Why Simulations Plus Stock Was Soaring Today
Key Points
Its full-year fiscal 2025 featured a double-digit revenue increase.
As for the fourth quarter, its performance was mixed.
- 10 stocks we like better than Simulations Plus ›
Simulations Plus (NASDAQ: SLP) was a popular niche stock on the exchange on Tuesday. The healthcare tech specialist's equity was rising by over 16% in late-session trading, thanks to a fresh earnings report that many investors found quite encouraging.
A mixed final frame
For its fiscal fourth quarter of 2025, Simulations Plus brought in $17.5 million in revenue, representing a 6% year-over-year decrease. The decline was mostly due to a 9% slide in software revenue to $9 million. Services, which fell by 3%, comprised the remainder of the top line.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
As for profitability, net income not in accordance with generally accepted accounting practices (GAAP) decreased to $2 million ($0.10 per share) from fourth quarter 2024's $3.6 million.
On average, analysts tracking Simulations Plus stock were modeling revenue of just under $17.9 million and non-GAAP (adjusted) net profit of $0.10 per share.
The company's full-year performance looked a little better. For that time period, revenue increased by 13% over 2024 to $79 million. Adjusted net income also defied gravity, rising to $20.7 million ($1.03 per share) from $19.4 million.
In its earnings release, Simulations Plus quoted CEO Shawn O'Connor as saying that "The demand environment remains cautious, but we believe adoption of cloud deployment, interoperability, and artificial intelligence-driven workflows is accelerating across our customer base."
So, so-so
Simulations Plus reiterated its existing guidance for the entirety of the new fiscal year. The company believes revenue will hit $79 million to $82 million, with per-share, adjusted net profit landing at $1.03 to $1.10.
I feel Simulations Plus and other healthcare tech companies that advance pharmaceutical science have enormous potential. Drilling down into this earnings report, though, I'm not seeing much -- either in trailing performance or guidance -- that blows me away with this company. It feels to me that better investments exist in this space.
Should you invest $1,000 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 $588,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,102,885!*
Now, it’s worth noting Stock Advisor’s total average return is 1,012% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
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
