Schrodinger (NASDAQ:SDGR) Issues Earnings Results

Schrodinger (NASDAQ:SDGR) released its quarterly earnings data on Tuesday. The company reported ($0.81) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.56) by ($0.25), FiscalAI reports. The company had revenue of $58.59 million for the quarter, compared to analyst estimates of $47.57 million. Schrodinger had a negative return on equity of 29.47% and a negative net margin of 40.37%.The business’s quarterly revenue was down 1.6% on a year-over-year basis. During the same period last year, the firm posted ($0.82) EPS.

Here are the key takeaways from Schrodinger’s conference call:

• ACV grew to $28.4M in Q1 (+12% YoY) with trailing‑4 ACV of $201M, and the company maintained full‑year ACV guidance of $218M–$228M (10%–15% growth).
• Hosted licensing increased to 34% of software revenue (27% trailing‑4), advancing their throughput‑based, ratable revenue model for long‑term predictability but causing a near‑term headwind and a decline in software gross margin to 69%.
• The company plans an early access summer release of Bunsen, an agentic AI “co‑scientist” that has boosted internal productivity and is expected to drive higher compute throughput and greater uptake of throughput‑based licenses.
• Lilly’s announced acquisition of co‑founded Ajax (reported $2.3B) underscores Schrödinger’s collaboration model; the company holds ~6% equity in Ajax and expects to receive an upfront cash share on deal close, which would strengthen the balance sheet.
• Therapeutics progress includes encouraging clinical signals—SGR‑3515 Phase I showed tolerability and a 65% disease control rate at ≥100 mg, and SGR‑1505 showed durable 100% responses in Waldenström—while clinical activities are expected to largely finish by end‑2026 with ~$10M–$15M of R&D to wind down and seek partners.

Schrodinger Stock Performance

Shares of Schrodinger stock traded down $0.38 during trading hours on Wednesday, hitting $12.50. The company’s stock had a trading volume of 1,664,084 shares, compared to its average volume of 1,387,640. Schrodinger has a twelve month low of $10.94 and a twelve month high of $27.63. The firm has a fifty day moving average of $12.01 and a 200-day moving average of $15.40. The stock has a market cap of $922.38 million, a price-to-earnings ratio of -8.80 and a beta of 1.57.

Trending Headlines about Schrodinger

Here are the key news stories impacting Schrodinger this week:

• Positive Sentiment: Company raised FY‑2026 revenue guidance to $273.0M–$293.0M, above consensus (~$256.8M), signaling stronger expected top‑line growth for the year. Business Wire: Q1 Results
• Positive Sentiment: Reported revenue of $58.59M for Q1, above analyst estimates cited in several reports — a sign demand for the company’s platform and collaboration revenue remains solid. Q1 Slide Deck
• Neutral Sentiment: Management framed the strategy as “growth now, profits later,” indicating continued investment in R&D and commercial expansion — positive for long‑term revenue but pressure on near‑term margins. TipRanks: Call Highlights
• Neutral Sentiment: Earnings presentation and call transcript provide details on deal cadence, software vs. drug‑discovery revenue mix and pipeline investments — useful for modeling revenue ramp and margin outlook. Seeking Alpha: Slide Deck
• Negative Sentiment: EPS missed estimates: loss of $0.81 vs. consensus loss of $0.56, reinforcing that profitability remains a concern and likely a driver of the negative stock reaction. Zacks: Q1 Results
• Negative Sentiment: Revenue was down 1.6% year‑over‑year and the company remains unprofitable with negative net margin and ROE, which keeps valuation and near‑term upside constrained for risk‑averse investors. MarketBeat: Earnings Summary

Wall Street Analyst Weigh In

Several equities analysts have recently commented on SDGR shares. UBS Group decreased their price target on Schrodinger from $18.00 to $13.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 17th. Wall Street Zen raised Schrodinger from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. TD Cowen reaffirmed a “buy” rating on shares of Schrodinger in a research note on Thursday, January 8th. KeyCorp decreased their price target on Schrodinger from $25.00 to $20.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 8th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Schrodinger in a research note on Friday, January 9th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $20.50.

Insider Activity at Schrodinger

In other news, CEO Ramy Farid sold 43,000 shares of the company’s stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $12.33, for a total value of $530,190.00. Following the transaction, the chief executive officer owned 330,824 shares of the company’s stock, valued at $4,079,059.92. This represents a 11.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 59,184 shares of company stock valued at $741,556. Corporate insiders own 21.00% of the company’s stock.

Hedge Funds Weigh In On Schrodinger

Several hedge funds have recently bought and sold shares of SDGR. Los Angeles Capital Management LLC acquired a new position in Schrodinger during the 4th quarter worth about $26,000. State of Wyoming acquired a new position in Schrodinger during the 2nd quarter worth about $39,000. Quarry LP lifted its stake in Schrodinger by 73.6% during the 3rd quarter. Quarry LP now owns 2,401 shares of the company’s stock worth $48,000 after acquiring an additional 1,018 shares in the last quarter. Canada Pension Plan Investment Board acquired a new position in Schrodinger during the 2nd quarter worth about $143,000. Finally, Entropy Technologies LP lifted its stake in Schrodinger by 11.5% during the 4th quarter. Entropy Technologies LP now owns 12,946 shares of the company’s stock worth $231,000 after acquiring an additional 1,336 shares in the last quarter. Institutional investors and hedge funds own 79.05% of the company’s stock.

About Schrodinger

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.