Doximity Crashes 13% Despite Q4 Beat as Weak Guidance Rattles Investors

Doximity (NYSE:DOCS) delivered better-than-expected fourth-quarter earnings and revenue, but shares plunged 13% intra-day today after the company issued disappointing guidance for the upcoming quarter and full fiscal year, overshadowing strong financial and operational performance.

The digital platform for U.S. healthcare professionals posted Q4 adjusted EPS of $0.38, beating the $0.27 consensus. Revenue rose 17% year-over-year to $138.3 million, also ahead of the $134 million estimate.

Despite strong momentum—highlighted by record engagement and robust cash flow—investors focused on the weaker outlook. For fiscal Q1 2026, Doximity expects revenue of $139–$140 million, well below the $143.4 million forecast. Full-year 2026 revenue is projected between $619 million and $631 million, missing the $639.4 million consensus.

The company emphasized operational strength, with Q4 operating cash flow rising 54% year-over-year to $98.5 million and free cash flow up 56% to $97 million. For fiscal 2025, revenue increased 20% to $570.4 million.

While Doximity closed the year on a high operational note, the guidance reset triggered a sharp selloff, reflecting investor concern over slowing top-line growth in an otherwise cash-generative business.