Doximity, Inc. (DOCS) experienced a significant 24-hour plunge of 8.12% on Thursday, despite reporting better-than-expected second-quarter financial results for fiscal 2026. The stark contrast between the company's strong performance and the market's negative reaction has left many investors puzzled.

In its Q2 report, Doximity announced revenue of $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 reached $100.8 million, significantly higher than the expected $87.1 million. These results demonstrate Doximity's solid performance for the quarter ended September 30.

However, the company's forward guidance seems to have spooked investors. Doximity forecasts Q3 revenue between $180 million and $181 million, which is only in line with analyst expectations. For the full fiscal year, the company projects revenue in the range of $640-646 million. This outlook suggests a potential slowdown in growth, which appears to be the primary driver behind the stock's sharp decline. The market's reaction indicates concerns about Doximity's ability to maintain its growth trajectory in upcoming quarters, overshadowing its strong Q2 performance and triggering a sell-off in after-hours trading.