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Top Fast-Growing AI Digital Health Companies to Watch (2026 Update)

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Originally published February 9, 2025  |  Updated September 13, 2026 by the Editorial Team

Quick Answer

The digital health landscape has split in two since our original 2025 list. On the public markets, Hinge Health (HNGE), Tempus AI (TEM), and Hims & Hers Health (HIMS) delivered the fastest 2026 revenue growth, while Doximity (DOCS) and Teladoc Health (TDOC) show how differently two "AI turnaround" stories can play out. Privately, OpenEvidence (~$12 billion valuation, reportedly in talks for up to $20 billion) and Abridge ($5.3 billion) have become the two biggest capital magnets in all of digital health by building AI tools physicians actually use daily. Of the five companies on our original 2025 list, two (Doximity, Teladoc) are still public and volatile, one (Sword Health) expanded into mental health at a steady $4 billion valuation, and two (Ada Health, K Health) have quietly plateaued.

When we first published this list in February 2025, "digital health company using AI" was still a loose, almost catch-all label — nearly every telehealth app, symptom checker, and wearable-data platform claimed some form of AI. Eighteen months later, the label has sorted itself out. A handful of companies have turned AI adoption into measurable revenue growth and, in some cases, public-market volatility that makes the sector genuinely worth tracking as an investment theme rather than just a tech trend. Others from our original list have plateaued. This update replaces stale 2025 figures with what we could verify as of September 2026, and adds the companies that have become the real center of gravity in AI-driven healthcare since then.

What Changed Since Our 2025 List

  • Doximity went from a steady physician-network stock to one of 2026's most volatile healthcare names — it jumped more than 50% in a single session in August 2026 after management said its AI Search tool was already profitable per query, though longer-term revenue-growth estimates have since been trimmed by several analysts.
  • Teladoc Health is still trying to turn AI tools into a growth story. The stock traded near $6 in September 2026 — a fraction of its pandemic-era peak — despite new AI products and an activist investor pushing for buybacks or a corporate breakup.
  • Sword Health held its $4 billion valuation, expanded into AI-driven mental health with a product called Mind, and acquired competitor Kaia Health in January 2026 — but it remains private with no confirmed IPO date.
  • Ada Health and K Health, both featured prominently in 2025, have not announced a new funding round or major growth milestone in 2026. They appear to have settled into smaller, steadier businesses rather than scaling into category leaders.
  • Two entirely new categories emerged that didn't meaningfully exist as investable stories in early 2025: AI answer engines for physicians (led by OpenEvidence) and ambient AI medical scribes (led by Abridge). Both are now larger, by private-market valuation, than most of the companies on our original list.

The 2026 Digital Health Funding Backdrop

U.S. digital health startups raised $7.4 billion across 244 deals in the first half of 2026, up from $6.4 billion in the same period a year earlier, according to Rock Health's venture funding tracker. Megadeals of $100 million or more accounted for 45% of all capital deployed despite representing only about 8% of transactions — a sign that investor money is concentrating hard into a small number of perceived category winners rather than spreading across the sector. Mental health held its position as the top-funded clinical category for a seventh consecutive year, with weight management and GLP-1-adjacent platforms close behind.

Rock Health's researchers framed the underlying shift well: as AI models become commodity infrastructure that any startup can plug into, investors have stopped asking "who has AI?" and started asking "who has something AI alone can't provide?" — proprietary clinical data, distribution inside health systems, regulatory relationships, or hardware. That question is a useful lens for every company profiled below.

At-a-Glance Comparison

Company Status Valuation / Market Cap 2026 Growth Signal AI Angle
OpenEvidence Private ~$12B (reportedly in talks up to $20B) ~$300M annualized revenue; 40%+ of U.S. physicians use it daily Free AI clinical-answer engine for doctors
Abridge Private $5.3B $100M+ ARR across 300+ health systems Ambient AI medical scribe / documentation
Hinge Health Public (NYSE: HNGE) ~$7.3B market cap Q2 2026 revenue +53% YoY to $212.8M AI-guided digital physical therapy
Doximity Public (NYSE: DOCS) ~$4.5B market cap FY2026 revenue $645M, +13% YoY AI Search and clinical workflow tools for physicians
Tempus AI Public (NASDAQ: TEM) ~$11.6B market cap Q2 2026 revenue +22% YoY; first GAAP profit AI-driven precision medicine & genomic data
Hims & Hers Health Public (NYSE: HIMS) ~$6.4B market cap Q2 2026 revenue +40% YoY to $753M AI-native telehealth intake & care platform
Teladoc Health Public (NYSE: TDOC) ~$1.1B market cap Revenue roughly flat; stock near multi-year lows AI tools (Pulse, Prism Care) for virtual-care efficiency
Sword Health Private ~$4B Expanded into mental health; acquired Kaia Health AI-first digital physical therapy & MSK care
Ada Health Private ~$600M (last disclosed, 2022) No major 2026 raise or milestone disclosed AI symptom-assessment platform
K Health Private Undisclosed Limited recent public data AI-driven primary care app

Market caps and prices reflect early-to-mid September 2026 trading data and will move; treat this table as a snapshot, not a live feed.

