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Certara (CERT) Q3 2026 Earnings Report

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CERT Q3 2026 EPS Results

Actual EPS
$0.09
Consensus EPS
$0.09
Beat/Miss
Beat by +$0.00
One Year Ago EPS
$0.14

CERT Q3 2026 Revenue Results

Actual Revenue
$94.90M
Expected Revenue
$92.01M
Beat/Miss
Beat by +$2.89M
YoY Revenue Growth
-9.29%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/05/2026
Time
Before Open
Conference Call
Thursday, November 5, 2026
CERT Upcoming Earnings

Certara's next earnings date is estimated for March 4, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

CERT Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 05, 2026|% Change Since:7.30%|
Earnings Call Sentiment|Positive

The call was generally positive. Software growth, bookings, adjusted EBITDA expansion, cost savings, AI initiatives, cloud adoption, regulatory contracts, and commercial restructuring represented significant positives. These were partly offset by declining services revenue and bookings, the narrowed 2026 revenue growth outlook, a continuing operations net loss, restructuring costs, tax expense, and the revenue headwind from cloud conversion. Highlights significantly outweighed the lowlights.

Company Guidance

Certara narrowed its 2026 full-year revenue growth range to 2%-3%, expects software revenue growth to be above this range and services revenue to be at or below the low end of that range; its previously communicated full-year Adjusted EBITDA margin outlook was 29%-31%, which remains an appropriate margin range for the fourth quarter, while 2026 adjusted EPS is expected to be $0.31-$0.34, fully diluted weighted average shares are expected to be in the range of 155 million-157 million, and the effective tax rate is modeled in the range of 25%-30%. The company said APAC initiatives are really going to be a 2027 growth impact, expects new AI capabilities to further contribute to growth and positioning in 2027, and will hold off on providing 2027 guidance until later in the year.

