Abstract

Doximity, Inc. will report fiscal Q3 2026 results on February 05, 2026 Post Market, with investors watching revenue, margin durability, and EPS trajectory amid platform usage trends and client budget visibility.

Market Forecast

Consensus and company-indicated projections for the current quarter point to revenue of USD 182.20 million, gross profit margins remaining near high-80s to low-90s, net profit or margin stabilizing around mid-30s, and adjusted EPS at USD 0.45, with forecast year-over-year growth rates of 19.23% for revenue and 32.43% for EPS. The main business is subscription fees, which continue to be the headline driver of top-line and profit resilience, supported by stable renewals and upsell momentum. The most promising segment remains subscription fees, with last quarter revenue of USD 159.47 million and tangible expansion opportunities; year-over-year growth was strong relative to broader health-tech peers.

Last Quarter Review

Doximity, Inc. delivered last quarter revenue of USD 168.53 million, gross profit margin of 90.25%, GAAP net profit attributable to the parent company of USD 62.06 million, net profit margin of 36.82%, and adjusted EPS of USD 0.45, with year-over-year growth of 23.16% for revenue and 50.00% for EPS. A key highlight was operating efficiency, with EBIT of USD 98.99 million surpassing the prior consensus, indicating disciplined cost control and solid monetization. The main business remained subscription fees, recording USD 159.47 million for the quarter; other revenue was USD 9.06 million, underscoring concentration in core offerings and the importance of contract renewals and cross-sell strategies.

Current Quarter Outlook

Subscription Revenue Engine

Subscription fees constitute the dominant revenue stream and are central to this quarter’s narrative. Given last quarter’s USD 159.47 million in subscription revenue and a 90.25% gross margin, management’s focus will likely be on renewal timing, upsell penetration among existing health system clients, and utilization-linked pricing tiers. The guidance framework implies sustained double-digit demand, as reflected in the revenue estimate of USD 182.20 million and EPS estimate of USD 0.45, suggesting continued leverage on a largely fixed-cost platform and effective sales execution. Investors should look for commentary on annual contract value (ACV) growth, retention rates, and any shifts in payer and life-science budgets that might influence marketing spend on the network.

Emerging Growth Opportunities

While the business remains concentrated in subscription fees, the smaller “other” revenue bucket at USD 9.06 million can house nascent products and services tied to engagement, workflow tools, or marketplace add-ons. Any acceleration here would provide incremental diversification, particularly if clinicians adopt modules that deepen daily utility beyond networking. A healthy increase in EBIT to USD 102.46 million in the forecast suggests anticipated operating leverage from new or expanded offerings, which could open additional monetization avenues through bundled solutions. Signals to monitor include product adoption metrics, cross-sell rates into existing client cohorts, and the contribution of new modules to overall revenue growth versus pure price/mix effects.

Key Stock Price Drivers This Quarter

The stock will likely react to the blend of headline growth and margin quality, with the 19.23% revenue growth forecast and 32.43% EPS growth forecast guiding sentiment. Evidence of durable gross margins near the 90.25% level coupled with a net margin profile around 36.82% would reinforce the narrative of efficient scaling and predictable cash generation. Commentary on client budgets—particularly from health systems and life sciences—will be pivotal, as visibility into seasonal campaign activity and renewal cycles can influence quarterly phasing and bookings. Additionally, clarity around product roadmap execution and clinician engagement KPIs may shape views on the longevity of growth, especially if management frames the pipeline in terms of measurable adoption outcomes.

Analyst Opinions

The collected views in the past half-year tilt cautiously positive, with a majority of analysts highlighting revenue resilience and margin stability while acknowledging typical calendar-seasonality and budget timing risks. Notable firms emphasize that double-digit revenue growth to USD 182.20 million alongside high gross margins supports a constructive stance on near-term earnings power, and upward bias in EBIT to USD 102.46 million points to disciplined expense management and potential operating leverage. Commentary often centers on execution consistency, retention strength among enterprise clients, and the platform’s ability to drive quantifiable engagement outcomes for customers, which underpins the EPS estimate of USD 0.45 and anticipated 32.43% year-over-year growth. In the bullish view, a sustained mix of renewals and upsells, plus targeted product enhancements that expand workflow utility for clinicians, remains a credible path to delivering on guidance and sustaining valuation premia relative to healthcare technology peers.