Doximity plans to accelerate its spending on artificial intelligence this year as it aims to become a leading AI platform for doctors.
The health tech company plans to up its R&D and compute spend along with more investments in brand marketing and its AI-enabled peer review capabilities, executives said during the company's recent earnings call for its fiscal 2026 fourth quarter and full year results. The company's 2027 fiscal year began April 1.
The company plans to scale its clinical AI suite, including its ambient notetaking tool Scribe and clinical AI assistant and medical search engine Ask (formerly DoxGPT).
Doximity co-founder and CEO Jeff Tangney called 2026 an "AI investment year" for the company, saying these AI innovations will be strategic growth drivers for the company while acknowledging the increased spend will weigh on near-term margins. "We think that's the right trade. Longer term, we believe AI search alone represents a multibillion-dollar new TAM [total addressable market] on top of the existing pharma marketing budgets we serve today," he told investors and analysts on the recent earnings call.
The company also unveiled plans to begin monetizing its AI-driven search product for pharmaceutical marketers, but management expects "minimal" AI revenue contribution this fiscal year, Tangney told investors on the call.
Doximity is a digital platform for U.S. medical professionals that offers workflow tools such as a telehealth solution, a clinician-to-patient dialer tool and digital faxing capabilities. Its paying customers include pharmaceutical manufacturers, health systems and medical recruiting firms that use its platform to market their products and services.
Doximity has a sizable reach into the medical community with a network that includes more than 85% of U.S. physicians, and that could give it a distinct advantage as it builds out AI-based physician workflow tools.
The company, which has been in the health tech market for 15 years, sees an opportunity to differentiate its offerings by addressing trust and safety concerns about AI-driven clinical decision support.
The company developed PeerCheck to bring physician verification and peer review to AI-generated answers. PeerCheck embeds physician review into Doximity Ask, Doximity’s evidence-based AI tool, and relies on a network of more than 10,000 medical experts.
Doximity is also expanding its reach to more primary care physicians through a partnership with value-based care enablement company Aledade. Through the partnership, Doximity will integrate the ambient notetaking tool Scribe and clinical AI assistant Ask into Aledade Assist, the company's electronic health record overlay.
Aledade works with more than 3,000 primary care organizations across the country that care for more than 3 million patients in value-based care programs.
"Doximity is bringing AI assistants not just to big hospitals, but to small-town family physicians too," Tangney told investors and analysts during the earnings call.
The company is also partnering with Photon Health to enable in-workflow e-prescribing capabilities. More than 1,000 prescribers have participated in the e-prescribing beta so far, with strong uptake in usage, Tangney noted. The tie-up with Photon enables free, end-to-end prescribing built directly into the Doximity platform.
Wall Street seems cautious about Doximity's future growth prospects as shares of Doximity dropped 24% on Thursday following its earnings call. More than 10 Wall Street firms either downgraded the stock, slashed their price targets, or both, The Street reported.
The company's fiscal year 2027 guidance came in below Wall Street analysts' expectations as Doximity expects full year revenue between $664 million and $676 million, well below consensus estimates near $697 million. Adjusted EBITDA guidance of $323 million to $335 million also trailed expectations.
Perry Gold, head of investor relations at Doximity, also cautioned that pharma marketing budgets remain under pressure as a result of the regulatory environment and macroeconomic uncertainty. Market growth is expected to remain at or below 5% this year, Gold noted.
For the fourth quarter of its 2026 fiscal year, Doximity brought in revenue of $145.4 million, up 5% $138.3 million in the same period a year ago. Net income in Q4 was $19.1 million, versus $62.5 million a year ago. Doximity delivered adjusted earnings per share of 26 cents in the fourth quarter, down 31.6% year over year. The figure missed the Zacks Consensus Estimate by 7.1%.
For the 2026 fiscal year, Doximity reported $644.9 million in revenue, up 13% from $570.4 million the prior year. The company reported net income of $196.1 million, down from $223.2 million a year ago.
But Doximity executives are bullish that the AI investments the company is making will boost long-term growth, and Tangney said the company is seeing early returns on its AI build-out.
"Nearly half of all U.S. doctors now work at hospitals that buy our workflow or scheduling tools," Tangney said. "As we become more integrated into their EHRs [electronic health records], we're increasingly a daily use for them. Our benchmark workflow engagement reached over 800,000 unique quarterly active prescribers in Q4, up roughly 30% year-on-year, a significant acceleration from the high single-digit growth we saw a year ago."
