Core Insights - Simulations Plus reported mixed results for Q4 fiscal 2025, but the outlook for fiscal 2026 led to a stock increase of 21.6% for the week [1] - The company experienced a 6% revenue decline in Q4 to $17.5 million, with a full fiscal year revenue growth of 13% [2] - CEO Shawn O'Connor noted a cautious demand environment but highlighted accelerating adoption of cloud deployment, interoperability, and AI-driven workflows [3] Financial Performance - For fiscal 2026, Simulations Plus expects revenue growth between 0% and 4%, projecting revenue in the range of $79 million to $82 million [4] - Adjusted EPS for fiscal 2026 is anticipated to be between $1.03 and $1.10, compared to $1.03 in fiscal 2025 [4] - The stock has dropped 44% from its 52-week high and is down about 77% from its all-time high, trading for less than 20 times forward earnings [5] Growth Prospects - While the valuation appears reasonable, the company's growth is slowing, and reliance on AI-powered solutions may take time to yield results [6] - Investors are optimistic about the company's new AI-centric product vision, but it remains to be seen if it can enhance revenue and profit in the long term [6]