  • Revenue and Adjusted EBITDA GrowthThird-quarter revenue was $94.9 million, up 4% year-over-year on a continuing operations basis. Adjusted EBITDA was $30.2 million, up 6% year-over-year, with a 31.8% margin.
  • Strong Software Growth and BookingsSoftware revenue grew 11% year-over-year to $48.8 million, marking the first double-digit organic software growth quarter in two years. Software bookings were $46.9 million, up 15% year-over-year, and software now represents more than half of revenue.
  • Broad Software Portfolio MomentumManagement reported growth across all core software products. Trailing 12-month software bookings were $202.4 million, up 8% year-over-year, supported by strong retention and continued growth across the major portfolios.
  • Phoenix Cloud Conversion ProgressNearly 10% of all Phoenix accounts have moved to the cloud, slightly ahead of the company's expectations for the first year. Management expects additional cloud conversion and adoption of new AI offerings to fuel future growth.
  • Pinnacle 21 and Simcyp Customer EngagementCertara expanded a multi-million-dollar Pinnacle 21 relationship with a strategic partner, including advanced-tier modules such as MDR, Data Exchange, and CRF Creator. Simcyp continued to see high customer and scientific-community engagement and historically strong renewal rates.
  • New Chief Product Officer AppointmentCertara appointed Grant Peterson as Chief Product Officer. His mandate is to focus portfolio investments on accelerating growth in existing and new products, incorporating customer input and the broader technology ecosystem. He previously served as CPO at Conga and CTO at DocuSign.
  • AI Platform DevelopmentCertara is embedding AI across its offerings and operations and developing an integrated AI platform spanning the drug development cycle. The strategy includes agentic components, an MCP-enabled data integration platform providing access to Certara software and proprietary data, and continued expansion of AI-enabled scientific content and applications. Management expects these capabilities to contribute further to growth and positioning in 2027.
  • AI Operational and Product BenefitsManagement reported internal AI-related process acceleration, streamlined service work steps, faster development timelines, increased functionality, and higher product value. Certara is also working with clients on broader AI initiatives expected to lift the portfolio over the next 12 to 24 months.
  • Services Sequential Improvement and PipelineServices revenue was $46.1 million, down 2% year-over-year but up 3.5% sequentially in the third quarter. Services bookings were $45.6 million, and trailing 12-month services book-to-bill was 1.15. Management said the specialist-led services model, customer outreach, and commercial changes are beginning to produce incremental improvement.
  • Scientific Expertise and Customer Project WinsCertara has more than 400 scientists with advanced degrees. During the quarter, its teams supported model-based meta-analysis for obesity treatment trials, predicted a first-in-human starting dose for an in vivo CAR T candidate using a QSP CAR T model, connected Chinese and U.S. data to support a potential phase III FDA submission, and used modeling and simulation to support rare pediatric cancer programs.
  • Integrated Software and Services Partnership MilestoneA biotech partner developing a novel oncology agent received approval under priority review for a cancer with historically few treatment options. The four-year partnership involved more than two dozen Certara software and service solutions and supported the program from pre-IND through a successful NDA.
  • Commercial Expansion and Targeted OutreachCertara is reallocating commercial resources toward biotech, mid-sized pharma, CROs, and global markets while maintaining relationships with tier 1 clients. The company is using targeted outreach based on therapeutic areas and modalities, engaging emerging biotech earlier, and held a Boston Biotech Forum with 90 attendees from more than 70 companies.
  • APAC Expansion InitiativesCertara began expanding in Asia through roadshows in China, Japan, and Korea, including engagement with a Korean government delegation. Management said the initiatives have already started and are expected to have a 2027 growth impact.
  • Operational Efficiency and Cost SavingsManagement said run-rate cost savings had exceeded $12 million to $13 million as of the prior quarter and continued to grow. Third-quarter cost of revenues declined 6% to $31.4 million despite 4% revenue growth, while adjusted EBITDA margin improved to 31.8% from 28.1% in the second quarter.
  • Improved Liquidity and Capital FlexibilityCash and cash equivalents increased to $214.9 million from $184.1 million at the end of the second quarter. The increase included $30.7 million of cash from continuing operations and approximately $9 million of divestiture proceeds. Certara had approximately $100 million available under its revolving credit facility.
  • Regulatory Contracts and MIDD TailwindsThe FDA competitively awarded Certara contracts for its DataFit program at CDER and CASA-CV clinical data validation programs at CBER, extending the FDA's relationship with Pinnacle 21. The FDA also engaged Simcyp under a three-year research contract for biosimulation of dermal products. Management cited the FDA's revised terminology around non-clinical tests, Operation TrialBlazer, ARPA-H's SURPASS program, and the effective ICH M15 guideline as developments supporting broader use of modeling and simulation.
  • NAMs and Regulatory EngagementCertara is working with global regulators, industry consortia, and customers to define credible evidence for new approach methodologies and is supporting early use cases. Management said clients are experimenting with different approaches in 2026 and that Certara is actively involved with regulators and customers across these initiatives.
  • Full-Year Adjusted EPS OutlookCertara updated its full-year 2026 adjusted EPS outlook to $0.31-$0.34. Fully diluted weighted average shares are expected to be 155 million-157 million, with an effective tax rate modeled at 25%-30%.

CERT Earnings History

CERT earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Mar 04, 20272026 (Q4)0.10-0.09――
Nov 05, 20262026 (Q3)0.090.090.14-35.71% (-0.05)
Aug 04, 20262026 (Q2)0.090.080.0714.29% (+0.01)
May 11, 20262026 (Q1)0.110.090.14-35.71% (-0.05)
Feb 26, 20262025 (Q4)0.110.090.15-40.00% (-0.06)
Nov 06, 20252025 (Q3)0.110.140.137.69% (+0.01)
Aug 06, 20252025 (Q2)0.100.070.070.00% (+0.00)
May 05, 20252025 (Q1)0.110.140.140.00% (+0.04)
Feb 26, 20252024 (Q4)0.120.150.0966.67% (+0.06)
Nov 06, 20242024 (Q3)0.110.130.1118.18% (+0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed