---
title: "Doximity sinks on gloomy full-year revenue outlook, says AI compute costs are weighing on margins"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286394882.md"
description: "Doximity's stock fell in premarket trading after the company reported Q4 2026 earnings that missed expectations, with adjusted EPS at $0.26 versus the $0.28 forecasted. The company cited high AI compute costs impacting margins and projected FY 2027 adjusted EBITDA between $323 million and $335 million, below the $349.5 million expected. Revenue for FY 2027 is anticipated to be between $664 million and $676 million, also below forecasts. CEO Jeffrey A. Tangney emphasized that this year is focused on AI investments despite minimal expected revenue contributions."
datetime: "2026-05-14T10:01:36.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286394882.md)
  - [en](https://longbridge.com/en/news/286394882.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286394882.md)
---

# Doximity sinks on gloomy full-year revenue outlook, says AI compute costs are weighing on margins

Doximity plunged in premarket trading after it reported quarterly earnings results that missed Wall Street expectations and gave a disappointing full-year outlook as high AI costs weigh on margins.

For its fiscal Q4 2026, which represents the first three months of this year, the company reported adjusted earnings per share of $0.26, below the $0.28 analysts polled by FactSet were penciling in. Doximity said the profit miss was “driven by AI compute costs.”

And those higher AI costs will follow them into the current fiscal year, which ends next March. For FY 2027, it expects adjusted EBITDA to hit between $323 million and $335 million, lower than the $349.5 million analysts were expecting. Doximity expects FY 2027 revenue to come in between $664 million and $676 million — also below the $682 million that analysts had forecasted.

Doximity, which makes digital tools for healthcare professionals, is building AI products for tasks like medical scribing. Last year, Doximity acquired Pathway Medical, a medical AI startup, for $63 million “and now we're spending against the opportunity it unlocked,” CEO Jeffrey A. Tangney told analysts.

Tangney said the company has “forecasted minimal AI revenue contribution this fiscal year, while allowing for a wider range of AI investments and related expenses, meaning higher R&D, compute and marketing spend, that will weigh on near-term margins.”

“We think that's the right trade,” Tangney said. “This is our AI investment year.”

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