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

Schrodinger (NASDAQ:SDGR) released its quarterly earnings results on Wednesday. The company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.57, Zacks reports. Schrodinger had a negative return on equity of 48.24% and a negative net margin of 68.49%.The business had revenue of $87.24 million during the quarter, compared to analyst estimates of $83.66 million.

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 Stock Performance

SDGR stock opened at $11.80 on Thursday. The firm has a 50 day moving average price of $15.57 and a 200-day moving average price of $17.91. Schrodinger has a 52-week low of $11.11 and a 52-week high of $27.63. The firm has a market capitalization of $869.31 million, a price-to-earnings ratio of -4.90 and a beta of 1.57.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC bought a new stake in Schrodinger in the fourth quarter worth $26,000. State of Wyoming purchased a new position in shares of Schrodinger in the 2nd quarter worth about $39,000. Quarry LP boosted its stake in Schrodinger by 73.6% in the 3rd quarter. Quarry LP now owns 2,401 shares of the company’s stock worth $48,000 after purchasing an additional 1,018 shares in the last quarter. Canada Pension Plan Investment Board purchased a new stake in Schrodinger during the 2nd quarter valued at about $143,000. Finally, Entropy Technologies LP grew its position in Schrodinger by 11.5% during the 4th quarter. Entropy Technologies LP now owns 12,946 shares of the company’s stock valued at $231,000 after purchasing an additional 1,336 shares during the last quarter. Hedge funds and other institutional investors own 79.05% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Wall Street Zen raised Schrodinger from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. TD Cowen restated a “buy” rating on shares of Schrodinger in a report on Thursday, January 8th. Bank of America raised shares of Schrodinger from a “neutral” rating to a “buy” rating and set a $24.00 target price on the stock in a research note on Monday, December 15th. UBS Group began coverage on shares of Schrodinger in a research note on Wednesday, January 7th. They issued a “neutral” rating and a $18.00 price target for the company. Finally, KeyCorp cut their price objective on Schrodinger from $28.00 to $25.00 and set an “overweight” rating on the stock in a research report on Thursday, January 8th. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Schrodinger has a consensus rating of “Hold” and a consensus target price of $24.33.

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.