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Certara Q3 revenue rises 4%, beats estimates

By Reuters News


Overview

  • Drug development software firm's Q3 revenue rose 4%, beating analyst expectations

  • Adjusted EPS for Q3 met analyst expectations

  • Company narrowed 2026 revenue growth outlook to 2%-3%


Outlook

  • Certara narrows 2026 full-year revenue growth outlook to 2% to 3%

  • Company expects 2026 software revenue growth above total revenue growth range

  • Certara updates 2026 adjusted diluted EPS outlook to $0.31 to $0.34


Result Drivers

  • SOFTWARE GROWTH - Software revenue rose 11% organically, marking the first double-digit quarterly increase in two years, according to CEO Jon Resnick

  • SERVICES WEAKNESS - Services revenue declined 2% year-over-year as the company works to convert its pipeline into bookings and revenue

  • OPERATING ACTIONS - Company said margin improvement reflected initial benefits from operating actions implemented in the first half, per Interim CFO Faiz Mohammed


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$94.90 mln

$92.87 mln (11 Analysts)

Q3 Adjusted EPS

Meet

$0.09

$0.09 (10 Analysts)

Q3 Adjusted Net Income

$13.50 mln

Q3 Net Income

$5.59 mln

Q3 Adjusted EBITDA

$30.20 mln

Q3 Pretax Loss

$1.18 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Certara, Inc. is $9.00, about 18.8% below its November 4 closing price of $11.09

  • The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Nov 4 - HubSpot Q3 revenue beats estimates driven by subscription growth

  • Nov 4 - Figma's Q3 revenue jumps 43% and beats estimates; raises FY revenue outlook

  • Nov 3 - Varonis Q3 revenue rises 17%, beats analyst expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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