Simulations Plus forecasts 0-4% revenue growth for fiscal 2026

RESEARCH TRIANGLE PARK, N.C. - Simulations Plus, Inc. (NASDAQ:SLP), currently valued at $313 million and showing signs of being undervalued according to InvestingPro analysis, announced preliminary fiscal 2026 revenue guidance of $79-82 million, representing flat to 4% growth compared to preliminary fiscal 2025 revenue of $79.1 million, according to a press release statement.

The biosimulation and cheminformatics provider also projected adjusted diluted earnings per share of $1.03-$1.10 for fiscal 2026 and an adjusted EBITDA margin between 26-30%.

For the fiscal year ending August 31, 2025, the company reported preliminary revenue of $79.1 million, representing 13% growth over the previous year, with software products accounting for 58% of total revenue. The company expects to report its audited fiscal 2025 results on December 1.

"We expect to successfully meet our revised fiscal 2025 guidance despite operating in a challenging market environment shaped by ongoing uncertainty around funding, drug pricing, and tariffs affecting both our pharmaceutical and biotech clients," said Shawn O’Connor, Chief Executive Officer of Simulations Plus.

The company also announced the recent launch of GastroPlus X.2, which introduces AI-powered tools on the S+ Cloud platform. This release marks the beginning of a broader strategy to integrate cloud and AI capabilities across the company’s software portfolio.

O’Connor will participate in several upcoming investor events, including the KeyBanc Non-Deal Roadshow on October 28, the Stephens Annual Investment Conference on November 19, the BTIG Digital Health Forum on November 24, and the TD Cowen Diagnosing Tomorrow Conference on December 11.

The preliminary results and guidance are unaudited and subject to adjustment in the final financial statements to be filed with the company’s Annual Report on Form 10-K. Despite the stock’s significant 56% decline over the past six months, analysts maintain a positive outlook, with comprehensive analysis available in the InvestingPro Research Report, which provides detailed insights into the company’s financials, valuation, and growth prospects.

In other recent news, Simulations Plus has reported notable results in its artificial intelligence-driven drug design collaboration with the Institute of Medical Biology of the Polish Academy of Sciences. The company announced a 70% success rate in developing novel compounds targeting inflammation and immune responses, with 70% of the 27 compounds showing significant inhibition of RORγT activity in vitro. This collaboration highlights the potential of Simulations Plus’s ADMET Predictor software in drug design. Additionally, TD Cowen has initiated coverage of Simulations Plus with a Hold rating and a price target of $16.00. The research firm pointed out the company’s competitive biosimulation platform as a positive aspect, noting its ability to provide cost and time savings for biopharmaceutical customers. These developments reflect ongoing advancements and evaluations of Simulations Plus’s capabilities and market position.

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