Doximity Ramps AI Spending as Hospitals Shift Toward Enterprise Adoption

Doximity is increasing its artificial intelligence investment as health systems move toward enterprise-wide adoption of clinical AI, with the company reporting 165 health systems as AI customers in its fiscal 2027 first quarter. The company reported $156.6 million in revenue for the quarter ended June 30, up 7% from $146 million a year earlier. Net income fell to $24 million from $53 million, while adjusted EBITDA declined 6% to $75 million as Doximity increased spending on AI technology. Jeff Tangney, Co-founder and CEO of Doximity, told investors that healthcare AI adoption was beginning to follow a pattern seen in enterprise software, where organizations move from allowing individual employees to choose AI tools toward approving specific platforms for company-wide use. Doximity said its health system customer base includes eight of the top 20 hospitals in the U.S., with recent customers including Northwestern Medicine, Penn Medicine and the University of Michigan. Doximity Builds Clinical AI Around Hospital Workflows The company is positioning its Clinical AI Suite around three products: Ask, its clinical AI assistant; Scribe, its ambient documentation tool; and Dialer, its telehealth platform. Doximity launched the combined suite in May, describing it as a way to bring clinical AI into physicians' existing workflows. In June, it expanded the suite to desktop workstations, where physicians conduct charting, documentation, telehealth and evidence searches. The company had reported 150 health systems using the Clinical AI Suite in June, including eight of the top 20 U.S. hospitals. The suite is designed to operate within hospital-approved, HIPAA-compliant workflows. Doximity's expansion follows an earlier push to connect its AI products with other healthcare technology. In May, it announced an integration with Aledade that would bring Ask and Scribe into Aledade Assist, an electronic health record overlay used by physicians participating in value-based care programs. The partnership was part of Doximity's broader plan to make fiscal 2027 an AI investment year. The company also launched its AI search product for pharmaceutical customers in April. Doximity said it had onboarded its first group of customers across more than two dozen programs, with most contracted AI search revenue expected to be recognized during the fiscal third quarter. AI Spending Puts Pressure on Near-Term Margins Doximity raised its fiscal 2027 revenue outlook to $671 million-$681 million from a previous range of $664 million-$676 million. It expects adjusted EBITDA of $309 million-$329 million for the year. The higher investment comes as physician use of Doximity's AI tools increases. The company said quarterly active workflow prescribers rose more than 30% year over year to record levels, with nearly half using its AI products during the quarter. Doximity is also emphasizing clinical safety as hospitals become more involved in AI purchasing decisions. The company pointed to an independent study led by physicians from Stanford and Harvard that evaluated 24 clinical AI models across 1,100 simulated patient cases. Doximity Ask recorded a 4.8% error rate in the study and ranked second among the evaluated systems. The company said its physician review process, including its PeerCheck system, is intended to provide additional safeguards for clinical AI outputs. That approach reflects the growing importance of accuracy, privacy and oversight as healthcare organizations evaluate AI tools for broader deployment. Doximity's latest results therefore put its AI strategy on two tracks: expanding adoption among physicians while building the enterprise relationships needed to make clinical AI a standard part of hospital technology environments.

Doximity Ramps AI Spending as Hospitals Shift Toward Enterprise Adoption

Doximity Builds Clinical AI Around Hospital Workflows

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