Doximity Shares Surge 130% on AI Search Revenue, Raised Guidance
Doximity shares surged more than 130% in premarket trading on August 7, 2026, before settling up 78%. CEO Jeffrey Tangney said on the fiscal first-quarter earnings call for fiscal 2027 that its AI search tool generates over 10 times its operating cost per search. The company raised its full-year revenue guidance by $6 million to a range of $671 million to $681 million, a 5% increase. The stock had fallen 50% earlier in the year, and about 17% of tradable shares were sold short.
Doximity's shares surged more than 130% in premarket trading on August 7, 2026, before paring gains to trade up 78%. The stock had earlier risen more than 100%. The move followed CEO Jeffrey Tangney's comments on the fiscal first-quarter earnings call for fiscal 2027, where he said the newly launched AI search tool generates more than 10 times its operating cost in revenue per search. The company also raised its full-year revenue guidance by $6 million to a range of $671 million to $681 million, a 5% increase. Its market value was $3.7 billion before the stock surge, and the shares had fallen 50% earlier in the year. The company said the AI search product has improved profitability and expanded its addressable market. About 17% of tradable shares were sold short before the earnings release, and the sharp price rise forced some short sellers to cover positions, further boosting the stock.