Doximity (DOCS) has just wrapped up FY 2026 with Q4 revenue of US$145.4 million and basic EPS of US$0.10, while trailing twelve month revenue stood at US$644.9 million and EPS at US$1.05. Over recent periods, the company has seen quarterly revenue move between US$138.3 million and US$185.1 million, with basic EPS ranging from US$0.28 to US$0.40, setting the backdrop for a trailing net profit margin that sits at 30.4% versus 39.1% a year earlier. For investors, the latest earnings print is really about how this margin compression shapes the quality of the growth story from here.

See our full analysis for Doximity.

With the numbers on the table, the next step is to see how they line up against the prevailing bulls versus bears narratives around Doximity and which parts of the story those FY 2026 results actually support.

Margins Slide From 39.1% To 30.4%

• Over the last 12 months, net profit margin moved from 39.1% to 30.4%, while trailing twelve month net income was US$196.1 million on US$644.9 million of revenue.
• Consensus narrative expects AI tools and workflow products to support long term margin expansion. However, the recent margin compression and trailing year earnings decline versus the prior year highlight that, for now, higher usage and new features have not prevented profitability from tightening.
  • Analysts see earnings growing about 2.2% per year with margins easing toward roughly the low 30s, which sits below the 39.1% level seen a year ago.
  • Five year earnings growth averaged 25.7% per year, so the most recent margin step down and weaker trailing earnings stand in contrast to that historical pace.

Revenue Growth Trails Market At 5.2%

• Revenue is forecast to grow around 5.2% per year from a trailing base of US$644.9 million, compared with a cited 11.7% per year for the broader US market, indicating a slower expected top line pace.
• Bulls point to expanding workflow modules and AI tools as drivers of higher engagement and a larger addressable market. However, the 5.2% revenue growth outlook sits below both the bulls’ 8.7% annual revenue assumption and the broader market rate, which suggests the optimistic view leans on stronger future adoption than current forecasts imply.
  • The bullish narrative ties long term upside to AI powered products and new modules, but the current forecast keeps revenue growth closer to mid single digits rather than the high single digit path those bulls reference.
  • With earnings also projected to rise only about 2.2% per year, the gap between the bullish earnings target of US$262.5 million and the trailing US$196.1 million still requires a step up from today’s more modest expectations.

Bulls argue that AI tools and workflow adoption could justify much faster growth than the current 5.2% revenue forecast, so if that angle interests you it is worth seeing how their full thesis fits these numbers 🐂 Doximity Bull Case.

P/E Of 17x And DCF Upside Tension

• The stock trades on a P/E of about 17x with a share price of US$18.01, compared with peer and industry averages of 32.8x and 26.7x, and sits well below the DCF fair value of roughly US$34.35.
• Bears focus on rising costs, margin pressure and slower user growth, and the trailing margin decline alongside negative earnings growth over the most recent year gives that cautious view real footing, even though the current P/E and discount to DCF fair value suggest the market is already pricing in some of that concern.
  • Forecast earnings growth of about 2.2% per year and revenue growth of 5.2% per year are both below the referenced market averages, which fits with the bearish idea that growth may be more constrained.
  • At the same time, trading roughly 47.6% below the DCF fair value and at a P/E almost half the peer average shows valuation has already compressed quite a bit against those weaker trends.

Skeptics point to the weaker margins and softer growth forecasts as reasons for caution, so if you want to see how that case is built around these numbers it helps to read the full bear-side breakdown 🐻 Doximity Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Doximity on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mixed tone of these results leaves you uncertain, take a closer look at the numbers yourself and decide how compelling the risk reward profile really is. To see what the current optimism is focused on and whether it matches your view, review the company's 2 key rewards

See What Else Is Out There

Doximity pairs slower 5.2% revenue growth expectations with easing margins and modest 2.2% projected earnings growth, which could limit the upside some investors want.

If that slower growth profile feels underwhelming, you can quickly refocus on stocks with stronger upside potential by scanning companies in the screener containing 22 high quality undiscovered gems

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.