1. OpenEvidence — Private, ~$12B valuation

OpenEvidence is arguably the single biggest story in AI-driven digital health since our original list ran. Founded in 2022 by Kensho co-founder Daniel Nadler and AI researcher Zachary Ziegler, it built a free, ad-supported clinical-answer engine that draws on peer-reviewed sources like NEJM and JAMA to help physicians look up evidence at the point of care — often described as "ChatGPT for doctors." The company says its tool is now used daily by more than 40% of physicians in the United States and helped clinicians treat over 100 million patients in the past year.

Its valuation trajectory is one of the fastest in healthcare history: roughly $750 million in early 2025, $3.5 billion by mid-2025, $6 billion that October, and $12 billion in January 2026 after a $250 million round led by Thrive Capital and DST Global. By July 2026, reports surfaced that OpenEvidence was in talks for a further round that could value it near $20 billion, with annualized revenue reportedly around $300 million — roughly double where it stood seven months earlier. Investors include Sequoia, Google Ventures, Nvidia, and Mayo Clinic. The obvious risk: it still relies on advertising as its primary business model, and OpenAI's April 2026 launch of "ChatGPT for Clinicians" signals that large general-purpose AI labs are circling the same physician audience.

2. Abridge — Private, $5.3B valuation

Abridge makes ambient AI clinical documentation software: it listens to a doctor-patient visit and drafts a structured, chart-ready note in real time, cutting into the paperwork burden widely blamed for physician burnout. The Pittsburgh-based company, founded by cardiologist Dr. Shiv Rao, has raised roughly $830 million and is deployed across more than 300 health systems, including all 40 of Kaiser Permanente's hospitals, with annual recurring revenue that crossed $100 million in 2025.

Its $5.3 billion valuation was set by a $300 million Series E in June 2025 and reaffirmed by a $316 million extension in April 2026. In June 2026, Abridge announced it is co-developing a foundation model purpose-built for doctor-patient conversations with Nvidia, alongside a strategic investment from Eli Lilly — a signal that it's trying to move from a single-purpose scribe tool toward a broader clinical AI platform. Fast Company named it the #1 most innovative healthcare company for 2026, and KLAS has ranked it the top ambient AI platform for two consecutive years. Competition is intensifying quickly, though: rivals Ambience Healthcare, Commure, and Heidi Health each raised significant rounds in the same window.

3. Hinge Health — NYSE: HNGE

Hinge Health, which IPO'd in 2025, delivers musculoskeletal (MSK) physical therapy through computer-vision-guided exercise, wearable sensors, and AI-powered coaching layered with on-demand access to licensed physical therapists. It has become one of the clearest public-market growth stories in the sector: second-quarter 2026 revenue jumped 53% year over year to $212.8 million, and trailing-twelve-month billings rose 52% to $862 million.

Management raised full-year 2026 revenue guidance to $856–$860 million and has been expanding beyond its MSK roots into migraine and gastrointestinal care, partly through its acquisition of Cylinder Health. The stock has more than doubled year-to-date through early September 2026, with a string of analyst price-target increases (RBC to $110, Citizens to $107, Evercore to $105, Stifel to $115). Bulls point to an unusual combination of high growth and profitability — a "Rule of 40" score above 80 in 2025 — while bears flag that continued acquisitions and heavy reinvestment could pressure margins as growth normalizes.

4. Doximity — NYSE: DOCS

Doximity, the professional network often called "LinkedIn for doctors," has spent the past year pushing hard into AI products — most notably Doximity Ask, a clinical AI assistant, and an AI Search tool now being sold to pharmaceutical and hospital clients. Fiscal 2026 (ended March 31, 2026) revenue reached $644.9 million, up 13% year over year, with free cash flow of $317.5 million.

The stock has been genuinely wild in 2026. After first-quarter fiscal 2027 results in August, shares briefly more than doubled overnight before settling roughly 35% higher, driven partly by CEO Jeffrey Tangney's comment that each AI search generates more than ten times its cost in revenue — and amplified by a short squeeze, since around 17% of the public float was sold short heading into the print. Doximity raised its full-year revenue guidance to $671–$681 million but also flagged that AI compute costs are compressing margins, with net profit margin sliding from 39.1% to 30.4% over the trailing twelve months. Some analysts now model revenue growth decelerating to around 5% annually longer-term, well below the bull case — making this one of the more contested "is the AI story real or already priced in" debates in the sector.

