Shares of Doximity, Inc. (DOCS) plunged 20.46% in after-hours trading on Thursday following the release of its fiscal fourth-quarter earnings report. While the company surpassed expectations for Q4, investors were rattled by disappointing guidance for the upcoming quarter and fiscal year 2026.

Doximity, a networking platform for healthcare professionals, reported adjusted earnings of $0.38 per share for Q4, significantly beating the analyst consensus of $0.27. Revenue also exceeded expectations, coming in at $138.3 million compared to the estimated $133.7 million. Despite these strong results, the company's outlook fell short of Wall Street projections.

For the first quarter of fiscal 2026, Doximity expects revenue between $139 million and $140 million, below the analyst consensus of $143.3 million. The full-year revenue guidance of $619 million to $631 million 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 market's negative reaction highlights investors' concerns about Doximity's future growth trajectory, overshadowing the company's otherwise solid performance in the fourth quarter. As the healthcare tech sector faces potential headwinds, Doximity's conservative outlook may signal challenges ahead in maintaining its previous growth rates.