Doximity Inc. (NYSE:DOCS) shares are down on Thursday after the company reported mixed results for the fourth quarter and issued soft annual guidance.

Doximity, an operator of an online networking service for medical professionals, reported fourth-quarter revenue of $145.4 million, up 5% year over year, beating analyst estimates of $144.08 million.

The company on Wednesday reported adjusted earnings of 26 cents per share for the quarter, missing estimates of 28 cents per share. Adjusted EBITDA came in at $65.8 million, down 6% year-over-year.

Doximity expects first-quarter 2027 revenue between $151 million and $152 million, versus estimates of $153.7 million. The company also guided for fiscal 2027 revenue of $664 million to $676 million, versus estimates of $697.6 million.

Doximity guided for first-quarter adjusted EBITDA of $68.5 million to $69.5 million, and full-year adjusted EBITDA of $323 million to $335 million.

Doximity Sees Slower Growth Amid Soft Pharma Advertising Demand

The company in an investor call said, “With short-term demand in the HCP Digital Pharma ad market soft and visibility still limited. This market environment is the result of policy uncertainty remaining elevated and increased macro risk. Taken together, we expect overall market growth to be modest this year, likely at or below 5%, consistent with broader industry trends.”

AI Tool Adoption And Platform Engagement Continue To Grow

The company said benchmark workflow engagement reached over 800,000 unique quarterly active prescribers in the quarter, up roughly 30% year on year, a significant acceleration from the high single-digit growth a year ago.

Jeff Tangney, Co-Founder and CEO of Doximity, said nearly half of all these active prescribers used AI tools in the fourth quarter.

The company witnessed record-high engagement across the entire platform last quarter as doctors increasingly used the company’s AI assistant.

Analysts Cut Ratings And Price Targets Following Guidance

Baird downgraded DOCS stock from Outperform to Neutral and lowered the price forecast from $40 to $18.

Needham maintains DOCS with a Buy and lowers the price forecast from $55 to $27.

Keybanc downgrades Doximity from Overweight to Sector Weight. BTIG downgrades the company from Buy to Neutral.

Morgan Stanley maintains Doximity with an Overweight and lowers the price forecast from $49 to $35.

Mizuho maintains Doximity with a Neutral and lowers the price forecast from $34 to $26.

BMO Capital reiterates Doximity with a Market Perform and lowers the price forecast from $25 to $20.

Wells Fargo downgrades Doximity from Overweight to Equal-Weight and lowers the price forecast from $32 to $18.

DOCS Price Action: Doximity shares were down 24.48% at $17.66 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

Over the past month, DOCS has declined about 23.4% versus a 8.4% rise in the S&P 500 and is down roughly 61% year-to-date compared to the index’s 8.7% gain.

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