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Doximity Exceeds Expectations with Stellar Q3

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  Published in Stocks and Investing on Tuesday, February 10th 2026 at 19:26 GMT by WTOP News
      Locales: California, UNITED STATES

San Francisco, CA - February 11, 2026 - Doximity (NASDAQ: DOCS), the dominant professional network for physicians, today announced a stellar third quarter for fiscal year 2026, ending January 31, 2026. The company not only met but exceeded analyst expectations, demonstrating continued strength and positioning itself as a critical infrastructure component within the evolving healthcare landscape.

Total revenue for the quarter reached $215 million, a 28% increase year-over-year. This substantial growth is fueled by consistent adoption of Doximity's core offerings, particularly its workflow marketing solutions and increasingly popular career services platform. The results underscore a strategic shift within healthcare towards leveraging digital networks for both administrative efficiency and talent acquisition.

Workflow Marketing: The Engine of Growth

Doximity's workflow marketing solutions, which seamlessly integrate relevant information and opportunities into physicians' daily routines, are proving to be a key differentiator. Instead of disruptive advertising, these solutions provide targeted information within the tools doctors already use - a method lauded by both physicians and the pharmaceutical/healthcare organizations utilizing the platform. This 'in-workflow' approach boasts significantly higher engagement rates compared to traditional marketing methods, translating into a robust revenue stream for Doximity. Analysts note a growing trend towards this type of 'permissioned marketing' within the healthcare sector, as both providers and patients become increasingly sensitive to unsolicited communications.

Career Services: Filling the Healthcare Talent Gap

Perhaps even more impressive is the exponential growth within Doximity's career services segment. The persistent and well-documented physician shortage across the United States, exacerbated by burnout and an aging workforce, has created immense demand for efficient recruitment tools. Doximity's platform connects healthcare organizations with qualified physicians, streamlining the hiring process and reducing time-to-fill rates. This service is particularly valuable given the increasingly competitive landscape for attracting and retaining top medical talent. The company reports a 45% increase in postings compared to the same period last year, indicating a deepening reliance on Doximity as a critical resource for healthcare HR departments.

Financial Performance - A Deeper Dive

The Q3 results reveal a healthy financial profile. Gross margin reached 72%, demonstrating strong pricing power and efficient cost management. Operating income landed at $88 million, a 35% increase year-over-year. Net income followed suit, climbing to $72.5 million, resulting in earnings per share (EPS) of $0.92, significantly exceeding the analyst consensus estimate of $0.84. While operating expenses did increase (approximately 15% due to investments in R&D and sales), revenue growth substantially outpaced this increase, resulting in improved overall profitability.

CEO Commentary and Future Outlook

"We are incredibly pleased with our performance in Q3," stated Jeff Tangney, Chief Executive Officer of Doximity. "The continued adoption of our workflow marketing and career services demonstrates the value we bring to physicians and healthcare organizations. We're not just building a network; we're building an essential utility for modern healthcare delivery."

Doximity's forward-looking guidance remains optimistic. The company anticipates continued double-digit revenue growth in the coming quarters, driven by further expansion of its existing product lines and potential introduction of new services. Planned investments include enhanced data analytics capabilities to provide even more targeted insights to both physicians and organizations, as well as exploration of new applications for artificial intelligence within the platform. The company is also actively exploring partnerships with Electronic Health Record (EHR) vendors to further integrate its services into the daily workflow of physicians.

Dominating the Physician Landscape

With 80% of U.S. physicians registered on the network - a figure that continues to climb - Doximity has established itself as the de facto professional network for the medical community. This expansive reach, combined with its innovative product offerings, creates a powerful network effect, making it increasingly difficult for competitors to gain traction. While smaller niche networks exist, none possess the scale or breadth of Doximity's platform. The company's success reflects a broader trend within healthcare towards digitization and the increasing importance of data-driven decision-making. Doximity is uniquely positioned to capitalize on these trends, solidifying its position as a key player in the future of healthcare.

Disclaimer: This article contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied in these statements.