Schrodinger (NASDAQ:SDGR) Issues Quarterly Earnings Results, Beats Expectations By $0.49 EPS

Schrodinger (NASDAQ:SDGR) posted its quarterly earnings data on Wednesday. The company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.49, FiscalAI reports. Schrodinger had a negative net margin of 20.98% and a negative return on equity of 16.32%. The company 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 quarterly 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 Price Performance

Shares of SDGR stock traded up $0.44 during trading hours on Friday, reaching $18.25. The company had a trading volume of 936,132 shares, compared to its average volume of 1,350,785. The company has a market cap of $1.35 billion, a price-to-earnings ratio of -24.55 and a beta of 1.63. Schrodinger has a 12 month low of $10.94 and a 12 month high of $23.02. The business has a fifty day simple moving average of $15.63 and a 200-day simple moving average of $13.70.

Hedge Funds Weigh In On Schrodinger

Several large investors have recently bought and sold shares of the stock. Captrust Financial Advisors grew its holdings in shares of Schrodinger by 8.3% in the fourth quarter. Captrust Financial Advisors now owns 21,699 shares of the company’s stock valued at $388,000 after acquiring an additional 1,655 shares in the last quarter. Inceptionr LLC purchased a new position in Schrodinger in the fourth quarter worth $353,000. PharVision Advisers LLC purchased a new position in Schrodinger in the third quarter worth $286,000. Tower Research Capital LLC TRC grew its stake in Schrodinger by 59.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 14,380 shares of the company’s stock valued at $289,000 after purchasing an additional 5,364 shares during the period. Finally, Connecticut Wealth Management LLC purchased a new stake in shares of Schrodinger during the 2nd quarter valued at $244,000. 79.05% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

SDGR has been the subject of several research analyst reports. Morgan Stanley lowered 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. Wall Street Zen downgraded shares of Schrodinger from a “hold” rating to a “strong sell” rating in a research note on Saturday, May 9th. Finally, Weiss Ratings raised shares of Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $20.25.

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.