Doximity Stock Drop: DOCS Plunges 20% on FY27 Guidance Miss and AI Investment Year Trap

# Doximity Stock Drop: DOCS Plunges 20% on FY27 Guidance Miss and AI Investment Year Trap

> **Quick answer:** Doximity (DOCS) fell more than 20% after-hours on May 13–14, 2026 after guiding FY27 revenue to $664M–$676M — roughly $33M below the $697M Wall Street consensus. CEO Jeffrey Tangney declared FY27 "our AI investment year," warning that AI compute costs will compress margins while AI revenue contribution remains minimal. The stock reached its lowest price since the 2021 IPO. This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.

Doximity's guidance miss is not just a healthcare tech story — it is the clearest warning yet that the "AI investment year" framing has become one of the most expensive phrases a CEO can utter in an earnings call. The Doximity stock drop on May 14, 2026 wiped out months of gains in a single session, and the pattern behind it is spreading across tech.

*This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.*

## What Happened: DOCS Stock Drops 20%+ After FY27 Guidance Miss

Doximity reported Q4 fiscal 2026 earnings on the evening of May 13, 2026. The headline numbers were passable: revenue of $145.4 million edged past the $144.1 million consensus. But that modest beat was immediately overshadowed by the full-year outlook.