Doximity is poised to enter a new business opportunity in the world of AI, not just to help doctors in their practice. Today, the healthcare technology company is serving more than 190 healthcare systems and has started developing a new business model in ads for pharma companies.
The move could give Doximity an advantage in two areas of healthcare—clinical software and pharmaceutical marketing. In its new financials, it’s interesting to note it’s still driving more of its AI products, particularly into more ad dollars.
This is a reaction to the increasing application of AI in the health care space to cut down on administration and help physicians gain access to medical records faster.
More Hospitals Are Bringing Doximity’s AI Into Clinical Workflows
As of November 5, Doximity’s AI suite has now been acquired by over 190 health systems, an increase from the previous quarter’s number of 165. It provides clinical documentation on Doximity Scribe and answers medical questions on Doximity Ask. NewYork-Presbyterian has also embedded these tools into its electronic health record (EHR) platform to allow practitioners to access AI assistance in their existing EHRs.
This integration could simplify the process of using AI, eliminating the need to have multiple applications. As the company invests in AI, CEO Jeff Tangney has announced that it is experiencing record engagement. Doximity also announced that it was expanding its partnership with Wolters Kluwer’s UpToDate in order to grow its medical information services.
Doximity Wants a Share of the Pharmaceutical Advertising Market
The more obvious avenue for business growth is advertising, and Doximity is an obvious target in that regard. In April 2026, the company introduced a new product called AI Search, which enables pharmaceutical companies to connect with doctors in a new way via AI-driven search experiences. Instead of displaying traditional ads, it assists drug companies in providing physicians with drug education content when they are looking for information regarding a medical topic. The product is already starting to catch on, as 16 of the top 20 pharmaceutical companies are already signed on, three more are in contract negotiations, and bookings have already exceeded a minimum of $10 million.
Doximity aims to be a part of the $14 billion that pharmaceutical companies typically pay for paid search advertising in the United States each year, a significant portion of which is directed to Google. The firm is also looking into auction ads, which would enable drug makers to bid for ads. This could result in a significant new source of revenue if successful, as pharmaceutical companies can use this to directly reach the relevant medical audience.
AI Adoption Is Growing, but the Financial Picture Is More Complicated
Doximity’s latest data shows the financial motivation behind Doximity’s AI growth. Revenue for the quarter was $174.5 million, a 4% increase year over year, and net income was $34.7 million, down from $62.1 million. Adjusted EBITDA fell $88.9 million to $100.8 million from a year ago. In the interim, AI spending has grown over sixfold as the company has grown its products.
The task now is to convert the increasing adoption rate at the hospital and the interest of the pharmaceutical industry into sustainable revenues, without creating additional stress on profitability. Pharma customers are going through an internal medical and legal process, and management anticipates AI Search revenue will experience a gradual increase through calendar year 2027. Therefore, the return on investment (ROI) for the AI investments made by Doximity could be delayed.
The Next Challenge Is Building Trust in Medical AI
Growth is not a surefire path to Doximity’s success. With the potential of AI tools processing sensitive medical information, healthcare organizations must adhere to privacy, accuracy, and patient safety measures. These worries are being addressed by Doximity’s collaboration with Wolters Kluwer, which integrates the evidence-based medical content from UpToDate into Doximity Ask, and the new DoseCheck feature meant to detect potentially harmful medication-dosing mistakes made by AI. But doctors need to confirm information generated by AI and have a responsibility to make clinical decisions.
The advertising business is also in danger because many AI Search campaigns are still so new that it’s not possible to measure their ROI. Doximity’s approach is to apply AI tools to doctors’ workflows, win their trust with the hospitals, and then bring in the pharmaceutical advertising dollars. If the company succeeds, it could venture beyond medical networking to clinical AI software and ads for the healthcare industry. It will be key to see if the approach is going to provide a sustainable growth path in the coming year.