Nearly half of those 800,000 providers used Doximity's clinical AI tools in Q3, while the company's prompts per user nearly doubled from January to April, Tangney said.
He added, "We saw record high engagement across our entire platform last quarter as doctors increasingly turn to us to be their AI assistant."
Nine months ago, Doximity acquired clinical AI company Pathway and then integrated Pathway's datasets and its AI into its free Doximity GPT product to offer DoxGPT (now Ask). Active users of the company's AI scribe and search tools have tripled, Tangney noted. "Last month, these users averaged 31 queries each, nearly double January's usage," he said.
Currently, 140 health systems have purchased Doximity's clinical AI suite, including seven of the top 20 hospitals, according to the company.
"Over 250,000 prescribers now have access to our clinical AI suite in a single hospital-approved, HIPAA-compliant workflow," Tangney told investors. "The race is on to build the best scribe and search AI for doctors. Our 380-person R&D team is all in to win this, and you'll see a slew of new physician-led features and agents from us in the coming months."
"To put it plainly, we paid $63 million for Pathway AI last summer, and now we're spending against the opportunity it unlocked. This is our AI investment year," Tangney said. "We've long been the largest U.S. physician network. And this year, we're becoming the largest physician AI platform. It's a multibillion-dollar opportunity, and we have the team, the tools and the trust to win. That's the company we're investing to build this year."
Despite the pharma headwinds that Doximity faces and the margin pressure from increased AI spending, William Blair analyst Ryan Daniels wrote that analysts at the investment bank are "optimistic regarding Doximity's competitive positioning in the marketplace, with robust growth in utilization metrics", noting the 30% year-over-year growth in active users.
"Ultimately, we believe continued development of AI-based workflow solutions supports Doximity’s ability to remain a share gainer in HCP marketing. Based on the premarket price, shares are valued at roughly 9 times calendar 2027 adjusted EBITDA, below HCIT peers despite Doximity’s robust free cash flow profile," Daniels wrote in an analyst note.
Doximity also announced new leadership, with Matt Sonefeldt joining as Doximity’s new chief financial officer and Steve Zatz, M.D., coming on board as the company's new president.
The AI doctor's assistant market has become increasingly competitive with new startups going head-to-head with legacy players like Wolters Kluwer's UpToDate, a clinical evidence solution that's been on the market for 30 years. Doximity is also competing with OpenEvidence in the AI-driven clinical reference space, and the two companies are also engaged in dueling federal lawsuits, as Business Insider reported.
OpenEvidence sued Doximity in June 2025, alleging reverse engineering of its proprietary AI technology. Doximity countersued in September 2025, accusing OpenEvidence of spreading false information to harm its reputation.
In January, a federal judge advanced claims for both sides, allowing OpenEvidence to pursue computer fraud and contract claims, while allowing Doximity to pursue counterclaims on OpenEvidence’s alleged campaign of misinformation and harassment. OpenEvidence dropped earlier claims of stolen trade secrets, Bloomberg Law reported.
In amended counterclaims recently filed as part of its lawsuit, Doximity expanded its allegations, accusing OpenEvidence’s CEO of conducting a smear campaign on LinkedIn against the company. Discovery in the case revealed subpoenas of LinkedIn materials that detail an alleged coordinated advertising scheme built around independent “puppet” news sites and social media pages on LinkedIn used to disparage Doximity.
In a statement to Fierce Healthcare, OpenEvidence founder and CEO Daniel Nadler said “all [Doximity’s] claims are categorically false and flagrant lies intended to misdirect the public from the fact that in this case, Doximity is in fact the party being sued by OpenEvidence for attempting to hack into OpenEvidence and steal our algorithm to power their failing competing tool—which says a lot about their confidence in their own failing competing tool, versus in OpenEvidence.”
Regarding the current status of the legal case, Doximity issued the following statement: “OpenEvidence dropped its central trade secrets claims against Doximity in January, reinforcing what we've said from the outset: this case was designed to generate headlines. We believe this pattern reflects a coordinated effort to manipulate market perception. The minor claims they now pursue mirror actions OpenEvidence itself has employed on competitors’ platforms.”