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Schrodinger
(NASDAQ:SDGR)
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Rating:56Neutral
Price Target:
$18.00
▲(56.25% Upside)
Action:Reiterated
Date:06/30/26
The score is held back primarily by weak financial performance (ongoing losses and renewed TTM cash burn, plus inconsistent TTM revenue). Offsetting factors include favorable technical momentum and a relatively constructive earnings call with maintained ACV growth guidance, cost discipline, and strong liquidity, while valuation remains constrained by negative earnings and no dividend.
Positive Factors
Venture-creation monetization & platform validation
The Ajax acquisition payment and potential milestone upside validate Schrödinger’s venture-creation model and the commercial value of its platform. Realized cash proceeds de-risk execution, demonstrate third-party demand for co-discovered assets, and provide recurring optionality via future milestones/royalties that can materially supplement software revenue over time.
Negative Factors
Volatile cash generation / recent cash burn
Cash generation has been inconsistent and recently swung back to material negative operating and free cash flow, implying reliance on cash reserves or external financing if trends persist. This structural cash burn increases execution risk for R&D and commercialization and limits flexibility for opportunistic investments absent sustained improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Venture-creation monetization & platform validation
The Ajax acquisition payment and potential milestone upside validate Schrödinger’s venture-creation model and the commercial value of its platform. Realized cash proceeds de-risk execution, demonstrate third-party demand for co-discovered assets, and provide recurring optionality via future milestones/royalties that can materially supplement software revenue over time.
Read all positive factors
Schrodinger Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to identify where customers and growth are concentrated and to assess exposure to local regulatory, currency, and market cycles. Shifts across regions can signal new market penetration or rising risk from dependence on a particular geography or customer base.
Breaks down sales by region to identify where customers and growth are concentrated and to assess exposure to local regulatory, currency, and market cycles. Shifts across regions can signal new market penetration or rising risk from dependence on a particular geography or customer base.
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The Fly
The FlySchrodinger (SDGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)―
Beta (1Y)1.74
Revenue Growth10.59%
EPS Growth46.79%
CountryUS
Employees847
SectorHealthcare
Sector Strength45
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.41
Shares Outstanding65,556,530
10 Day Avg. Volume1,120,021
30 Day Avg. Volume1,339,391
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)3.61
Price to Sales (P/S)5.13
P/FCF Ratio105.42
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue3.95
Enterprise Value/Gross Profit7.14
Enterprise Value/Ebitda-10.65
Forecast
1Y Price Target
$20.25Price Target Upside75.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-2.17
Revenue Forecast (FY)$248.40M
Schrodinger Business Overview & Revenue Model
Company Description
Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications in the United States, the Asia-Pacific, Europe, Middle East,...
How the Company Makes Money
Schrödinger primarily generates revenue from two main sources: (1) Software revenue and (2) Drug discovery-related revenue.
1) Software revenue (commercial and academic customers)
- Software subscriptions and licenses: The core of the software bu...
Schrodinger Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlights robust top-line momentum (ACV growth of 12%), a large year-over-year surge in drug discovery revenue (~124%), strong product and R&D validation (Ajax acquisition, multiple exits, clinical data), meaningful progress migrating customers to hosted licensing, and an upcoming AI-driven product (Bunsen) expected to increase throughput and long‑term monetization. Offsetting these positives are near-term revenue recognition headwinds from the hosted transition, notable margin compression (software gross margin down 11 points), a steep drop in contribution revenue after a grant completed, and an ongoing net loss ($60M Q1), though management is exercising expense discipline and maintains guidance with a solid cash position (~$406M). On balance, the strategic wins, product momentum, and financial visibility (ACV guidance) materially outweigh the near-term recognition and margin challenges.Positive Updates
Annual Contract Value (ACV) Growth
ACV of $28.4 million in Q1 2026, a 12% increase year-over-year from $25.4 million in Q1 2025. Full-year ACV guidance maintained at $218M–$228M (10%–15% growth). Q2 ACV guide $19M–$23M (excludes contribution ACV).
Negative Updates
Software Gross Margin Compression
Software gross margin declined to 69% in Q1 2026 from 80% in Q1 2025 (down 11 percentage points, ~-13.8% relative), primarily due to the accelerated transition to hosted licensing which recognizes revenue ratably rather than upfront.
Read all updates
Q1-2026 Updates
Positive
Negative
Annual Contract Value (ACV) Growth
ACV of $28.4 million in Q1 2026, a 12% increase year-over-year from $25.4 million in Q1 2025. Full-year ACV guidance maintained at $218M–$228M (10%–15% growth). Q2 ACV guide $19M–$23M (excludes contribution ACV).
