In spite of efforts to increase gender diversity across many science fields, women continue to encounter beliefs that they lack ability and talent. Undergraduate education is a critical time when peer influence may alter choice of majors and careers for women interested in science. Even in life science courses, in which women outnumber men, gender biases that emerge in peer-to-peer interactions during coursework may detract from women's interest and progress. This is the first study of which we are aware to document that women are outperforming men in both physical and life science undergraduate courses at the same institution, while simultaneously continuing to be perceived as less-able students. This is problematic because undergraduate women may not be able to escape gender-ability stereotypes even when they are outperforming men, which has important implications for 1) the recognition of women's achievements among their peers in undergraduate education and 2) retention of women in STEM disciplines and careers.