Schrodinger (NASDAQ:SDGR) Posts Quarterly Earnings Results, Misses Estimates By $0.25 EPS

Schrodinger (NASDAQ:SDGR) announced its quarterly earnings results 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. Schrodinger had a negative return on equity of 30.19% and a negative net margin of 40.61%.The company had revenue of $58.59 million for the quarter, compared to analyst estimates of $47.57 million. During the same quarter in the previous year, the company posted ($0.82) earnings per share. The firm’s revenue for the quarter was down 1.6% compared to the same quarter last year.

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 Price Performance

Shares of NASDAQ SDGR traded up $0.30 during midday trading on Thursday, reaching $13.28. 1,234,803 shares of the company traded hands, compared to its average volume of 1,397,134. The company has a market cap of $980.33 million, a price-to-earnings ratio of -9.42 and a beta of 1.57. The stock has a 50-day moving average price of $12.05 and a 200 day moving average price of $15.35. Schrodinger has a 52 week low of $10.94 and a 52 week high of $27.63.

Analysts Set New Price Targets

Several equities research analysts have weighed in on SDGR shares. KeyCorp dropped their target price on Schrodinger from $25.00 to $20.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 8th. Weiss Ratings reissued a “sell (e+)” rating on shares of Schrodinger in a report on Friday, January 9th. TD Cowen reaffirmed a “buy” rating on shares of Schrodinger in a report on Thursday, January 8th. Wall Street Zen upgraded shares of Schrodinger from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Finally, UBS Group reduced their target price on shares of Schrodinger from $18.00 to $13.00 and set a “neutral” rating for the company in a research note on Tuesday, March 17th. Four investment 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.com, Schrodinger has an average rating of “Hold” and a consensus price target of $20.50.

Insider Buying and Selling

In other Schrodinger news, CEO Ramy Farid sold 43,000 shares of the firm’s stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $12.33, for a total transaction of $530,190.00. Following the transaction, the chief executive officer owned 330,824 shares of the company’s stock, valued at approximately $4,079,059.92. This trade represents a 11.50% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 59,184 shares of company stock worth $741,556. 21.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Quarry LP raised its holdings in shares of Schrodinger by 73.6% during the 3rd quarter. Quarry LP now owns 2,401 shares of the company’s stock valued at $48,000 after purchasing an additional 1,018 shares in the last quarter. Entropy Technologies LP increased its position in Schrodinger by 11.5% during the fourth quarter. Entropy Technologies LP now owns 12,946 shares of the company’s stock worth $231,000 after buying an additional 1,336 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Schrodinger by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,055 shares of the company’s stock valued at $653,000 after buying an additional 1,412 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in Schrodinger during the fourth quarter valued at about $26,000. Finally, Captrust Financial Advisors lifted its position in shares of Schrodinger by 8.3% in the fourth quarter. Captrust Financial Advisors now owns 21,699 shares of the company’s stock worth $388,000 after buying an additional 1,655 shares during the last quarter. 79.05% of the stock is currently owned by institutional investors.

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.