A Look At Doximity’s Valuation As Analyst Optimism And Buybacks Follow Quarterly Results

Why Doximity’s latest earnings and buyback matter now

Doximity (DOCS) just paired its recent quarterly earnings with updated guidance and a sizeable share repurchase plan. This combination has caught analysts’ attention and reset the conversation around the stock.

The company reported third quarter sales of US$185.05 million and net income of US$61.56 million, alongside updated fiscal 2026 revenue guidance and a new US$500 million buyback authorization on top of already completed repurchases.

See our latest analysis for Doximity.

Even with the new buyback and updated guidance, recent trading has been rough, with Doximity’s 30 day share price return of 40.43% and 90 day share price return of 48.79% pointing to fading momentum from a last close of US$24.58 and a 1 year total shareholder return of 68.46%.

If this kind of volatility has you looking at other opportunities in healthcare and AI, it could be a good moment to scan through 25 healthcare AI stocks as a starting list of ideas.

With the share price down sharply over the last year, fresh buybacks in place and analysts still seeing room to the upside, the key question now is simple: is Doximity trading at a discount or is the market already pricing in future growth?

Most Popular Narrative: 61.3% Undervalued

Against Doximity’s last close of $24.58, the most followed narrative pegs fair value at about $63.57, using an 8.22% discount rate and long term cash flow assumptions that differ sharply from the current share price.

The stickiness and daily-use nature of Doximity's telehealth, scheduling, and workflow tools, amplified by ongoing healthcare workforce shortages, reinforce Doximity's value proposition and increase switching costs. This supports resilient net revenue retention (>118%) and reduces future churn, which underpins stable earnings and improving EBITDA margins.

Read the complete narrative.

Curious how a business with moderate growth assumptions lands on that kind of upside? The narrative leans on specific margin, earnings and valuation multiple targets that the market is currently pricing very differently.

Result: Fair Value of $63.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh the risks that heavy reliance on pharma marketing and higher stock based compensation could pressure margins and weaken the bullish case.

Find out about the key risks to this Doximity narrative.

Next Steps

If the mix of optimism and caution in this article feels familiar, it is a good time to review the data yourself and consider acting promptly. You can also see exactly what other investors are optimistic about through 4 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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