Schrodinger (NASDAQ:SDGR) Announces Quarterly Earnings Results, Beats Expectations By $0.57 EPS

Schrodinger (NASDAQ:SDGR) released its earnings results on Wednesday. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.57, Zacks reports. Schrodinger had a negative return on equity of 29.86% and a negative net margin of 40.37%.The firm had revenue of $87.24 million for the quarter, compared to analysts’ expectations of $83.66 million. During the same quarter in the previous year, the business posted ($0.24) earnings per share. The business’s revenue for the quarter was up 4.7% on a year-over-year basis.

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

• The company is accelerating a shift from on?prem to a hosted model (target ~75% hosted by 2028), which will cause near?term revenue recognition headwinds and compress gross margins/adjusted EBITDA despite no change to ACV or cash; management says each 1% increase in hosted mix roughly reduces current?year revenue by $2–$3M.
• Schrödinger guided full?year 2026 software ACV of $218M–$228M (10%–15% growth) and reiterated a path to positive adjusted EBITDA by end of 2028, supported by a strong cash position (~$400M) to fund growth and the hosted transition.
• 2025 results showed solid momentum: total revenue of $256M (23% YoY growth), software ACV ~$198.5M, software revenue ~$199.5M, and an improved net loss of $103M vs $187M in 2024 with operating expenses down ~9%.
• Therapeutics remains a material optional upside — drug discovery revenue was $56.4M in 2025, the company has 16 programs eligible for royalties and up to ~$5B in possible future milestones, and near?term clinical catalysts include phase I readouts (SGR?1505/3515) and WEE1/Myt1 data expected in Q2.
• New products and AI positioning are expected to drive incremental growth: the Predictive Tox beta outperformed expectations, multiple product launches are included in the 3?year growth plan, and management argues its physics?plus?AI platform benefits from rising agentic AI compute demand under a throughput licensing model.

Schrodinger Price Performance

Shares of SDGR stock traded down $0.85 on Friday, reaching $11.91. 703,614 shares of the company were exchanged, compared to its average volume of 1,469,044. The company has a 50-day moving average of $15.48 and a 200-day moving average of $17.88. The company has a market cap of $877.34 million, a price-to-earnings ratio of -8.40 and a beta of 1.57. Schrodinger has a one year low of $11.11 and a one year high of $27.63.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Schrodinger by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,055 shares of the company’s stock worth $653,000 after acquiring an additional 1,412 shares during the period. Inceptionr LLC purchased a new stake in shares of Schrodinger during the 4th quarter valued at $353,000. Norges Bank bought a new stake in shares of Schrodinger during the 2nd quarter worth $311,000. Tower Research Capital LLC TRC boosted its holdings in shares of Schrodinger by 59.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 14,380 shares of the company’s stock worth $289,000 after buying an additional 5,364 shares during the last quarter. Finally, PharVision Advisers LLC bought a new position in Schrodinger during the third quarter valued at about $286,000. Institutional investors own 79.05% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Wall Street Zen raised shares of Schrodinger from a “sell” rating to a “hold” rating in a report on Saturday, January 31st. Bank of America raised Schrodinger from a “neutral” rating to a “buy” rating and set a $24.00 price target for the company in a research note on Monday, December 15th. TD Cowen reiterated a “buy” rating on shares of Schrodinger in a report on Thursday, January 8th. UBS Group began coverage on shares of Schrodinger in a report on Wednesday, January 7th. They set a “neutral” rating and a $18.00 price target for the company. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Schrodinger in a research note on Friday, January 9th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $21.75.

About Schrodinger

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.