Doximity, Inc. (DOCS) experienced a sharp 8.12% decline in after-hours trading on Thursday, following the release of its fiscal 2026 second-quarter financial results. The significant drop came as a surprise to many investors, given the company's better-than-expected performance across key metrics for the quarter.

For Q2, Doximity reported impressive results, with revenue reaching $168.525 million, surpassing the estimated $156.8 million. The company's adjusted earnings per share (EPS) came in at $0.45, beating the consensus estimate of $0.38. Additionally, adjusted EBITDA hit $100.8 million, significantly higher than the expected $87.1 million. Despite these strong figures, investors seemed to focus on the company's forward guidance, which appeared to disappoint the market.

Doximity's outlook for the third quarter and full fiscal year raised concerns about potential growth deceleration. The company forecasts Q3 revenue between $180 million and $181 million, which is only in line with the consensus estimate of $180.7 million. For the full fiscal year, Doximity projects revenue in the range of $640-646 million, up from the previous guidance of $628-636 million. However, this outlook suggests that growth may be slowing down, potentially explaining the negative reaction in after-hours trading. Investors appear to be worried about the company's ability to maintain its growth trajectory in the coming quarters, despite its strong performance in Q2. The sharp decline also indicates possible profit-taking, as Doximity's shares had gained 19.9% year-to-date prior to this announcement.