Doximity Stock Plunges 24% After FY27 Guidance of $664M-$676M Misses Consensus
Doximity reported fiscal Q4 revenue of $145.4M (up 5% year-over-year) and adjusted EBITDA of $65.8M, then issued fiscal 2027 guidance of $664M-$676M revenue and $323M-$335M EBITDA, both below consensus. Baird and KeyBanc downgraded the stock, citing rising AI infrastructure spending and slowing pharmaceutical advertising growth.
1. Q4 Earnings and Sales Growth
Doximity reported fiscal fourth-quarter revenue of $145.4 million, up 5% year-over-year, and delivered adjusted EBITDA of $65.8 million, marginally above consensus projections. This performance reflected persistent challenges in attracting higher pharmaceutical advertising budgets as uncertainty weighed on spending.
2. Fiscal 2027 Outlook
The company forecast fiscal 2027 revenue between $664 million and $676 million, below consensus near $697 million, and projected adjusted EBITDA of $323 million to $335 million, trailing analyst estimates. Management warned that increased spending on AI infrastructure, engineering hires and brand marketing would compress margins throughout the year.
3. Analyst Downgrades
Baird cut its rating to Neutral from Outperform and slashed its price target to $18, noting a very long road before AI investments generate returns. KeyBanc downgraded to Sector Weight from Overweight, highlighting limited near-term catalysts and a shift by drugmakers toward lower-cost, AI-driven advertising solutions.