Doximity plans to accelerate spending on artificial intelligence this year as it aims to become the leading AI platform for doctors.
The health tech company plans to increase spending on research and development and computing, along with further investments in brand marketing and AI-powered peer review capabilities, executives said during a recent earnings call ahead of the company’s fourth-quarter and full-year fiscal 2026 results. The company’s 2027 fiscal year began on April 1.
The company plans to expand its clinical AI suite, including ambient note-taking tool Scribe, clinical AI assistant, and medical search engine Ask (formerly DoxGPT).
Jeff Tangney, co-founder and CEO of Doximity, called 2026 the company’s “year of AI investment” and said these AI innovations will drive the company’s strategic growth, although he acknowledged that increased spending will weigh on short-term profits. “We think it’s the right deal. Over the long term, we think AI search alone will generate billions of dollars of new TAM (total addressable market) on top of the existing pharma marketing budget that we currently serve,” he told investors and analysts on a recent earnings call.
The company also announced plans to begin monetizing its AI-powered search product for pharmaceutical marketers, but management expects AI to make a “minimal” revenue contribution this fiscal year, Tangney told investors on a conference call.
Doximity is a digital platform for healthcare professionals in the United States that provides telemedicine solutions, workflow tools such as clinician-to-patient dialer tools and digital fax capabilities. Paid customers include pharmaceutical companies, health systems, and medical staffing companies that use its platform to sell their products and services.
Doximity has significant influence in the medical community with a network that includes over 85% of U.S. physicians and could provide distinct advantages when building AI-based physician workflow tools.
The company, which has been in the health tech market for 15 years, sees an opportunity to differentiate its product by addressing reliability and safety concerns for AI-driven clinical decision support.
The company developed PeerCheck to bring physician verification and peer review to AI-generated answers. PeerCheck incorporates physician reviews into Doximity’s evidence-based AI tool, Doximity Ask, and relies on a network of more than 10,000 medical professionals.
Doximity is also expanding its reach to more primary care physicians through a partnership with value-based care enablement company Aledade. Through this partnership, Doximity will integrate ambient note-taking tool Scribe and clinical AI assistant Ask into its electronic medical record overlay, Aledade Assist.
Aledade works with more than 3,000 primary care organizations nationwide that care for more than 3 million patients in value-based care programs.
“Doximity is bringing AI assistants not just to large hospitals, but to family doctors in small towns,” Tangney told investors and analysts on an earnings call.
The company has also partnered with Photon Health to enable e-prescribing capabilities within its workflow. More than 1,000 prescribers have participated in the e-prescription beta so far, and Tangney said usage is very high. Our partnership with Photon enables free end-to-end prescribing built directly into the Doximity platform.
Wall Street appears to be cautious about Doximity’s future growth prospects, as its stock price fell 24% following Thursday’s earnings release. More than 10 Wall Street companies have downgraded their stock prices, lowered their price targets, or both, TheStreet reported.
The company’s fiscal 2027 outlook fell short of Wall Street analysts’ expectations, as Doximity expects full-year sales to be between $664 million and $676 million, well below the consensus estimate of around $697 million. Adjusted EBITDA of $323 million to $335 million was also lower than expected.
Perry Gold, head of investor relations at Doximity, also warned that pharmaceutical marketing budgets continue to be under pressure as a result of regulatory environment and macroeconomic uncertainty. Gold noted that market growth will remain below 5% this year.
In the fourth quarter of fiscal 2026, Doximity generated revenue of $145.4 million, an increase of 5% from $138.3 million in the year-ago period. Net income for the fourth quarter was $19.1 million, compared with $62.5 million in the year-ago period. Doximity’s fourth-quarter adjusted earnings per share were 26 cents, down 31.6% from the year-ago period. The figure beat the Zacks Consensus Estimate by 7.1%.
For fiscal year 2026, Doximity reported revenue of $644.9 million, an increase of 13% from $570.4 million in the prior year. The company reported net income of $196.1 million, down from $223.2 million in the year-ago period.
But Doximity executives are bullish that the company’s AI investments will drive long-term growth, and Tangney said the company is seeing early returns on its AI builds.
“Nearly half of all physicians in the United States now work in hospitals that purchase our workflow and scheduling tools,” Tangney said. “As EHR (electronic health records) integration increases, we are increasingly using EHRs (electronic health records) on a daily basis. Our benchmark workflow engagement reached more than 800,000 unique quarterly active prescribers in the fourth quarter, an approximately 30% year-over-year increase and a significant acceleration from the low-single-digit growth seen a year ago.”
Tangney said nearly half of those 800,000 providers used Doximity’s clinical AI tools in the third quarter, and the company’s prompts per user nearly doubled from January to April.
He added: “Last quarter saw record high engagement across our platforms as doctors increasingly turned to us as their AI assistant.”
Nine months ago, Doximity acquired clinical AI company Pathway and integrated Pathway’s datasets and its AI into the free Doximity GPT product to offer DoxGPT (now Ask). Active users of the company’s AI writing and search tools have tripled, Tangney said. “Last month, these users each performed an average of 31 queries, which is almost double the usage in January,” he said.
Currently, 140 health systems have purchased Doximity’s clinical AI suite, including seven of the top 20 hospitals, the company said.
“More than 250,000 prescribers now have access to our clinical AI suite in a single, hospital-approved, HIPAA-compliant workflow,” Tangney told investors. “The race to build the best writing and search AI for physicians is on, and our 380-person R&D team is committed to winning this battle. We’ll be introducing many new physician-driven features and agents in the coming months.”
“To be clear, we paid $63 million for Pathway AI last summer, and now we’re spending on the opportunities it unlocked. This is the year of our AI investments,” Tangney said. “We have long been the largest physician network in the United States, and this year we are on track to become the largest physician AI platform. This is a multibillion-dollar opportunity, and we have the team, tools, and trust to win. That’s the company we’re investing in building this year.”
The AI physician assistant market is becoming increasingly competitive as new startups take on traditional players, such as Wolters Kluwer’s UpToDate, a clinical evidence solution that has been on the market for 30 years. As Business Insider reported, Doximity also competes with OpenEvidence in the AI-driven clinical reference space, and the two companies are also fighting in a federal lawsuit. 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 damage its reputation.
William Blair analyst Ryan Daniels said that despite the pharmaceutical industry headwinds Doximity faces and margin pressure from increased AI spending, the investment bank’s analysts are “optimistic about Doximity’s competitive position in the market due to strong usage metrics growth,” noting a 30% year-over-year increase in active users.
“Ultimately, we believe the continued development of AI-based workflow solutions supports Doximity’s ability to remain a share gainer in HCP marketing. Based on pre-market prices, the stock is valued at approximately nine times calendar 2027 adjusted EBITDA, underperforming its HCIT peers despite Doximity’s strong free cash flow profile,” Daniels said in an analyst note.
Doximity also announced its new leadership team, with Matt Sonefeldt joining Doximity as its new chief financial officer and Steve Zatz, MD, as its new president.
