Schrodinger (NASDAQ:SDGR) Issues Earnings Results

Schrodinger (NASDAQ:SDGR) issued its quarterly earnings results on Wednesday. The company reported $0.08 EPS for the quarter, beating the consensus estimate of ($0.41) by $0.49, FiscalAI reports. The company had revenue of $58.89 million during the quarter, compared to analysts’ expectations of $47.19 million. Schrodinger had a negative net margin of 40.61% and a negative return on equity of 30.85%. The firm’s revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the company posted ($0.65) EPS.

Here are the key takeaways from Schrodinger’s conference call:

• Software ACV rose 27% year over year to $29.6 million in Q2, supported by growth among large pharmaceutical, biotech, and materials-science customers. Management said improving biotech funding and customer expansion are contributing to momentum.
• Schrödinger launched its Bunsen agentic AI co-scientist in early access and signed a strategic agreement with Bristol Myers Squibb. Management expects Bunsen to increase platform usage, expand the user base, and accelerate internal and customer drug-discovery workflows.
• The company is accelerating its shift to hosted software, with hosted revenue reaching 47% of software revenue versus 31% a year ago, while targeting 75% hosted by the end of 2028. This transition temporarily pressures reported revenue and software gross margin because hosted contracts are recognized ratably.
• Schrödinger raised its 2026 drug-discovery revenue outlook to $65 million-$75 million from $55 million-$65 million after recognizing a $10 million Ajax collaboration milestone. The company also reported $419 million in cash and marketable securities and expects 2026 operating expenses to decline from 2025.
• The therapeutics portfolio continues to generate potential long-term value, with more than $750 million realized since 2020 across collaborations, co-invented drugs, and co-founded companies. The company highlighted encouraging initial clinical evidence for Ajax’s AJ11095 and a new Simcere collaboration that provides eligibility for development and commercial milestones plus royalties.

Schrodinger Stock Up 8.6%

SDGR traded up $1.41 on Thursday, reaching $17.81. The company’s stock had a trading volume of 2,739,021 shares, compared to its average volume of 1,351,566. The company has a market capitalization of $1.31 billion, a price-to-earnings ratio of -12.63 and a beta of 1.63. Schrodinger has a fifty-two week low of $10.94 and a fifty-two week high of $23.02. The stock has a 50 day moving average of $15.55 and a two-hundred day moving average of $13.69.

Key Stories Impacting Schrodinger

Here are the key news stories impacting Schrodinger this week:

• Positive Sentiment: Q2 results significantly exceeded expectations. Schrödinger reported adjusted earnings of $0.08 per share, compared with the consensus estimate of a $0.41 loss, while revenue of $58.9 million topped forecasts of approximately $47.2 million. Revenue increased 7.5% year over year, and results improved substantially from the $0.65-per-share loss recorded in the prior-year quarter. Schrödinger Reports Second Quarter 2026 Financial Results
• Positive Sentiment: BMS collaboration strengthens the AI growth narrative. Schrödinger announced a strategic collaboration and software agreement with Bristol Myers Squibb to deploy Bunsen, its AI “co-scientist” platform, for agentic drug discovery. The agreement provides external validation of the technology and could support future software adoption and revenue opportunities, although the articles do not disclose financial terms. Schrödinger Announces Strategic Collaboration and Software Agreement with Bristol Myers Squibb
• Neutral Sentiment: Management’s earnings presentation and call will be important for sustaining the rally. Investors are likely focused on commentary regarding software bookings, the Bunsen rollout, pharmaceutical collaborations, and the durability of the quarter’s profitability, rather than treating one profitable quarter as a permanent shift. Schrödinger Q2 2026 Earnings Call Transcript
• Negative Sentiment: Schrödinger remains unprofitable on broader measures. Despite the quarterly earnings beat, the company reported a negative net margin and negative return on equity, and analysts still expect a full-year loss. Revenue growth also remains moderate, so the stock’s higher valuation and long-term bull case depend on continued software growth and successful AI commercialization.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. KeyCorp decreased their target price on Schrodinger from $25.00 to $20.00 and set an “overweight” rating for the company in a report on Wednesday, April 8th. Morgan Stanley cut their price target on Schrodinger from $19.00 to $17.00 and set an “equal weight” rating on the stock in a report on Thursday, May 14th. Wall Street Zen lowered Schrodinger from a “hold” rating to a “strong sell” rating in a research report on Saturday, May 9th. Finally, Weiss Ratings upgraded Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Schrodinger has a consensus rating of “Hold” and an average price target of $20.25.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Quarry LP boosted its position in Schrodinger by 73.6% during the third quarter. Quarry LP now owns 2,401 shares of the company’s stock worth $48,000 after purchasing an additional 1,018 shares in the last quarter. Entropy Technologies LP increased its position in shares of Schrodinger by 11.5% in the fourth quarter. Entropy Technologies LP now owns 12,946 shares of the company’s stock valued at $231,000 after buying an additional 1,336 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Schrodinger by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,055 shares of the company’s stock valued at $653,000 after buying an additional 1,412 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Schrodinger in the 4th quarter worth about $26,000. Finally, Captrust Financial Advisors grew its stake in Schrodinger by 8.3% in the 4th quarter. Captrust Financial Advisors now owns 21,699 shares of the company’s stock valued at $388,000 after acquiring an additional 1,655 shares during the last quarter. Institutional investors and hedge funds own 79.05% of the company’s stock.

Schrodinger Company Profile

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.