Schrodinger (NASDAQ:SDGR) Issues Earnings Results

Schrodinger (NASDAQ:SDGR) issued its quarterly earnings data on Wednesday. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.49, FiscalAI reports. The firm had revenue of $58.89 million during the quarter, compared to the consensus estimate of $47.19 million. Schrodinger had a negative net margin of 40.61% and a negative return on equity of 30.85%. The company’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.65) EPS.

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 Stock Up 4.8%

Schrodinger stock traded up $0.75 during trading on Wednesday, reaching $16.40. The stock had a trading volume of 1,708,955 shares, compared to its average volume of 883,439. The business has a 50 day moving average price of $15.55 and a 200 day moving average price of $13.69. The stock has a market cap of $1.21 billion, a PE ratio of -11.63 and a beta of 1.63. Schrodinger has a 52-week low of $10.94 and a 52-week high of $23.02.

Hedge Funds Weigh In On Schrodinger

Hedge funds have recently modified their holdings of the business. Los Angeles Capital Management LLC purchased a new position in Schrodinger during the fourth quarter worth about $26,000. State of Wyoming acquired a new stake in shares of Schrodinger in the second quarter worth approximately $39,000. Quarry LP boosted its holdings in Schrodinger by 73.6% in 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 during the last quarter. Canada Pension Plan Investment Board purchased a new position in Schrodinger in the second quarter valued at approximately $143,000. Finally, Entropy Technologies LP raised its position in Schrodinger by 11.5% in the fourth 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 period. 79.05% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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