Will AI Tools Like DocsGPT Drive the Next Leg of Growth for DOCS?

Doximity DOCS, long known as the “LinkedIn for doctors,” is betting big on artificial intelligence to accelerate growth after a strong fiscal 2025. DOCS has introduced tools like Doximity GPT, an AI assistant aimed at streamlining clinician workflows — from drafting referral letters to navigating documentation. This tool has helped the company with a 20% top-line expansion and a strong competitive position in its high-margin pharma marketing business.The company expects to grow at roughly twice the market rate.

For investors, the key question is whether these AI-powered tools can continue to materially impact revenues or will simply enhance engagement without driving near-term monetization. On the recent earnings call, management emphasized strong adoption of Doximity GPT and workflow tools, but refrained from quantifying the revenue impact. This suggests that the initiative is still in its build-and-scale phase, rather than being an immediate growth lever.

Importantly, DOCS’ monetization engine is still heavily reliant on pharma marketing dollars, which have faced cyclical softness. AI tools may help defend user engagement, deepen clinician stickiness, and eventually open new monetization paths, particularly in premium workflow subscriptions or value-added services for hospitals and payers.

While AI is unlikely to deliver an overnight boost in revenues, it positions Doximity for a more durable and diversified growth trajectory over time. If adoption accelerates and DOCS can layer in monetization without alienating its physician base, investors could see margin expansion with renewed top-line momentum.

For now, AI serves as a long-term catalyst rather than a short-term fix. However, with over 80% of U.S. physicians on the platform, DOCS is well-placed to capitalize if operational execution is carried out well.

Few Competing AI Tools

Several other companies are also building AI tools to remain competitive in this era. Here we discuss a couple of such companies and their development in AI.

Certara CERT has rolled out Certara.AI, a life-sciences focused generative-AI platform that includes CoAuthor for regulatory document drafting and tools like Signal and CODEX for market and clinical insights. In the first quarter, software revenues rose 18% year over year to $ 46 million, driven largely by strong AI-tool uptake, while services rose 4%. The board also authorized a $100 million share buyback, signaling confidence in continued AI-driven growth.

GE HealthCare GEHC, since its 2023 spin-off, has invested several billions in R&D and is embedding AI across imaging devices, cloud apps and ultra-portable ultrasound systems. At RSNA 2024, it showcased new AI-enabled diagnostics and CareIntellect — an AI platform aimed at oncology and operational insights — with a roadmap to launch nearly 200 AI/ML-enabled devices in the next three years. First-quarter 2025 revenues grew nearly 4% organically to $4.78 billion.

DOCS’ Price Performance, Valuation and Estimates

Shares of Doximity have gained 6.9% year to date compared with the industry’s growth of 28%.

DOCS’ forward 12-month P/S of 16.9X is higher than the industry’s average of 6X. The figure is also higher than its five-year median of 13.5X. DOCS carries a Value Score of D.

The Zacks Consensus Estimate for DOCS’ fiscal 2026 earnings per share suggests a 2.8% improvement from fiscal 2025.

Doximity stock currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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