Doximity set for biggest daily jump ever as investors bet on AI optimism

The San Francisco-based firm increased its revenue forecast for fiscal year 2027 to between $671 million and $681 million, from between $664 million and $676 million expected previously, after topping quarterly revenue expectations.

Doximity shares are down about 25% for the year, including session moves.

Doximity Ask - a platform where practicing clinicians regularly vet AI-generated answers for accuracy and evidence-backing - emerged as the top-performing U.S.-based model in the NOHARM benchmark, implying low error rates and high safety, CEO Jeffrey Tangney said. He also said this year was the company's "AI investment year."

"The study has solidified Doximity's market leading reputation among health systems and providers, allowing it to pursue a similar playbook in AI commercialization as telehealth," Piper Sandler analysts said.

Healthcare platforms have been racing to embed AI into workflows, with investors betting the technology can drive growth by making platforms indispensable to physicians.

However, Leerink analyst Michael Cherny said Doximity still has plenty of work to do to prove the ultimate AI upside case.

Doximity shares surged on Friday after the digital health platform raised its revenue forecast and said its AI tool was ranked the top-performing U.S. model in a study focused on safety and error rates.

Shares of the company rose 57% to $32.51 and were set for their biggest one-day jump on record. They touched $68.05 in premarket trading, tripling from their last close of $20.66.

Trading in Doximity shares was briefly halted for volatility after markets opened.