Schrodinger (NASDAQ:SDGR) Announces Quarterly Earnings Results

Schrodinger (NASDAQ:SDGR) announced its quarterly earnings data on Wednesday. The company reported $0.08 earnings per share for the quarter, topping 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 firm posted ($0.65) EPS. The company’s 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 SDGR stock traded up $0.75 on Wednesday, reaching $16.40. The company had a trading volume of 1,708,955 shares, compared to its average volume of 883,439. The company has a 50-day moving average of $15.55 and a 200-day moving average of $13.69. Schrodinger has a 12 month low of $10.94 and a 12 month high of $23.02. The stock has a market cap of $1.21 billion, a PE ratio of -11.63 and a beta of 1.63.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Los Angeles Capital Management LLC acquired a new position in shares of Schrodinger during the fourth quarter worth approximately $26,000. State of Wyoming bought a new position in shares of Schrodinger in the second quarter worth $39,000. Quarry LP grew its stake in Schrodinger by 73.6% during the third quarter. Quarry LP now owns 2,401 shares of the company’s stock valued at $48,000 after acquiring an additional 1,018 shares in the last quarter. Canada Pension Plan Investment Board purchased a new position in shares of Schrodinger during the second quarter worth about $143,000. Finally, Entropy Technologies LP grew its stake in shares of Schrodinger by 11.5% during 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 during the last quarter. Institutional investors own 79.05% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Weiss Ratings upgraded Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, July 29th. Wall Street Zen cut Schrodinger from a “hold” rating to a “strong sell” rating in a report on Saturday, May 9th. KeyCorp decreased their target price 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 objective on shares of Schrodinger from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 14th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $20.25.

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.