Shares of Doximity, Inc. (DOCS) plummeted 20.51% in after-hours trading on Thursday following the release of the company's fourth-quarter fiscal 2025 results and forward guidance. Despite beating analyst expectations for the quarter, investors were spooked by the company's lower-than-anticipated revenue projections for the upcoming quarter and fiscal year.

Doximity reported strong Q4 results, with non-GAAP earnings of $0.38 per diluted share, significantly surpassing the FactSet analyst consensus of $0.27. Revenue for the quarter ended March 31 rose to $138.3 million, exceeding analyst expectations of $133.7 million. However, the company's forward-looking statements failed to impress the market.

For the first quarter of fiscal 2026, Doximity expects revenue between $139 million and $140 million, falling short of the $143.3 million forecast by analysts. More concerning to investors was the company's full-year fiscal 2026 revenue guidance of $619 million to $631 million, which also came in below the analyst consensus of $634.6 million. This conservative outlook, suggesting a potential slowdown in growth, appears to be the primary driver behind the sharp sell-off in after-hours trading.