Shares of Doximity Inc (NYSE:DOCS) tanked in early trading on Thursday, after the company Wednesday reported downbeat fiscal fourth-quarter results.

Here are the key analyst insights:

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KeyBanc Capital Markets: Doximity reported its results broadly in-line with expectations. Its fiscal 2027 guidance of 3%-5% growth was disappointing, Schoenhaus said in the downgrade note. The company is unlikely to gain market share with budget managers looking to AI as a lower-cost solution, he added.

Management expects the healthcare digital pharma ad market to stay weak in the near term due to policy uncertainty and macroeconomic risks, with growth projected at 5% or less this year. "Additionally, pharma companies have shifted toward shorter-duration spend commitments, resulting in limited visibility," he further wrote.

Needham: Doximity reported revenue of $145.4 million and earnings of 26 cents per share. Needham expected $143.5 million and 32 cents per share, respectively.

Total revenue grew 5.1% year-on-year with existing customers continuing to lead growth, he added.

Fears that the company’s growth rate would decelerate towards the broader market growth were realized when management issued fiscal 2027 guidance below street expectations.

"Macro and regulatory uncertainty continue to pressure pharma marketing budgets and as a result of this, DOCS is using FY27 as a time to ramp its investment in AI as the company looks to unlock incremental budget with its new AI Search offering for pharma," McTernan said in the note.

Price Action

Shares of Doximity had declined by 24.33% to $17.70 at the time of publication on Thursday.

Read Also: These Analysts Slash Their Forecasts On Doximity After Q4 Results

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