| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 33 | — | 17.3x | Bottom tier | |
Growth | 18 | 6.9% | 7.1% | Bottom tier | |
Quality | 44 | -0.4% | 4.5% | Around median | |
Safety | 67 | 1.5x | 2.6x | Top tier | |
Capital Return | 62 | 0.00% | 0.06% | Around median | |
Momentum | 73 | -25.3% | -1.6% | Top tier | |
Sentiment | 75 | 6 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Certara operates at the intersection of scientific software and specialized drug development services, serving more than 2,600 customers in more than 70 countries, with approximately 160,000 daily users of its software. The company generates revenue from platforms such as Simcyp, Phoenix, Pinnacle 21, CertaraIQ, D360, and CoAuthor, alongside clinical pharmacology, pharmacometrics, evidence design, and model-informed drug development services. In fiscal Q2 2026, software represented 53% of the business, compared with 40% two years ago, reflecting a mix shift toward more scalable software products.
Fiscal Q2 2026 revenue was approximately $93.3 million, up 1% year over year. Software generated $48.8 million, growing 4%, supported by Simcyp, Phoenix, and Pinnacle 21, while services revenue declined 3% to $44.5 million; total bookings were $98.3 million, including $50.7 million from software and $47.6 million from services. Based on cost of revenue of $35.1 million, calculated gross profit was approximately $58.2 million, equivalent to a gross margin of about 62.4%.
EDGAR data for fiscal Q2 2026 recorded a net loss of $55.3 million and negative earnings per share of $0.36, while the earnings call showed a net loss from continuing operations of $6.1 million and a diluted loss of $0.04 per share, due to the different scopes of the two measurements. Adjusted net income was $12.5 million and adjusted earnings per share were $0.08, while adjusted earnings before interest, taxes, depreciation, and amortization declined to $26.2 million from $27 million, with a margin of 28.1%. By comparison, the company generated fiscal 2025 revenue of $418.8 million and a net loss of $1.6 million.
The analyst consensus is Buy, with an average price target of $7.75 within a narrow range of $7.50 to $8.00. The average target is approximately 44% below the top of the 52-week range of $13.88, reflecting a substantial revaluation from the peak, alongside revenue growth of only 1%, weakness in services, and losses that make the price-to-earnings multiple unavailable. In contrast, analyst targets assume that accelerating software bookings, the growing sales pipeline, and cost savings will translate into tangible financial improvement.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Certara generates revenue from the sale of scientific and regulatory software such as Simcyp, Phoenix, Pinnacle 21, CertaraIQ, D360, and CoAuthor, and from modeling, pharmacometrics, and clinical pharmacology services. In fiscal Q2 2026, software revenue was $48.8 million, or approximately 52% of total revenue of $93.3 million, while services generated $44.5 million. Management stated that software currently represents 53% of the business, compared with 40% two years ago, highlighting the mix shift toward the software business.
EDGAR data for fiscal Q2 2026 show a net loss of $55.3 million and negative earnings per share of $0.36. The August 4, 2026 call, however, reported a net loss from continuing operations of $6.1 million and a diluted loss of $0.04 per share, after classifying the sold regulatory and medical writing business as discontinued operations and making final related adjustments. On an adjusted basis, net income was $12.5 million and earnings per share were $0.08, so the total, continuing, and adjusted measures should be distinguished.
Automated analysis for informational purposes only — not investment advice.
Certara expects comparable continuing-operations revenue of between $367 million and $382 million in fiscal 2026, equivalent to growth of between 0% and 4%. Management expects software revenue to be at or above the high end of this range, while services may be at or below the low end. It also expects an adjusted earnings before interest, taxes, depreciation, and amortization margin of between 29% and 31%, and adjusted diluted earnings per share from continuing operations of between $0.31 and $0.36.
Up to 85% of Certara's new code is now AI-assisted, with a 65% year-over-year increase in development output per software engineer. CoAuthor includes approximately 600 AI agents and achieved a 40% productivity increase in preparing quality-control documents and accuracy exceeding 90% in summarizing complex databases. In fiscal Q2 2026, the company said agentic workflows in scientific services accelerated certain delivery steps by up to 80%, but as of August 4, 2026, it had not specified the timing of the financial impact of its partnership with NVIDIA.
Overall revenue growth was only 1% in fiscal Q2 2026, but software bookings increased 9% to $50.7 million. Trailing twelve-month software bookings also grew 8% to $196.4 million, and the sales pipeline increased 27% year over year at quarter-end. In contrast, services bookings declined 6% to $47.6 million, so actual improvement depends on the ability of the new scientific selling model to convert the sales pipeline into bookings and revenue.
Certara ended fiscal Q2 2026 with cash and cash equivalents of $184.1 million and outstanding term loans of $294 million. It also had $100 million available under its revolving credit facility as of June 30, 2026. During the quarter, it repurchased $17.4 million of shares to complete a $100 million program, after which the board of directors approved a new $50 million program in fiscal Q3 2026 without specifying the timing or execution path.