Doximity, Inc. (DOCS) saw its stock plummet 7.64% in after-hours trading on Thursday, following the release of its fiscal 2026 second-quarter financial results. The sharp decline came as a surprise to many, given that the company reported better-than-expected earnings across key metrics for the quarter.

For Q2, Doximity reported 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. Despite these strong results, investors appeared to focus on the company's forward guidance.

Doximity's outlook for the third quarter and full fiscal year seems to have disappointed the market. 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. This guidance suggests that growth may be slowing down, potentially explaining the negative reaction in after-hours trading. Investors may be concerned about the company's ability to maintain its growth trajectory in the coming quarters, despite its strong performance in Q2.