Read all positive updates
Company Guidance
Management maintained full‑year 2026 guidance, forecasting ACV of $218–$228M (10–15% growth) with Q2 ACV guidance of $19–$23M (excluding contribution ACV; Q2 2025 was $23.3M including $5M contribution). Q1 operating metrics included ACV $28.4M (+12% vs. $25.4M), total revenue $58.6M, software revenue $35.6M (hosted $12.1M, 34% of software; hosted = 27% on a trailing four‑quarter basis), drug discovery revenue $22.9M (vs. $10.2M), contribution revenue $0.1M (vs. $4.3M), software gross margin 69% (vs. 80% prior year), total operating expenses $78M (down 4% vs. $82M), total other expenses $11M, net loss $60M, cash and marketable securities ~$406M, and fully diluted share count 74M. For the full year they expect drug discovery revenue $55–$65M, clinical R&D of roughly $10–$15M as clinical activities wind down, operating expenses to be below 2025 levels, and a multi‑year target of ~75% hosted software mix.Schrodinger Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.91M | 255.87M | 207.54M | 216.67M | 180.96M | 137.93M |
| Gross Profit | 141.04M | 142.61M | 132.08M | 140.69M | 101.02M | 65.62M |
| EBITDA | -94.57M | -96.30M | -179.55M | 48.47M | -144.78M | -97.96M |
| Net Income | -103.48M | -103.27M | -187.12M | 40.72M | -149.19M | -100.39M |
Balance Sheet | ||||||
| Total Assets | 634.19M | 726.16M | 823.23M | 802.96M | 688.59M | 756.49M |
| Cash, Cash Equivalents and Short-Term Investments | 398.96M | 395.46M | 352.12M | 463.00M | 451.09M | 576.48M |
| Total Debt | 106.96M | 109.23M | 117.83M | 127.88M | 116.49M | 79.87M |
| Total Liabilities | 320.64M | 362.11M | 401.78M | 254.40M | 240.68M | 199.40M |
| Stockholders Equity | 313.55M | 364.05M | 421.44M | 548.56M | 447.89M | 557.07M |
Cash Flow | ||||||
| Free Cash Flow | -148.35M | 12.46M | -164.68M | -150.14M | -127.70M | -77.84M |
| Operating Cash Flow | -145.00M | 13.90M | -157.37M | -136.73M | -119.68M | -70.67M |
| Investing Cash Flow | 71.86M | 57.90M | 148.84M | 193.03M | 90.02M | -16.81M |
| Financing Cash Flow | 3.09M | 2.93M | 10.12M | 9.05M | 2.11M | 7.95M |
Schrodinger Technical Analysis
Positive
11.52
Price Trends
13.93
Positive
12.98
Positive
15.66
Positive
Market Momentum
0.79
Negative
63.73
Neutral
55.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDGR, the sentiment is Positive. The current price of 11.52 is below the 20-day moving average (MA) of 15.43, below the 50-day MA of 13.93, and below the 200-day MA of 15.66, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 55.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDGR.
Schrodinger Risk Analysis
Schrodinger disclosed 87 risk factors in its most recent earnings report. Schrodinger reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Schrodinger Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $4.95B | -229.47 | -2.86% | ― | 2.26% | 86.67% | |
63 Neutral | $1.08B | -72.91 | -1.43% | ― | 6.40% | -477.58% | |
61 Neutral | $1.96B | 96.72 | 1.64% | ― | 7.86% | -2.92% | |
56 Neutral | $1.26B | -11.97 | -30.85% | ― | 10.59% | 46.79% | |
54 Neutral | $448.84M | -4.53 | -140.63% | ― | 20.85% | -18.60% | |
52 Neutral | $112.08M | -0.48 | -67.07% | ― | -3.89% | 63.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SDGR
Schrodinger
16.88
-3.75
-18.18%
OMCL
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TXG
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39.01
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227.27%
CERT
Certara
6.97
-3.96
-36.23%
SOPH
SOPHiA GENETICS
5.35
2.10
64.62%
DH
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0.78
-3.25
-80.67%
Schrodinger Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Schrödinger Gains $57 Million From Ajax Acquisition Deal
Positive
Jun 29, 2026
Schrödinger, Inc. reported that, in connection with Eli Lilly and Company’s acquisition of Ajax Therapeutics, Inc., a venture it co-founded, it received an immediate cash payment of approximately $57 million. The deal structure also pro...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Schrödinger Shareholders Expand Equity Plan, Elect Directors
Positive
Jun 23, 2026
At its 2026 Annual Meeting of Stockholders held on June 22, 2026, Schrödinger’s shareholders approved an amendment to the 2022 Equity Incentive Plan, increasing the number of common shares available for issuance by 3,000,000, which expa...
Executive/Board ChangesRegulatory Filings and Compliance
Schrödinger Finalizes Transition Terms for Former Commercial Chief
Neutral
Jun 8, 2026
On June 5, 2026, Schrödinger, Inc. entered into a transition, separation and release of claims agreement with former Chief Commercial Officer and Global Head of Software Sales and Marketing Mannix Aklian, formalizing the previously disclosed ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Schrödinger Announces Leadership Change Amid Maintained 2026 Outlook
Neutral
May 20, 2026
On May 18, 2026, Schrödinger, Inc. announced that Mannix Aklian ceased serving as Chief Commercial Officer and Global Head of Software Sales and Marketing with immediate effect, marking a significant change in its commercial leadership. Forme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.