Why Simulations Plus Stock Inched Higher Today

By Eric Volkman – Apr 10, 2026 at 5:33PM ESTKey PointsIt 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.Medical tech company Simulations Plus (SLP +0.39%) 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. 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. ExpandNASDAQ: SLPSimulations PlusToday's Change(0.39%) $0.05Current Price$13.04Key Data PointsMarket Cap$262MDay's Range$12.62 - $15.5552wk Range$11.09 - $36.45Volume1.4MAvg Vol313KGross Margin59.10% 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.Read NextApr 10, 2026 •By Motley Fool TranscribingSimulations Plus (SLP) Q2 2026 Earnings TranscriptApr 10, 2026 •By Daniel SparksWhy Broadcom Stock Is a Better Long-Term AI Stock to Buy Than NvidiaApr 10, 2026 •By Eric VolkmanWhy Wix Stock Plummeted by Nearly 23% This WeekApr 10, 2026 •By Parkev Tatevosian, CFAYielding 3.9%, Here's an Undervalued Dividend Stock You Can Buy NowApr 10, 2026 •By Parkev Tatevosian, CFAMassive News for Meta Stock InvestorsApr 10, 2026 •By Parkev Tatevosian, CFAWhy Is Palantir Stock Falling, and Should You Buy the Dip?About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedSimulations PlusNASDAQ: SLP$13.04(+0.39%)+$0.05*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.