5. Tempus AI — NASDAQ: TEM

Tempus AI applies machine learning to genomic and clinical data, primarily in oncology diagnostics, while also licensing de-identified real-world data and modeling services to pharmaceutical companies. Second-quarter 2026 revenue grew 22% year over year to $382.5 million, and the company posted its first GAAP net income ($5.6 million) after a $42.8 million loss in the same quarter a year earlier.

Full-year 2026 guidance sits at $1.595–$1.605 billion in revenue (about 25% growth) with roughly $65 million in adjusted EBITDA. The company ended Q1 2026 with more than $1.1 billion in contracted revenue and a 126% net revenue retention rate, and its pending acquisition of Personalis is aimed at strengthening its position in minimal residual disease (MRD) testing. The stock has pulled back significantly from a 52-week high above $104 to around $64 by early September, with analysts split between enthusiasm for its data-flywheel model and concern about a still-rich valuation relative to near-term profitability.

6. Hims & Hers Health — NYSE: HIMS

Hims & Hers is a direct-to-consumer telehealth and pharmacy platform that has become one of the more AI-forward operators in the space, layering AI across intake, messaging, and follow-up care. Management says its new AI-native weight-loss experience now handles roughly 80% of customer questions before routing complex cases to human clinicians and pharmacists, and that AI has tripled patient messaging activity.

The business itself has been volatile in every sense. Second-quarter 2026 revenue rose about 40% year over year to $753 million, with nearly 3 million subscribers and international revenue up roughly 17-fold following its Eucalyptus acquisition and expansion into Australia. But the stock fell to a 52-week low near $14.52 in February 2026 amid FTC scrutiny of its advertising and cancellation practices and a September 2025 FDA warning letter over compounded semaglutide marketing claims, before rallying more than 100% over the following months as the company pivoted toward branded weight-loss partnerships with Novo Nordisk and Eli Lilly. By early September 2026 it traded around $27–28, still down for the year overall despite the growth. Gross margin has compressed to around 64% as lower-margin branded and international products take a larger share of the mix — a trade-off worth watching closely.

7. Teladoc Health — NYSE: TDOC

Teladoc's story in 2026 is a reminder that "adding AI" doesn't automatically fix a business. The company has rolled out its Pulse data/AI engine and Prism Care platform, and is pushing its BetterHelp mental-health segment toward insurance reimbursement — targeting $75–90 million of insurance-based BetterHelp revenue in 2026 — while international revenue grew 17% year over year to $122.3 million.

Despite that, the stock traded around $6.20–$6.30 in September 2026, with a market capitalization near $1.1 billion — a fraction of its pandemic-era valuation. Activist investor Pineal Capital Management has pushed for at least $200 million in share buybacks and floated separating the company's Integrated Care and BetterHelp segments. Wall Street remains genuinely divided: Deutsche Bank's George Hill has modeled more than 80% upside, while BMO's Sean Dodge sees further downside. This is the clearest "show me" story among the public names on this list — the AI narrative exists, but it hasn't yet shown up convincingly in the numbers that matter to the stock.

8. Sword Health — Private, ~$4B valuation

Sword Health, a direct competitor to Hinge Health in AI-guided digital musculoskeletal care, has held roughly steady at a $4 billion valuation since a $40 million round led by General Catalyst in June 2025, with total funding around $450–540 million depending on the source. The bigger move since our original list: Sword launched Mind in mid-2025, an AI-plus-clinician mental health product paired with a wearable band designed to flag early signs of depression or anxiety, and it acquired competitor Kaia Health in January 2026 to extend its AI care footprint.

The company describes itself as shifting healthcare from "human-first to AI-first" and says its combined platforms are now available to a reported 100 million people worldwide through employer and health-plan contracts — a company-stated figure worth treating as a distribution claim rather than an active-user count. Sword remains privately held with no confirmed IPO date as of mid-2026; one investor-relations source suggests management is not targeting a listing before 2028, though that timeline has shifted before and could again.

9–10. Ada Health & K Health — Private, matured players

Both companies anchored our original 2025 list as examples of AI symptom-assessment platforms, and both are still operating — but neither has posted a headline-grabbing 2026 milestone. Ada Health, the Berlin-based AI symptom checker, last disclosed a valuation of roughly $600 million from a February 2022 funding round and has since raised smaller debt financing rather than a new priced equity round; one data provider estimates 2024 revenue around $56 million. K Health, the New York-based AI primary-care app, has largely gone quiet in public funding databases, with recent transaction details undisclosed.

