OpenEvidence, Doximity settle thorny AI legal battle

Raymond James reiterated an Outperform rating and $38 price target for Doximity (DOCS) after a potential legal settlement was announced. The stock trades at $31.34, below its 52-week high of $71.37. DOCS reported Q1 earnings beating expectations but lowered its EBITDA outlook. Analysts have mixed views on the stock.

Doximity Inc. faces a proposed class-action lawsuit from a shareholder alleging the company hid market share losses to competitors and misled investors about its advertising strategy.

Doximity's former chief revenue officer, Paul Jorgensen, was ordered to pay $490,000 to the SEC for insider trading. He sold shares based on nonpublic information ahead of negative earnings announcements, avoiding losses and making $2.2 million in profits. Jorgensen was also sentenced to 26 months in prison and ordered to forfeit $2.5 million in a parallel criminal case.

Doximity Inc (DOCS) shares dropped 5.6% after Freedom Capital downgraded it to Hold, raising its price target to $27. The company beat Q1 estimates, increased full-year revenue guidance, but lowered EBITDA outlook due to AI investment. Freedom Capital noted strong AI search traction but margin concerns and core business softening.

Doximity (DOCS) reported Q1 2027 revenue of $156.6 million, up 7% year over year, and adjusted EBITDA of $74.8 million. The company raised full-year 2027 revenue guidance to $671 million to $681 million. It said AI workflow and scribe usage grew, repurchased $91.6 million of stock, and ended June 30 with $688 million in cash and marketable securities.

Doximity (NYSE:DOCS) reported fiscal Q1 revenue of $156.6M, up 7% year over year, while GAAP net income fell to $24.3M. The company said workflow active prescribers grew over 30% YoY and AI Search queries rose more than 25% QoQ. It raised FY2027 revenue guidance to $671M-$681M. Analysts’ price targets range from $18 to $47.