarter of fiscal 2026 projects revenue between $139 million and $140 million, below the analyst consensus of $143.3 million. More concerning to investors was the company's full-year fiscal 2026 revenue guidance of $619 million to $631 million, which also missed the mark, with analysts anticipating $634.6 million. This outlook suggests a notable slowdown in growth, with the midpoint of the guidance representing only about 9.6% year-over-year increase, compared to the 20% growth seen in fiscal 2025. The conservative outlook, indicating potential challenges in maintaining previous growth rates, appears to be the primary driver behind the sharp pre-market decline.