Shares of Doximity Inc. surged in premarket trading on Friday after the digital medical platform's management revealed strong economics for its new AI-powered search product, with the stock gaining more than 130% at one point before paring some of those gains after the US market opened. The rally followed comments from CEO Jeffrey Tangney, who said Doximity is generating more than 10 times the revenue per AI search than the cost of running it. “It's early days on our AI search product, but I can tell you we're earning more than 10 times per search in revenue than it costs,” Tangney said during Doximity's first-quarter fiscal 2027 earnings call on Thursday, as per CNBC. He added that AI costs could decline further as models become more efficient. Doximity reported first-quarter revenue of $156.6 million and adjusted EBITDA of $74.8 million, with both figures exceeding consensus estimates. The company also raised its full-year fiscal 2027 revenue guidance by $6 million, or about 5%, to a range of $671 million-$681 million. Piper Sandler analyst Jessica Tassan said the guidance increase was largely driven by the first-quarter beat and did not include a significant contribution from the growing AI commercial pipeline. Tangney also indicated the technology had unexpectedly expanded the company's total addressable market across the healthcare and pharmaceutical sectors. Michael Cherney of Leerink Partners said the AI search product is