Simulations Plus, Inc. (SLP)
NASDAQHealth CareSoftware - ApplicationSnapshot 2026-09-09
$18.420.00%
Close 2026-09-09 · 1-day change
NASDAQHealth CareSoftware - ApplicationSnapshot 2026-09-09
Intact: The reason to own it still holds.
Simulations Plus develops AI-driven drug discovery software. Revenue is guided to about $80 million in fiscal 2026. Adjusted EPS is expected near $0.80 per share. The recent $375 million acquisition deal boosts growth potential.
The company has lowered EPS guidance for fiscal 2026. It has missed earnings recently and remains loss-making. Litigation and CEO transition add uncertainty. Growth and profit targets may not be met.
The price is about 3% above our fair value near $18. Analysts expect roughly 6% revenue growth. Our view aligns with these moderate growth expectations.
Breaks if: Adjusted EPS falls below $0.75 in fiscal 2026
Maintain adjusted diluted earnings per share guidance in the range of $0.75 to $0.85 for fiscal 2026.
Stated as a priority in 3 of last 3 quarters. Adjusted EPS guidance was revised downward from $1.03-$1.10 to $0.75-$0.85 in 2026-Q2 due to tax rate changes and reaffirmed thereafter. Adjusted diluted EPS for first nine months 2026 was $0.78, consistent with the revised guidance. The trajectory shows delivery aligned with updated guidance.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround opportunity in the healthcare sector. The current thesis state is intact, supported by strong recent financial performance and ongoing merger activities.
The market appears to have priced in a low expectations gap, suggesting that current valuations are justified. There is a slight premium compared to peers, indicating that investors may be cautious but not overly pessimistic.
Management has reaffirmed revenue guidance, showing consistent growth. However, there are risks related to potential downward guidance and broader economic conditions that could impact performance.
The long-term thesis hinges on the successful completion of the merger with Altaris and the ability to maintain or improve earnings guidance. Additionally, sector performance and macroeconomic indicators like job growth will be crucial.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“We expect full-year adjusted EPS of $0.78.”
“The Company is adjusting its guidance range for adjusted diluted EPS from $1.03 - $1.10 to $0.75 - $0.85.”
“Previously provided fiscal year 2026 guidance: Adjusted diluted EPS $1.03 - $1.10.”
Breaks if: Operating cash flow falls below $6.4 million in 2026-Q2
Breaks if: Revenue falls below $79 million in fiscal 2026
Overall, SLP's fundamentals are strong but face risks that could impact future performance. Not investment advice.