Doximity (DOCS) just posted its Q3 2026 numbers, with revenue at US$185.1 million and basic EPS of US$0.33, supported by net income of US$61.6 million. The company has seen quarterly revenue move from US$136.8 million in Q2 2025 to US$145.9 million in Q1 2026, then to US$168.5 million in Q2 2026 and US$185.1 million in the latest quarter. Over the same period, basic EPS has ranged between US$0.24 and US$0.40, setting up a story in which high reported margins and steady profitability sit at the center of the earnings debate for investors.

See our full analysis for Doximity.

With the latest figures on the table, the next step is to see how this earnings profile lines up with the most widely held narratives about Doximity and where those stories may need updating.

37.5% net margin keeps profitability high

• On a trailing 12 month basis, Doximity converted US$637.8 million of revenue into US$239.4 million of net income, which works out to a 37.5% net margin compared with 36.6% a year earlier.
• What stands out for bullish investors is that this high margin profile sits alongside five year earnings growth of 30.2% per year. However, the latest one year earnings growth of 18.9% and a forward earnings growth forecast of about 4.9% a year show a slower pace that bullish narratives need to factor in.
  • The long run growth rate and 37.5% margin heavily support the bullish idea of a profitable, established model.
  • The moderation from 30.2% to 18.9%, and the forecast 4.9% growth, pushes bulls to focus more on earnings durability than on rapid expansion.

TTM revenue at US$637.8 million with steady EPS

• Over the last four reported quarters, revenue summed to US$637.8 million and basic EPS to US$1.27, while the last three standalone quarters in 2026 show EPS hovering in a tight band between US$0.28 and US$0.33 despite revenue moving from US$145.9 million to US$185.1 million.
• Bears often question how much growth is left, and the combination of TTM EPS at US$1.27, one year earnings growth at 18.9%, and a forecast growth rate around 4.9% gives them support on the growth slowdown side even as the business continues to generate over US$200 million a year of net income.
  • The TTM net income of US$239.4 million shows that profits remain sizable in absolute terms even with slower growth.
  • The stable quarterly EPS around US$0.30 while revenue steps up suggests profitability is holding, which challenges a bearish view that growth pressure would immediately erode earnings quality.

P/E of 21.4x with DCF fair value at US$47.19

• Doximity trades on a 21.4x P/E versus a peer average of 52.2x and a Global Healthcare Services industry average of 29.2x. The current share price of US$27.73 sits about 41.2% below a DCF fair value of US$47.19 and below the allowed analyst price target reference of US$46.90.
• What is interesting for bullish thinkers is that this apparent discount turns up even as growth expectations cool. This means the 21.4x multiple, high 37.5% margin, and US$239.4 million of TTM net income are all being valued at a lower earnings multiple than many peers, while bears can still point to the roughly 4.9% earnings growth forecast and slower recent 18.9% growth as reasons the market is not paying peer-like multiples.
  • The gap between the current price and the US$47.19 DCF fair value, alongside the peer P/E of 52.2x, is a key datapoint bulls use when they argue the stock looks inexpensive against its history of 30.2% annual earnings growth.
  • At the same time, the market pricing closer to 21.4x than 52.2x lines up with the idea that slower forecast growth justifies a lower multiple, which is the core of the bearish pushback.

If you want to see how other investors are joining the dots between these numbers, take a look at the latest community views on DOCS in our balanced narrative breakdown: Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Doximity's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Doximity pairs high margins with a 21.4x P/E. However, the cooler 18.9% recent earnings growth and 4.9% forecast growth limit the growth case.

If that slowdown has you wanting stronger earnings momentum, check out our 53 high quality undervalued stocks today and see which other companies the market may be pricing too cautiously.

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.