Doximity Shares Surge 130% After Profitable AI Search Launch

Doximity shares surged more than 130% in premarket trading on Friday following the release of first-quarter fiscal 2027 earnings. The rally followed revelations from CEO Jeffrey Tangney that the company's new AI search tool is highly profitable, generating revenue more than 10 times its operating cost.

The company reported first-quarter revenues of $156.6 million and adjusted EBITDA of $74.8 million, both of which exceeded consensus estimates. Based on these results, Doximity increased its full-year revenue guidance by 5% to a range between $671 million and $681 million.

Tangney stated that the AI search tool unexpectedly expanded the company's total addressable market within the pharmaceutical and health sectors. Analysts noted that the stock's rapid price increase was likely accelerated by a short squeeze, as approximately 17% of available shares had been sold short before the announcement.