Schrodinger (NASDAQ:SDGR) Releases Quarterly Earnings Results, Beats Expectations By $0.49 EPS

Schrodinger (NASDAQ:SDGR) released 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. Schrodinger had a negative net margin of 40.61% and a negative return on equity of 30.85%. The business had revenue of $58.89 million for the quarter, compared to analyst estimates of $47.19 million. During the same period in the prior year, the business earned ($0.65) earnings per share. The company’s quarterly revenue was up 7.5% on a year-over-year basis.

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 Trading Up 4.8%

Shares of Schrodinger stock traded up $0.75 during mid-day trading on Wednesday, hitting $16.40. 1,708,955 shares of the stock were exchanged, compared to its average volume of 883,439. The stock has a market capitalization of $1.21 billion, a price-to-earnings ratio of -11.63 and a beta of 1.63. Schrodinger has a twelve month low of $10.94 and a twelve month high of $23.02. The company has a 50-day simple moving average of $15.55 and a 200 day simple moving average of $13.69.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On Schrodinger

Several institutional investors and hedge funds have recently modified their holdings of the company. Invesco Ltd. boosted its position in Schrodinger by 5.7% during the fourth quarter. Invesco Ltd. now owns 190,763 shares of the company’s stock worth $3,411,000 after acquiring an additional 10,307 shares during the last quarter. Susquehanna Portfolio Strategies LLC raised its holdings in Schrodinger by 459.2% in the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 158,162 shares of the company’s stock valued at $2,828,000 after acquiring an additional 129,877 shares during the last quarter. Tudor Investment Corp ET AL raised its holdings in Schrodinger by 30.5% in the 4th quarter. Tudor Investment Corp ET AL now owns 438,925 shares of the company’s stock valued at $7,848,000 after acquiring an additional 102,546 shares during the last quarter. Perceptive Advisors LLC acquired a new position in Schrodinger in the 4th quarter valued at $3,619,000. Finally, Man Group plc lifted its stake in shares of Schrodinger by 170.5% during the 4th quarter. Man Group plc now owns 441,363 shares of the company’s stock worth $7,892,000 after purchasing an additional 278,189 shares during the period. Hedge funds and other institutional investors 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.