Doximity, Inc. (DOCS) shares tumbled 6.22% in pre-market trading on Friday, continuing the downward trend that began in after-hours trading following the release of its fiscal 2026 second-quarter financial results. Despite reporting better-than-expected Q2 performance, investors seem to be focusing on the company's forward guidance, which suggests a potential slowdown in growth.

The company's Q2 results were impressive, with revenue reaching $168.525 million, surpassing the estimated $156.8 million. Adjusted earnings per share (EPS) came in at $0.45, beating the consensus estimate of $0.38, while adjusted EBITDA hit $100.8 million, significantly higher than the expected $87.1 million. However, these strong figures were overshadowed by concerns about future growth prospects.

Doximity's outlook for the third quarter and full fiscal year appears to have disappointed investors. The company forecasts Q3 revenue between $180 million and $181 million, which is only in line with analyst expectations. For the full fiscal year, Doximity projects revenue in the range of $640-646 million, up from previous guidance but suggesting a potential deceleration in growth. This outlook has raised concerns about the company's ability to maintain its growth trajectory, leading to the significant sell-off in pre-market trading. The sharp decline also indicates possible profit-taking, as Doximity's shares had gained nearly 20% year-to-date prior to this announcement.