Simulations Plus shares jump 5% on upbeat FY26 guidance, despite revenue miss

Published 01/12/2025, 22:26
 Simulations Plus shares jump 5% on upbeat FY26 guidance, despite revenue miss

RESEARCH TRIANGLE PARK, N.C. - Simulations Plus, Inc. (NASDAQ:SLP) shares jumped 5.2% after the biosimulation company reported fourth quarter earnings that met analyst expectations and reaffirmed its fiscal 2026 guidance.

The company reported fourth quarter adjusted earnings per share of $0.10, in line with analyst estimates, while revenue came in at $17.5 million, slightly below the consensus estimate of $17.86 million.

Fourth quarter revenue decreased 6% compared to the same period last year, with software revenue down 9% to $9.0 million and services revenue down 3% to $8.4 million.

Despite the quarterly revenue decline, investors responded positively to the company’s reaffirmed fiscal 2026 guidance, which projects revenue between $79 million and $82 million and adjusted diluted EPS between $1.03 and $1.10, both in line with analyst expectations.

"By successfully meeting our revised fiscal 2025 guidance, we have demonstrated Simulations Plus ’ resilience and agility in navigating evolving market dynamics," said Shawn O’Connor, CEO of Simulations Plus. "We delivered 13% revenue growth and achieved 8% growth in both adjusted EBITDA and adjusted EPS."

For the full fiscal year 2025, Simulations Plus reported total revenue of $79.2 million, a 13% increase YoY, with software revenue up 12% to $45.8 million and services revenue up 15% to $33.4 million.

The company plans to hold a Virtual Investor Day on January 21, 2026, where it will present its new product vision and AI solutions, including cloud-scale performance for intensive modeling and AI copilots designed to simplify complex workflows.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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