Schrodinger (NASDAQ:SDGR) Issues Earnings Results

Schrodinger (NASDAQ:SDGR) announced its quarterly earnings results on Wednesday. The company reported ($0.50) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.67) by $0.17, FiscalAI reports. The company had revenue of $64.49 million for the quarter, compared to the consensus estimate of $47.73 million. Schrodinger had a negative net margin of 20.98% and a negative return on equity of 16.37%.

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

• ACV growth and outlook improved: Third-quarter ACV rose 17% year over year to $44.7 million, or 24% excluding contribution ACV, with growth across large pharma, biotech, and materials customers. Schrödinger raised its 2026 ACV guidance to $222 million–$232 million.
• Hosted licensing continued to expand, with a near-term reporting trade-off: Hosted revenue grew 49% and reached 45% of software revenue, while management said the shift to ratable recognition temporarily moderates reported software revenue; software gross margin was 75%, down from 77% a year earlier.
• Drug discovery revenue guidance rose on milestone activity: Revenue was $24.2 million versus $13 million a year ago, primarily due to a Structure Therapeutics milestone, and full-year guidance increased to $75 million–$85 million from $65 million–$75 million. The company also highlighted Tectora’s launch, Takeda’s priority review for zasocitinib, and progress in other partnered clinical programs.
• New computational products are gaining traction: Management reported strong early interest in Bunsen, which handles about 80% of Schrödinger’s internal high-throughput calculations, and said predictive toxicology evaluations are progressing and have already contributed to ACV. Bunsen remains in early access, and the company did not disclose customer usage or monetization details.
• Net loss widened despite lower operating expenses: Third-quarter net loss was $38 million, compared with $33 million a year earlier, while operating expenses fell 13% to $64 million. The company ended the quarter with $373 million in cash and marketable securities.

Schrodinger Stock Up 4.9%

Shares of NASDAQ:SDGR traded up $1.34 during trading on Wednesday, reaching $28.52. The stock had a trading volume of 1,894,047 shares, compared to its average volume of 1,545,854. The business has a fifty day moving average price of $25.26 and a 200-day moving average price of $16.90. The stock has a market cap of $2.11 billion, a P/E ratio of -38.54 and a beta of 1.69. Schrodinger has a fifty-two week low of $10.94 and a fifty-two week high of $33.78.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SDGR. KeyCorp upped their target price on Schrodinger from $20.00 to $32.00 and gave the company an “overweight” rating in a research note on Friday, October 16th. Zacks Research raised Schrodinger from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 5th. Wall Street Zen raised Schrodinger from a “strong sell” rating to a “hold” rating in a research report on Saturday, August 8th. UBS Group boosted their price target on Schrodinger from $19.00 to $21.00 and gave the stock a “neutral” rating in a report on Tuesday, October 20th. Finally, Weiss Ratings upgraded Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $25.83.

Insider Activity

In related news, insider Karen Akinsanya sold 31,599 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $29.37, for a total transaction of $928,062.63. Following the sale, the insider owned 69,956 shares in the company, valued at approximately $2,054,607.72. This trade represents a 31.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 10.10% of the company’s stock.

Schrodinger Company Profile

Schrödinger, Inc develops computational software and services designed to support pharmaceutical, biotechnology and materials research. Its platform uses physics-based modeling, machine learning and other computational methods to help scientists analyze molecular interactions, design compounds and prioritize candidates for experimental testing.

The company’s software offerings include tools for molecular modeling, quantum chemistry, molecular dynamics, virtual screening, property prediction and free-energy calculations.