Certara (NASDAQ:CERT) Announces Earnings Results, Misses Expectations By $0.02 EPS

Certara (NASDAQ:CERT) released its earnings results on Monday. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.02), Briefing.com reports. Certara had a negative net margin of 3.60% and a positive return on equity of 3.52%. The company had revenue of $106.92 million during the quarter, compared to analysts’ expectations of $106.13 million. Certara’s revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.14 earnings per share. Certara updated its FY 2026 guidance to 0.350-0.410 EPS.

Here are the key takeaways from Certara’s conference call:

• AI-integrated platform and leadership — management is building a next‑generation AI platform, appointed a Chief AI Officer (Dr. Chris Bouton), and announced a strategic collaboration with NVIDIA to accelerate computationally intensive simulations and new monetization models.
• Software momentum — Q1 software revenue was $49.7M (+7% YoY), software bookings were $48.7M (+20%), and software net retention was 106, with broad strength across customer tiers driving improved visibility into second‑half growth.
• Services and execution pressure — services revenue fell 4% to $57.2M and services bookings declined 14%, with management citing go‑to‑market and execution issues; operating expenses rose and GAAP net loss was $8.8M, weighing on adjusted EPS versus prior year.
• Portfolio actions and guidance update — Certara closed the divestiture of regulatory/medical writing (historically ~ $50M revenue / ~$17M adjusted EBITDA), updated 2026 revenue guidance to $395–$405M, expects ~50/50 software vs services mix going forward, and continues share repurchases (~$82.6M repurchased to date).

Certara Stock Down 4.2%

Shares of NASDAQ:CERT traded down $0.22 during midday trading on Wednesday, hitting $4.88. 1,637,073 shares of the company’s stock traded hands, compared to its average volume of 3,317,834. The firm’s fifty day moving average price is $6.17 and its two-hundred day moving average price is $7.96. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.05 and a current ratio of 1.88. Certara has a twelve month low of $4.89 and a twelve month high of $13.88. The company has a market cap of $747.44 million, a PE ratio of -48.74 and a beta of 1.53.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. KeyCorp lowered their price objective on shares of Certara from $10.00 to $8.00 and set an “overweight” rating for the company in a research note on Monday, April 13th. Leerink Partners reaffirmed an “outperform” rating and issued a $10.00 target price on shares of Certara in a research report on Thursday, February 26th. Stephens reduced their target price on Certara from $10.00 to $9.00 and set an “overweight” rating on the stock in a report on Tuesday. Barclays lowered their price target on Certara from $8.00 to $6.50 and set an “equal weight” rating for the company in a research report on Tuesday. Finally, BMO Capital Markets cut their price objective on Certara from $7.00 to $6.00 and set a “market perform” rating on the stock in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Certara currently has a consensus rating of “Hold” and an average price target of $8.85.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CERT. Osaic Holdings Inc. boosted its stake in shares of Certara by 50.7% during the 2nd quarter. Osaic Holdings Inc. now owns 3,491 shares of the company’s stock valued at $41,000 after buying an additional 1,175 shares during the period. Corient Private Wealth LLC grew its position in Certara by 11.7% in the 2nd quarter. Corient Private Wealth LLC now owns 12,362 shares of the company’s stock worth $144,000 after purchasing an additional 1,295 shares in the last quarter. Treasurer of the State of North Carolina increased its holdings in Certara by 2.9% during the second quarter. Treasurer of the State of North Carolina now owns 56,628 shares of the company’s stock worth $663,000 after buying an additional 1,597 shares during the last quarter. Nicolet Advisory Services LLC raised its position in Certara by 7.4% in the third quarter. Nicolet Advisory Services LLC now owns 30,608 shares of the company’s stock worth $396,000 after acquiring an additional 2,100 shares during the period. Finally, Amundi boosted its stake in Certara by 6.7% in the third quarter. Amundi now owns 45,708 shares of the company’s stock valued at $615,000 after acquiring an additional 2,859 shares during the last quarter. 73.96% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Certara

Here are the key news stories impacting Certara this week:

• Positive Sentiment: Certara said its AI investments are expected to support long-term growth, and the company also raised visibility into future performance after detailing its Q1 results and strategic priorities. Certara Inc (CERT) Q1 2026 Earnings Call Highlights: Navigating Modest Growth and Strategic …
• Positive Sentiment: Certara expects 2026 revenue of $395 million to $405 million after its medical writing divestiture, which gives investors a new baseline for the business and may reduce some uncertainty around the company’s future revenue mix. Certara expects $395M-$405M 2026 revenue following medical writing divestiture
• Neutral Sentiment: Several Wall Street firms adjusted their price targets after the earnings report, including Morgan Stanley to $10, Stephens to $9, Craig Hallum to $8, Barclays to $6.50, and Baird to $6, reflecting a more cautious but still generally constructive view on the stock’s long-term potential. Certara (NASDAQ:CERT) Price Target Lowered to $10.00 at Morgan Stanley
• Neutral Sentiment: An investor law firm also announced an investigation into potential claims on behalf of Certara shareholders, adding legal overhang but no immediate business change. Certara, Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses
• Negative Sentiment: Certara missed analyst EPS expectations in Q1 and its weaker annual guidance sparked the selloff, with coverage noting the stock hit a new 52-week low after earnings. Certara Shares Slide on Outlook Cut, 1Q Loss

Certara Company Profile

Certara is a biosimulation software and services company that partners with pharmaceutical, biotechnology and medical device developers to accelerate drug discovery, development and regulatory approval. The company’s platform integrates quantitative pharmacology, real-world evidence, artificial intelligence and machine learning to model and simulate drug behavior across a range of therapeutic areas and patient populations. By applying these mechanistic and data-driven approaches, Certara helps its clients predict clinical outcomes, optimize dosing strategies and streamline decision-making throughout the product lifecycle.

The company’s offerings are divided into software tools and consulting services.