Doximity FY27 “AI Investment Year” & Macro Uncertainty Drive Outlook Below Street Expectations, Which Management Did Not Frame as Conservative

Research evidence excerpt

Doximity FY27 “AI Investment Year” & Macro Uncertainty Drive Outlook Below Street Expectations, Which Management Did Not Frame as Conservative

J P M O R G A N North America Equity Research

13 May 2026

Doximity

FY27 “AI Investment Year” & Macro Uncertainty Drive Neutral

Outlook Below Street Expectations, Which DOCS, DOCS US

Management Did Not Frame as Conservative Price (13 May 26):$23.39

▼Price Target (Dec-26):$28.00

Prior (Dec-26):$33.00

Vertical SaaS & HealthTech

Alexei Gogolev AC

(1-212) 622-9391

alexei.gogolev@jpmorgan.com

Destiny JacksonWhile DOCS posted only a modest 4QF26 beat, the bigger headline was a

(1-212) 622-4360

meaningfully lower FY27E outlook vs. the Street as management frames the destiny.jackson@jpmorgan.com

current year as an “AI investment” phase (higher R&D/compute/marketing spend

Ella Smith

to fund AI Search/Scribe and PeerCheck), weighing on near-term margins which (1-212) 622-2451

may now go slightly below the 50% level management previously called the ella.smith@jpmchase.com

“floor”. DOCS’s tone acknowledges continued softness/shorter planning horizons Isabella A Camaj

in the HCP digital pharma ad market amid policy + macro uncertainty, but flags (1-212) 834-2379

improving 2H budget activity and an expected back-half ramp in commercial AI bella.camaj@jpmorgan.com

Search (still minimal in the guide). Management expects the overall market to J.P. Morgan Securities LLC

grow at or below 5%, which is below the historically cited 5% to 7% range, and

DOCS is expected to grow roughly in line with the market versus its historical

Key Changes (FYE Mar)

premium of about 2x. DOCS also announced Matt Sonefeldt as CFO and Dr. Steve

Prev Cur Δ

Zatz as President, and highlighted record engagement (800k+ active prescribers), Revenue - 27E ($ mn) 705 676 -4.2%