Doximity shares surged on Friday after the physician-focused digital platform talked up its artificial intelligence tools, with investors looking past an earnings miss and weaker parts of the quarterly report.
The stock jumped as much as 200% in pre-market trade before paring most of the gains. It was still up about 60%, putting it on track for one of the biggest single-day rallies in its history.
The trigger was what its Chief Executive Jeff Tangney said on the company’s earnings call. Tangney said Doximity's clinical AI recorded a 4.8% error rate in physician-focused testing, compared with 13.6% for what he called Anthropic's best model, Fable 5.
Doximity had earlier said its Doximity Ask clinical AI platform outperformed OpenEvidence, Claude Fable 5 and other frontier models in an independent Stanford-Harvard study on clinical AI safety.
Doximity is best known as a digital platform for US medical professionals, offering tools for communication, workflow, telehealth and medical information. The company has been trying to show investors that its AI products can become a larger growth driver for doctors, health systems and pharmaceutical clients.
The latest rally suggests investors are now treating Doximity less like a slow-growth healthcare software company and more like a specialised AI platform for physicians.
The company’s numbers were mixed. Doximity reported adjusted earnings of 29 cents a share, while revenue rose 7% year-on-year to $156.6 million, according to Barron’s. But the earnings miss mattered less after management highlighted AI adoption and performance.
