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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 potential of SLP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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