Doximity Stock Jumps 78% After CEO Reveals AI Search Tool Generates 10x Returns on Investment

Shares of this digital medical platform were up more than 100% at one point. Here's what's driving it

The incredible surge was boosted by short sellers having to unwind a sizable bet against the company. Shares of medical platform Doximity more than doubled at one point in premarket trading Friday after some bold comments on the margin for its new AI search tool. CEO Jeffrey Tangney said the product brings in 10 times what it costs to run. "It's early days on our AI search product, but I can tell you we're earning more than 10 times per search in revenue than it costs," he said on Thursday during the company's first-quarter fiscal 2027 earnings call. "Over time, we probably expect the overall AI cost, if anything, [to] go down as models get more efficient, so we feel good about the unit economics there," Tangney added. Doximity shares were up more than 130% in premarket trading before settling down a bit. The shares were last up 78%. Analysts think these spectacular returns are not yet baked into the company's already solid financials. Doximity reported first-quarter revenues of $156.6 million and adjusted EBITDA of $74.8 million, both of which were above consensus estimates. The company also raised its full year revenue guidance range up by $6 million, or 5%, to between $671 million and $681 million -- but the huge AI profitability potential is likely not a part of that boosted forecast, analysts said. "The FY27 raise (which is mostly comprised of the F1Q27 beat) does not reflect a significant contribution from the expanding AI commercial pipeline described on the earning call and in callbacks," Jessica Tassan at Piper Sandler wrote to clients in a Friday note. Tassan said she thought that management is taking a "conservative approach" to AI search revenue in its FY27 outlook. Shares of Doximity, which sported a market value of $3.7 billion before Friday's surge, were down 50% for the year before the results. CEO Tangney suggested that the AI search is resulting in not only higher profitability but also a larger addressable market. "Frankly, the [total addressable market] that this unlocks for us within health, within pharma has been a real surprise and upside for us," he said. Longer-term margins could swell along with the increasing market size. "[AI search is] reinforcing confidence that [Doximity's] elevated AI investments will ultimately support attractive long-term margins," Michael Cherney at Leerink Partnerships wrote to clients on Thursday. While great news for Doximity, the huge upswing the in the stock on Friday morning is bad for anybody who is shorting it. About 17% of shares available for trading were sold short heading into the earnings results, according to FactSet. As those short sellers are forced to unwind those positions, it likely added fuel to Doximity's surge. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Here's Why Doximity Stock Is Flying Today

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Shares of Doximity are rocking higher Friday. The reason? AI. Doximity (DOCS) stock was up more than 45% at around $30 recently, rising as high as $40 in the opening minutes of the session, after the telehealth company turned in fiscal first-quarter (ended June 30) financial results. The numbers themselves likely weren't the reason, with quarterly revenues rising 7% year-over-year and both net income and adjusted EBITDA falling. Instead, look to comments made on last night's conference call by CEO Jeff Tangney about the company's opportunities using artificial intelligence. "We're seeing record AI usage while topping the first large-scale independent head-to-head trial of clinical AI vendors," he said, according to a transcript provided by AlphaSense. The company says its AI services are being used more and generating more client engagement, suggesting growth opportunities ahead if not big numbers already in the books; CFO Matthew Sonefelt cited a "nascent but growing AI commercial pipeline" while boosting guidance. That contributed to this morning's big boost. The shares had lost more than half of their value in 2026 -- they finished last night a bit under $21 after closing 2025 above $44. While today's move doesn't bring them back into the green, they're now much closer to par.

Doximity shares soar 60% after CEO says its AI can outperform Anthropic

Doximity shares surged after the healthcare platform highlighted the strong performance of its clinical AI, overshadowing an earnings miss. Investors cheered its AI capabilities, positioning the company as a specialised healthcare AI player despite mixed quarterly financial results. Doximity shares surged on Friday after the physician-focused digital platform talked up its artificial intelligence tools, with investors looking past an earnings miss and weaker parts of the quarterly report. The stock jumped as much as 200% in pre-market trade before paring most of the gains. It was still up about 60%, putting it on track for one of the biggest single-day rallies in its history. US MarketsPowered By As on 07 Aug 2026, 07:39 PM IST S&P 500 Top Gainers Airbnb175.76(15.91%) Microchip Technology82.67(11.18%) Palantir Technologies168.29(7.93%) Newmont112.54(6.74%) Gainers" S&P 500 Top Losers Trade Desk14.08(-20.35%) Seagate Technology Hldgs769.37(-9.80%) Coterra Energy32.56(-8.62%) Western Digital425.39(-5.79%) Losers" The trigger was what its Chief Executive Jeff Tangney said on the company's earnings call. Tangney said Doximity's clinical AI recorded a 4.8% error rate in physician-focused testing, compared with 13.6% for what he called Anthropic's best model, Fable 5. Doximity had earlier said its Doximity Ask clinical AI platform outperformed OpenEvidence, Claude Fable 5 and other frontier models in an independent Stanford-Harvard study on clinical AI safety. Doximity is best known as a digital platform for US medical professionals, offering tools for communication, workflow, telehealth and medical information. The company has been trying to show investors that its AI products can become a larger growth driver for doctors, health systems and pharmaceutical clients. Also Read: Dow Jones| Nasdaq | US Stock Market Today | Live: S&P 500, Nasdaq edge higher as surprise payrolls drop eases rate-hike fears The latest rally suggests investors are now treating Doximity less like a slow-growth healthcare software company and more like a specialised AI platform for physicians. The company's numbers were mixed. Doximity reported adjusted earnings of 29 cents a share, while revenue rose 7% year-on-year to $156.6 million, according to Barron's. But the earnings miss mattered less after management highlighted AI adoption and performance.

