Schrodinger (NASDAQ:SDGR) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Schrodinger (NASDAQ:SDGR) released its earnings results on Wednesday. The company reported ($0.50) earnings per share for the quarter, topping the consensus estimate of ($0.67) by $0.17, FiscalAI reports. Schrodinger had a negative net margin of 22.02% and a negative return on equity of 17.66%. The business had revenue of $64.49 million for the quarter, compared to the consensus estimate of $47.73 million. During the same period last year, the firm posted ($0.45) earnings per share. The firm’s quarterly revenue was up 18.7% compared to the same quarter last year.

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 Performance

Shares of NASDAQ SDGR traded up $1.79 during mid-day trading on Friday, reaching $30.57. The company had a trading volume of 561,307 shares, compared to its average volume of 1,544,129. The company has a market capitalization of $2.26 billion, a price-to-earnings ratio of -38.69 and a beta of 1.69. The stock has a fifty day moving average of $25.61 and a two-hundred day moving average of $17.01. Schrodinger has a 12-month low of $10.94 and a 12-month high of $33.78.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. BMO Capital Markets raised their price objective on shares of Schrodinger from $24.00 to $30.00 and gave the stock an “outperform” rating in a research note on Monday, October 12th. Zacks Research downgraded shares of Schrodinger from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. UBS Group increased their target price on Schrodinger from $19.00 to $21.00 and gave the company a “neutral” rating in a report on Tuesday, October 20th. Wall Street Zen raised Schrodinger from a “strong sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings raised Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, August 27th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $26.67.

Insider Buying and Selling

In other Schrodinger news, insider Karen Akinsanya sold 31,599 shares of the company’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 value of $928,062.63. Following the transaction, the insider owned 69,956 shares in the company, valued at approximately $2,054,607.72. This represents a 31.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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.