Revenue growth has significantly decelerated to 5.1% in 2026Q4, while operating margins contracted to 17.1% as the company struggles to maintain historical profitability levels.
| Sales/Revenue | 644.86M | 570.4M | 475.42M | 419.05M | 343.55M | 206.9M | 116.39M | 85.69M |
| Revenue Growth % | 13.05% | 19.98% | 13.45% | 21.98% | 66.05% | 77.76% | 35.82% | - |
| Cost of Goods Sold | 70.33M | 55.87M | 50.67M | 53.49M | 39.79M | 31.2M | 14.9M | 10.89M |
| COGS % of Revenue | 10.91% | 9.8% | 10.66% | 12.76% | 11.58% | 15.08% | 12.8% | 12.71% |
| Gross Profit | 574.54M | 514.52M | 424.75M | 365.56M | 303.76M | 175.7M | 101.49M | 74.81M |
| Gross Margin % | 89.09% | 90.2% | 89.34% | 87.24% | 88.42% | 84.92% | 87.2% | 87.29% |
| Gross Profit Growth % | 11.66% | 21.14% | 16.19% | 20.35% | 72.89% | 73.12% | 35.67% | - |
| Operating Expenses | 359.62M | 286.73M | 260.88M | 240.45M | 190.22M | 122.4M | 79.33M | 67.89M |
| OpEx % of Revenue | 55.77% | 50.27% | 54.87% | 57.38% | 55.37% | 59.16% | 68.16% | 79.22% |
| Selling, General & Admin | 228.91M | 191.38M | 170.96M | 160.27M | 127.88M | 78.53M | 46.89M | 40.39M |
| SG&A % of Revenue | 35.5% | 33.55% | 35.96% | 38.25% | 37.22% | 37.95% | 40.29% | 47.13% |
| Research & Development | 130.7M | 93.04M | 81.98M | 80.19M | 62.35M | 43.87M | 32.44M | 27.5M |
| R&D % of Revenue | 20.27% | 16.31% | 17.24% | 19.14% | 18.15% | 21.21% | 27.87% | 32.09% |
| Other Operating Expenses | 0 | 2.3M | 7.94M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 214.92M | 227.8M | 163.88M | 125.11M | 113.54M | 53.3M | 22.16M | 6.92M |
| Operating Margin % | 33.33% | 39.94% | 34.47% | 29.85% | 33.05% | 25.76% | 19.04% | 8.08% |
| Operating Income Growth % | -5.65% | 39.01% | 30.99% | 10.19% | 113% | 140.5% | 220.23% | - |
| EBITDA | 214.92M | 238.46M | 174.14M | 135.39M | 118.58M | 57.01M | 23.06M | 7.47M |
| EBITDA Margin % | 33.33% | 41.81% | 36.63% | 32.31% | 34.52% | 27.55% | 19.82% | 8.72% |
| EBITDA Growth % | -9.87% | 36.93% | 28.62% | 14.18% | 108.01% | 147.17% | 208.66% | - |
| D&A (Non-Cash Add-back) | 0 | 10.66M | 10.27M | 10.28M | 5.04M | 3.7M | 900K | 551K |
| EBIT | 214.92M | 230.1M | 171.81M | 125.11M | 113.54M | 53.3M | 22.16M | 6.92M |
| Net Interest Income | 0 | 35.85M | 21.66M | 9.29M | 2.15M | 301K | 1.46M | 1.07M |
| Interest Income | 0 | 35.85M | 21.66M | 9.29M | 2.15M | 301K | 1.46M | 1.07M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 35.09M | 35.77M | 21.32M | 8.05M | 469K | 4.47M | 1.35M | 1.01M |
| Pretax Income | 250M | 263.57M | 185.2M | 133.16M | 114M | 57.77M | 23.51M | 7.93M |
| Pretax Margin % | 38.77% | 46.21% | 38.96% | 31.78% | 33.18% | 27.92% | 20.2% | 9.25% |
| Income Tax | 53.95M | 40.39M | 37.62M | 20.34M | -40.78M | 7.56M | -6.22M | 98K |
| Effective Tax Rate % | 21.58% | 15.32% | 20.31% | 15.27% | -35.77% | 13.08% | -26.47% | 1.24% |
| Net Income | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M | 50.21M | 29.74M | 7.83M |
| Net Margin % | 30.4% | 39.13% | 31.04% | 26.92% | 45.05% | 24.27% | 25.55% | 9.14% |
| Net Income Growth % | -12.16% | 51.23% | 30.81% | -27.11% | 208.27% | 68.85% | 279.64% | - |
| Net Income (Continuing) | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M | 50.21M | 29.74M | 7.83M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.98 | 1.11 | 0.72 | 0.53 | 0.70 | 0.12 | 0.06 | 0.00 |
| EPS Growth % | -11.71% | 54.17% | 35.85% | -24.29% | 483.33% | 101.34% | - | - |
| EPS (Basic) | 1.05 | 1.19 | 0.78 | 0.58 | 0.81 | 0.12 | 0.06 | 0.00 |
| Diluted Shares Outstanding | 199.05M | 201.21M | 205.73M | 213.43M | 191.02M | 178.21M | 181.7M | 181.7M |
| Basic Shares Outstanding | 187.01M | 186.84M | 190.17M | 193.18M | 163.48M | 178.21M | 181.7M | 181.7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Pharmaceutical marketing budget sensitivity
