Certara (NASDAQ:CERT – Get Free Report) released its earnings results on Thursday. The company reported $0.09 earnings per share for the quarter, meeting the consensus estimate of $0.09, FiscalAI reports. The business had revenue of $94.90 million for the quarter, compared to the consensus estimate of $92.01 million. Certara had a positive return on equity of 3.86% and a negative net margin of 16.75%. The business’s quarterly revenue was down 9.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.14 earnings per share. Certara updated its FY 2026 guidance to 0.310-0.340 EPS.
Here are the key takeaways from Certara’s conference call:
- Q3 revenue from continuing operations rose 4% year over year to $94.9 million. Software revenue grew 11%—its first double-digit growth quarter in two years—and software bookings increased 15%, with growth across core products.
- Services revenue fell 2% year over year, while trailing 12-month services bookings were down 2%. Management cited sequential revenue growth and a 1.15 book-to-bill ratio, but said its commercial and operating changes will take time to translate into results.
- Certara narrowed its 2026 revenue growth outlook to 2%–3%, expecting software growth to exceed that range but services growth to be at or below its low end. The company updated its adjusted EPS outlook to $0.31–$0.34.
- Adjusted EBITDA increased 6% to $30.2 million, with a 31.8% margin, up from 28.1% in Q2. Management attributed the improvement to favorable software mix, cost savings and expense discipline.
- Management is investing in AI-enabled products, Phoenix Cloud conversions and commercial expansion in APAC, and expects new AI capabilities and regional efforts to contribute to growth in 2027. Phoenix Cloud conversions have reached nearly 10% of accounts, though management acknowledged they create some near-term revenue headwind.
Certara Price Performance
Shares of Certara stock traded down $0.13 on Friday, hitting $12.05. 4,871,054 shares of the company were exchanged, compared to its average volume of 2,550,419. The stock has a market capitalization of $1.84 billion, a price-to-earnings ratio of -28.69 and a beta of 1.30. The company has a 50-day moving average price of $9.33 and a 200 day moving average price of $7.35. Certara has a 1-year low of $4.45 and a 1-year high of $12.61. The company has a quick ratio of 2.55, a current ratio of 2.55 and a debt-to-equity ratio of 0.30.
More Certara News
Here are the key news stories impacting Certara this week:
- Positive Sentiment: Certara raised its 2026 revenue outlook to $427.2 million–$431.4 million, well above the cited analyst consensus of $380.9 million. Its EPS guidance of $0.31–$0.34 also met or exceeded the $0.31 consensus midpoint, giving investors a stronger forward outlook. Article: Certara Q3 2026 Earnings Call Highlights
- Positive Sentiment: Third-quarter revenue of $94.9 million topped the $92.0 million consensus, while EPS was reported at $0.09, meeting some estimates and exceeding others. Reports also highlighted double-digit software revenue growth—the first such pace in two years—which helped support a positive share-price reaction after the update. Article: Certara Q3 2026 earnings
- Neutral Sentiment: Barclays raised its price target from $9 to $12 but kept an Equal Weight rating, signaling improved valuation expectations without a bullish call. Article: Barclays price target update
- Negative Sentiment: UBS downgraded CERT from Buy to Neutral, though its $13 price target remains above the price cited in the report. The downgrade may restrain enthusiasm after the stock’s recent rally. Article: UBS downgrades Certara
Analyst Upgrades and Downgrades
Several brokerages recently commented on CERT. Jefferies Financial Group reiterated a “hold” rating and set a $12.00 price target on shares of Certara in a research report on Friday. Barclays raised their price objective on Certara from $9.00 to $12.00 and gave the company an “equal weight” rating in a report on Friday. UBS Group reaffirmed a “neutral” rating and set a $13.00 target price on shares of Certara in a research note on Friday. KeyCorp upped their target price on shares of Certara from $9.00 to $12.00 and gave the stock an “overweight” rating in a report on Friday, October 16th. Finally, Weiss Ratings lowered shares of Certara from a “sell (d)” rating to a “sell (d-)” rating in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $9.92.
About Certara
Certara is a global provider of software and services that support drug development and regulatory approval. The company helps biopharmaceutical and pharmaceutical organizations use quantitative methods, modeling and simulation, and regulatory science to improve decisions throughout the development process.
Its software portfolio includes platforms for pharmacometric modeling and simulation, clinical trial design and analysis, pharmacology and safety assessment, data visualization, and regulatory submission management.
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