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Here’s Simulations Plus Inc (SLP)’s Vision for AI in Drug Development

Simulations Plus Inc (NASDAQ:SLP) is among the best medical AI stocks to buy now. On March 26, Simulations Plus announced collaboration programs for AI-enabled modeling in drug development. Simulations Plus uses AI to help scientists increase efficiency in their modeling workflow.

The company said three large pharmaceutical companies were participating in its collaboration programs. Back in January, during the Simulations Plus investor day event, CEO Shawn O’Connor noted that for AI to fulfill its potential in drug development, it needs to be delivered responsibly, be grounded in validated science, and integrated into real workflows.

Simulations Plus says that companies participating in its collaboration programs will integrate its AI agents directly into their modeling workflows. The company favors a deployment approach that infuses AI into the complete system rather than offering it as a standalone capability.

For its fiscal Q2 2026 ended February 28, Simulations Plus delivered financial results that surpassed expectations. The results, which were released on April 10, showed EPS of $0.35, which improved from $0.31 in the prior year and beat the consensus estimate of $0.31.

Revenue rose 8% YoY to $24.3 million and came above the consensus forecast of $21.66 million. The company reported sales growth in both its software and services segments. The software business accounts for 60% of total revenue, with the rest coming from the services business.

For the fiscal 2026 full-year, Simulations Plus anticipates revenue in the band of $79 million to $82 million, suggesting a potential growth of up to 4%. It expects adjusted EPS in the range of $0.75 – $0.85.

Simulations Plus Inc (NASDAQ:SLP) provides modeling and simulation software used by pharmaceutical and biotechnology companies. Simulations Plus also offers consulting services. Its solutions are aimed at helping scientists to speed up drug development and reduce costs.

While we acknowledge the risk and potential of SLP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SLP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: David Abrams’ Hedge Fund Is Betting On These 8 Stocks and 10 Best Energy Storage Stocks to Buy According to Hedge Funds.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
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