Doximity stock jumps 11% on AI study win

Doximity’s stock surged Friday after the company reported sharp gains from its AI investments and independent researchers ranked its medical AI assistant the safest in the U.S.

The digital networking and telehealth platform for doctors said revenue rose 7% to $156.6 million in its latest quarter, while adjusted earnings before interest and taxes fell 6% as it poured cash into AI tools. But CEO Jeff Tangney told analysts that early returns on those tools are “remarkable,” citing an independent study of 24 clinical AI models where Doximity Ask had the lowest error rates and highest safety scores. The company also said AI search prompts jumped more than 25% in the quarter and AI note-taking users grew tenfold in July.

Tangney added that each AI search now earns the company more than ten times what it costs to run, calling it a “once-in-a-generation opportunity.” He expects costs to drop further as AI models improve, fueling investor enthusiasm. Shares of Doximity (NYSE: DOCS) closed up 11% Friday, adding to a 30% gain over the past month.

Analysts say the results show how quickly AI can pay off in healthcare, where trust and accuracy matter most. But some caution that high growth doesn’t guarantee long-term success. Doximity is betting big on AI becoming the backbone of medical workflows, and early signs suggest it’s working—at least for now.