Doximity, Inc. (DOCS) stock skyrocketed 55.49% during intraday trading on Friday, as investors brushed off a slight earnings miss and instead focused on the company’s aggressive push into clinical artificial intelligence. The medical networking and telehealth platform’s shares surged after CEO Jeff Tangney’s bullish commentary on AI during the earnings call, sparking a massive rally despite quarterly results that fell short of Wall Street’s bottom-line expectations.

The company reported fiscal first-quarter adjusted earnings of 29 cents per share, just below the 30 cents analysts had forecasted, while revenue rose 7% year-over-year to $156.6 million, surpassing the $151.8 million consensus. However, it was Tangney’s remarks that electrified the market. He described the AI opportunity as “once-in-a-generation” and highlighted that the Doximity Ask AI model had outperformed U.S. rivals, including Anthropic’s Fable 5, in a recent study by Stanford and Harvard researchers. Additionally, usage of the company’s AI-powered scribe and search tools surged, with scribe note-taking users up 10-fold in July from a year earlier.

The AI narrative was further supported by a raised full-year revenue guidance, now expected between $671 million and $681 million, and a wave of analyst target price increases. Brokerages including Leerink Partners, Raymond James, BMO, Canaccord Genuity, Piper Sandler, and JP Morgan all lifted their price targets, reflecting growing confidence in Doximity’s AI-driven growth strategy. The combination of revenue beat, higher guidance, and compelling AI vision overshadowed the earnings miss, propelling the stock to dramatic gains.