Schrodinger (NASDAQ:SDGR) Announces Earnings Results

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

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 Trading Up 4.9%

SDGR stock traded up $1.34 during midday trading on Wednesday, hitting $28.52. 1,894,047 shares of the company’s stock were exchanged, compared to its average volume of 1,545,854. Schrodinger has a 12-month low of $10.94 and a 12-month high of $33.78. The firm has a 50 day moving average price of $25.26 and a 200-day moving average price of $16.90. The stock has a market capitalization of $2.11 billion, a price-to-earnings ratio of -38.54 and a beta of 1.69.

Insider Activity at Schrodinger

In related news, insider Karen Akinsanya sold 31,599 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $29.37, for a total value of $928,062.63. Following the completion of the sale, the insider directly owned 69,956 shares of the company’s stock, valued at $2,054,607.72. The trade was a 31.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 10.10% of the company’s stock.

Analysts Set New Price Targets

Several research firms have issued reports on SDGR. UBS Group raised their price target on shares of Schrodinger from $19.00 to $21.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 20th. KeyCorp boosted their price target on Schrodinger from $20.00 to $32.00 and gave the company an “overweight” rating in a report on Friday, October 16th. TD Cowen lifted their price objective on Schrodinger from $20.00 to $31.00 and gave the company a “buy” rating in a research report on Tuesday, October 13th. Zacks Research upgraded shares of Schrodinger from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. Finally, Wall Street Zen raised shares of Schrodinger from a “strong sell” rating to a “hold” rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Schrodinger presently has an average rating of “Moderate Buy” and a consensus target price of $25.83.

About Schrodinger

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.