Certara (NASDAQ:CERT) Announces Quarterly Earnings Results

Key Points

• Certara reported adjusted EPS of $0.09, in line with consensus, and revenue of $94.9 million, above estimates. Revenue was down 9.3% year over year in the earnings summary, while the conference-call recap cited 4% growth in revenue from continuing operations.
• Software revenue grew 11% and bookings rose 15%, but services revenue declined 2%, reflecting uneven performance across the business.
• Certara forecast FY 2026 adjusted EPS of $0.31–$0.34 and narrowed its revenue-growth outlook to 2%–3%; adjusted EBITDA rose 6% to $30.2 million.

Certara (NASDAQ:CERT - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.09 earnings per share for the quarter, meeting analysts' consensus estimates of $0.09, FiscalAI reports. Certara had a negative net margin of 16.75% and a positive return on equity of 3.86%. The company had revenue of $94.90 million during the quarter, compared to the consensus estimate of $92.01 million. During the same period in the prior year, the company earned $0.14 EPS. Certara's revenue was down 9.3% on a year-over-year basis. 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 Stock Down 1.1%

Shares of CERT traded down $0.13 during mid-day trading on Friday, reaching $12.05. The company's stock had a trading volume of 4,871,054 shares, compared to its average volume of 2,550,419. The company has a market cap of $1.84 billion, a price-to-earnings ratio of -28.69 and a beta of 1.30. The business has a fifty day moving average of $9.33 and a 200 day moving average of $7.35. The company has a quick ratio of 2.55, a current ratio of 2.55 and a debt-to-equity ratio of 0.30. Certara has a 1 year low of $4.45 and a 1 year high of $12.61.

Certara News Roundup

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

Wall Street Analyst Weigh In

A number of analysts recently commented on CERT shares. Jefferies Financial Group reiterated a "hold" rating and issued a $12.00 target price on shares of Certara in a report on Friday. UBS Group restated a "neutral" rating and set a $13.00 target price on shares of Certara in a report on Friday. KeyCorp raised 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. TD Cowen lifted their price target on shares of Certara from $9.00 to $11.00 and gave the stock a "buy" rating in a research report on Tuesday, October 13th. Finally, Weiss Ratings cut Certara from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $9.92.

Certara Company Profile

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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