According to recent financial disclosures, Doximity's year-over-year revenue growth decelerated significantly to 5.1% in 2026Q4, marking a sharp departure from the double-digit expansion observed in previous periods and suggesting that the company's core pharmaceutical marketing niche may be approaching a critical saturation point within the U.S. market.
The rapid decline in top-line growth indicates that the company's primary revenue driver is losing momentum, likely due to limited new client acquisition or reduced spend from existing pharmaceutical partners. Investors should monitor whether the company can successfully pivot toward its hiring and telehealth segments to offset this stagnation.
As reported in quarterly income statements, Doximity maintained a robust gross margin of 86.7% in 2026Q4, demonstrating the inherent scalability of its digital platform despite the recent contraction in operating margins to 17.1% during the same period, which reflects increased pressure from rising internal operating expenses.
The high gross margin confirms the company's ability to deliver services with minimal incremental costs, reinforcing its position as a high-value vertical SaaS provider. However, the compression in operating margins suggests that the company is struggling to maintain efficiency as it scales its workforce or invests in new product development.
Based on the provided income statement data, Doximity's operating income fell to $24.8M in 2026Q4, a significant decline from the $71.9M reported in 2026Q3, indicating that the company is currently failing to achieve the operating leverage necessary to scale its profitability alongside its existing cost structure.
The disproportionate increase in SG&A and R&D relative to revenue growth suggests that the company is spending more aggressively to defend its market position or develop new features. This trend warrants further investigation into whether these investments will yield future revenue growth or if they represent a permanent shift toward higher overhead.
Financial filings reveal that Doximity's net income volatility, including the sharp drop to $19.1M in 2026Q4, is heavily influenced by non-cash items and fluctuating stock-based compensation expenses, which historically reached as high as $33.5M in a single quarter, complicating the assessment of true underlying cash profitability.
The reliance on stock-based compensation as a primary tool for talent retention creates a disconnect between reported GAAP earnings and actual cash generation. Analysts should focus on adjusted metrics to determine if the company's core business remains as profitable as the headline figures might otherwise suggest.
Data from recent periods suggests that Doximity's current valuation may be at risk, as the combination of decelerating revenue growth and contracting operating margins challenges the narrative of a high-growth SaaS leader, potentially leading to a re-rating of the stock by investors focused on fundamental performance metrics.
Short-sellers would likely focus on the company's inability to maintain its previous hyper-growth trajectory and the potential for further margin erosion if pharmaceutical spending remains soft. The reliance on a single, concentrated industry for the majority of its revenue remains a significant idiosyncratic risk that the market may be underpricing.
Quick answers to the most common questions about buying DOCS stock.
For fiscal year 2026, Doximity, Inc. (DOCS) reported total revenue of $644.9M. This represents a 652.5% increase compared to $85.7M in 2019.
Doximity, Inc. (DOCS) is profitable, generating $196.1M in net income for the fiscal year ending 2026 with a net profit margin of 30.4%.
Doximity, Inc. (DOCS) reported an operating income of $214.9M, resulting in an operating profit margin of 33.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Doximity, Inc. (DOCS) generated $574.5M in gross profit for the year, representing a gross profit margin of 89.1%. This demonstrates the company's core pricing power and production efficiency.