Why Is Doximity Stock Soaring Friday? - Doximity (NYSE:DOCS)

Doximity CEO Says AI Is Unlocking A Bigger Market Than Expected During the earnings call, CEO Jeff Tangney said Doximity's artificial intelligence strategy is opening larger commercial opportunities than the company initially expected. He said AI Search is helping the company engage with senior executives at pharmaceutical companies and expanding its total addressable market in healthcare. Tangney added that AI is "up-leveling our business across the board" and said the market opportunity unlocked by AI "has been a real surprise and upside for us." Revenue increased 7% year over year to $156.6 million, beating the analyst consensus estimate of $151.7 million. Adjusted EBITDA totaled $74.8 million, representing a 48% margin. Earnings came in at 29 cents per share, slightly below the consensus estimate of 30 cents. AI Products Drive Growth Tangney said the company's clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while helping deliver another quarter of record engagement. Tangney said workflow active prescriber growth exceeded 30% year over year, while AI Search queries increased more than 25% sequentially. During the earnings call, Tangney said Doximity Ask achieved the lowest clinical error rates and the highest safety ratings among tested U.S.-based models, citing a 4.8% error rate versus 13.6% for Anthropic's leading model in the benchmark. He said the product's performance has supported broader adoption across health systems. The company said 165 health system clients now use its AI offerings. CFO Signals Higher AI Spending CFO Matt Sonefeldt said fiscal first-quarter results reflected stronger-than-expected AI adoption by clinicians, prompting Doximity to increase AI investments during fiscal 2027 to support long-term growth opportunities. The company ended the quarter with 127 pharmaceutical and hospital customers generating more than $500,000 in annual subscription revenue on a trailing 12-month basis. Doximity Outlook Raised For the fiscal second quarter, Doximity expects revenue of $170 million to $171 million, compared with the analyst consensus estimate of $171.9 million. The company raised its fiscal 2027 revenue guidance to a range of $671 million to $681 million from its prior outlook of $664 million to $676 million. The updated forecast is above the consensus estimate of about $670.3 million. DOCS Price Action: Doximity shares were up 34.29% at $27.74 at the time of publication on Friday, according to Benzinga Pro data. Photo courtesy of Doximity Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why Doximity Stock is Up More Than 70% in After-Hours Trading Thursday - Doximity (NYSE:DOCS)

Digital health care company Doximity Inc (NYSE:DOCS) reported first-quarter financial results Thursday after market close. Here are the key highlights and why the stock is soaring after hours. Doximity Q1 Earnings Doximity reported first-quarter revenue of $156.6 million, up 7% year-over-year. The revenue total beat the Street consensus estimate of $151.7 million according to data from Benzinga Pro. The company reported earnings of 29 cents per share, narrowly missing a Street estimate of 30 cents per share. Adjusted EBITDA was $74.8 million in the quarter, with a margin of 48%. "We're proud that our clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while we delivered another quarter of record engagement," Doximity CEO Jeff Tangney said. The CEO said the company had workflow active prescriber growth of more than 30% year-over-year and AI search query growth of more than 25% quarter-over-quarter. What's Next for Doximity The company is guiding for second-quarter revenue to be in a range of $170 million to $171 million. The Street estimate is $171.95 million according to Benzinga Pro. For the full fiscal year, the company raised its revenue guidance to a range of $671 million to $681 million. The previous range was $664 million to $676 million. The Street estimate for full-year revenue is currently $670.29 million. The company expects full-year adjusted EBITDA in a range of $309 million to $329 million. After a mixed quarter with strong revenue growth and a narrow earnings per share miss, investors are sending shares higher on raised guidance for the full year, which is above analyst estimates. Doximity Stock Price Action Doximity stock is up 72% to $35.55 in after-hours trading Thursday versus a 52-week trading range of $17.15 to $76.51. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why is Doximity stock skyrocketing 66% today? By Investing.com

Investing.com -- Doximity stock surged 66.0% in pre-open trading today after the company reported fiscal first-quarter 2027 results the prior evening that topped revenue expectations and prompted management to lift its full-year financial targets. Revenue came in at $156.6 million, a 7% year-over-year increase that cleared the Wall Street consensus of $151.7 million, while adjusted EBITDA reached $75 million with a 48% margin, beating the high end of the company's own guidance by 8 percentage points. Adjusted earnings per share of $0.29 fell just one cent short of the $0.30 estimate, but the shortfall was largely dismissed by investors given the strength elsewhere in the report. A key supporting driver was the growing commercial traction of Doximity's artificial intelligence suite. CEO Jeff Tangney noted that the company's AI clinical assistant, Doximity Ask, achieved the top ranking among U.S.-based models on the NOHARM benchmark, and management indicated that the AI Search product for pharmaceutical clients is gaining momentum and could become a more meaningful revenue contributor as the fiscal year progresses. The company also raised its full-year revenue guidance by $6 million to a range of $671 million to $681 million, signaling that management sees the AI-driven engagement translating into durable demand -- a sharp contrast to the cautious tone that had weighed on the stock since the prior quarter's disappointing results. The broader market provided a mildly constructive backdrop, with the S&P 500 adding 0.1% and the NASDAQ rising 0.5%, though neither index move was a meaningful factor in a move of this magnitude. The outsized reaction also reflects the stock's depressed starting point: shares had been trading near their 52-week low of $17.15 following a steep selloff after the prior quarter's earnings miss and guidance cut, meaning the bar for a positive surprise was low and short-covering amplified the upside. Taken together, a clean revenue beat, a raised annual outlook, and credible early evidence that AI investments are beginning to pay off combined to trigger a sharp reversal in a stock that had been among the hardest-hit in the digital health space. The results effectively reframed the AI spending narrative from a margin headwind to a potential growth catalyst, giving investors a concrete reason to reassess the stock's valuation from near multi-year lows. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.