Why Simulations Plus Stock Inched Higher Today
Key Points
It notched beats on both revenue and profitability in its fiscal second quarter.
On a negative note, it cut its net income forecast for the full fiscal year.
- 10 stocks we like better than Simulations Plus ›
Medical tech company Simulations Plus (NASDAQ: SLP) ended up slightly in positive territory on Friday. That was largely due to solid quarterly results, although a bottom-line guidance cut dampened some investors' enthusiasm. Ultimately, the company's shares only rose 0.4% that day.
Good for what ails you
Simulations Plus' second quarter of 2026 was topped by a revenue line of $24.3 million, which was 8% higher year over year. Of that, software revenue rose by 9% to $14.6 million, while the company's take for services advanced by 8% to comprise the remainder.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Net income not under generally accepted accounting principles (GAAP) improved more dramatically, rising 13% to slightly over $7 million, or $0.35 per share.
This meant a double dose of beats for the healthcare tech company, as the consensus analyst estimate for revenue was under $21.7 million, and that for non-GAAP (adjusted) net profit was $0.31.
In its earnings release, Simulations Plus attributed the growth in software revenue to the popularity of its discovery and development solutions, though a dip in clinical operations software partially offset this. As for services revenue, it derived mostly from -- again -- development solutions.
Scissor time
While those numbers were satisfying, they were tempered by Simulations Plus' cut to full-fiscal-year adjusted net income guidance. Management now anticipates earning $0.75 to $0.85 per share, well down from the previous forecast of $1.03 to $1.10. The company chalked this up to a higher effective tax rate. Meanwhile, it left its revenue guidance unchanged at $79 million to $82 million.
If a tax bill is the only major concern for the company and its investors, it's doing extremely well. I'd focus on its solid performance and the clear momentum in both facets of its business. It's looking like a buy to me these days, particularly after that lukewarm market reaction to what was a very solid quarter.
Should you buy stock in Simulations Plus right now?
Before you buy stock in Simulations Plus, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Simulations Plus wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $550,348!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,127,467!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 10, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