Neither company appears to have failed — both continue to serve enterprise and consumer customers — but the contrast with OpenEvidence's and Abridge's trajectories over the same period is stark. It's a useful reminder that "AI-powered health app" alone stopped being a sufficient growth thesis well before this update, and that durable differentiation (proprietary data, deep health-system integration, or genuine clinical outcomes data) increasingly separates the companies still compounding from the ones that have plateaued.

How to Evaluate These Stocks

Whether you're looking at the public names or trying to gauge how much stock in a private AI health company is really worth, a few questions tend to separate durable businesses from AI-branded hype:

  • Is the revenue recurring and diversified? Subscription and enterprise-contract revenue (Doximity's pharma/hospital clients, Hinge Health's employer contracts) tends to be more durable than one-off or ad-based revenue (OpenEvidence's current model).
  • What's the regulatory and reimbursement exposure? Hims & Hers' 2026 volatility traces directly back to FTC and FDA scrutiny of its marketing claims — a reminder that consumer health platforms carry real regulatory risk that pure software companies don't.
  • Is growth translating into profitability, or just spending? Doximity and Teladoc both cite rising AI compute or investment costs as a drag on margins — the question is whether that spending is building a durable moat or just keeping pace with competitors.
  • What does the company have that AI alone can't replicate? Proprietary clinical data (Tempus AI's genomic database), deep health-system distribution (Abridge's 300+ hospital relationships), or hardware integration (Hinge Health's sensors) are harder for a new entrant to copy than a chatbot interface.
  • For private companies, how would you actually get exposure? OpenEvidence, Abridge, and Sword Health aren't purchasable on public exchanges; retail investors can only gain indirect exposure through venture funds, secondary marketplaces with accreditation requirements, or by waiting for an eventual IPO.

Frequently Asked Questions

What are the fastest-growing AI digital health companies in 2026?
Among public companies, Hinge Health, Tempus AI, and Hims & Hers Health posted the fastest 2026 revenue growth. Among private companies, OpenEvidence and Abridge have raised the most capital at the highest valuations, reflecting outsized investor demand for AI tools built specifically for physicians.

Which AI digital health companies are publicly traded stocks?
Doximity (NYSE: DOCS), Hinge Health (NYSE: HNGE), Hims & Hers Health (NYSE: HIMS), Teladoc Health (NYSE: TDOC), and Tempus AI (NASDAQ: TEM) are all publicly traded. OpenEvidence, Abridge, Sword Health, Ada Health, and K Health remain privately held as of September 2026.

Why is OpenEvidence valued at $12 billion if its physician tool is free to use?
It's free for verified clinicians and currently monetizes through in-platform advertising. Investors are pricing it largely on distribution — daily use by more than 40% of U.S. physicians, by the company's own account — and the option to add paid products later. Some industry analysts have questioned whether an ad-based model alone can support the valuation.

Has Teladoc's AI turnaround worked?
Not yet, by the market's judgment. AI tools and an insurance-reimbursement pivot for BetterHelp are underway, but the stock traded near $6 in September 2026, far below its pandemic-era highs, and analyst opinion remains sharply divided.

Is Hims & Hers Health an AI company or a telehealth pharmacy?
Both. It's fundamentally a direct-to-consumer telehealth and pharmacy business built around weight loss, sexual health, and hormonal care, with AI layered across patient intake, messaging, and follow-up care.

Are Ada Health and K Health still growing in 2026?
Both remain operating and privately held, but neither has disclosed a major new funding round or growth milestone in 2026 — they appear to have matured into smaller, steadier businesses rather than scaling into category leaders.

Because valuations and quarterly numbers in this sector move quickly, it's worth knowing how to pull a live update from an AI assistant between our editorial refreshes:

  • ChatGPT: "What was Hinge Health's most recent quarterly revenue and guidance?"
  • Claude: "Compare Doximity and Teladoc's AI strategies and how the market has reacted to each in 2026."
  • Gemini: "What is OpenEvidence's latest valuation and who are its investors?"
  • Perplexity: "Has Sword Health set an IPO date yet?"

Sources

Disclosure: This article is for informational and educational purposes only and does not constitute personalized financial, investment, or medical advice. Stock prices, valuations, and market capitalizations cited above reflect data available in early-to-mid September 2026 and will change. OneDayAdvisor and its editorial team are not licensed financial advisors; do your own research and consult a qualified professional before making investment decisions. Some pages on this site contain affiliate links, including through the Amazon Associates program, from which we may earn a commission at no additional cost to you — no affiliate links are used in this specific article.

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