Insights from 4 Analyst Ratings on Schrodinger
Analyst Ratings Overview: Schrodinger (SDGR) received mixed ratings from four analysts, with two being somewhat bullish and two indifferent over the last quarter, reflecting a shift in sentiment compared to previous months.
Price Target Insights: Analysts have set an average 12-month price target of $23.5 for Schrodinger, down from $31.67, with estimates ranging from a low of $19.00 to a high of $30.00.
Financial Performance Metrics: Schrodinger's revenue growth rate is approximately 15.69%, but it struggles with profitability, showing a net margin of -78.84% and ROE of -12.05%, indicating challenges in cost management and equity utilization.
Debt Management Position: The company maintains a favorable debt-to-equity ratio of 0.33, suggesting a lower reliance on debt financing compared to industry averages, which may be viewed positively by investors.
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- Earnings Report Schedule: Schrödinger, Inc. will release its Q1 2026 financial results on May 5, 2026, after market close, reflecting ongoing progress and market performance in molecular discovery.
- Conference Call Details: The company will host a conference call and webcast at 4:30 p.m. ET, allowing investors to access the live stream via the 'Investors' section of its website, enhancing investor engagement.
- Technological Platform Strength: Schrödinger's computational platform, built on over 30 years of R&D investment, supports drug development and materials design, attracting widespread use by biotechnology, pharmaceutical, and industrial companies as well as academic institutions globally, showcasing its competitive edge.
- Strategic Collaborations and Growth: The company leverages its software platform to advance a portfolio of collaborative and proprietary programs, further solidifying its leadership position in molecular discovery and driving future business growth.
- Strategic Shift: Schrodinger Inc aims to transition 75% of its software contracts to hosted models within three years, responding to customer demand for cloud solutions, which will help expand its user base and enhance market competitiveness.
- AI Integration Partnership: The company is collaborating with AI firms like Anthropic to integrate AI features into its platform, which is expected to improve user efficiency, thereby enhancing customer satisfaction and loyalty.
- Financial Performance: In Q4 2025, Schrodinger reported revenue of $87.2 million, a 1.2% year-over-year decline, yet exceeding the forecast of $83.65 million, with drug discovery revenue more than doubling to $18 million, indicating strong performance in drug development.
- Partnership Development: Schrodinger's partnership with Eli Lilly allows it to integrate the AI-driven TuneLab platform into its cloud-based LiveDesign platform, further enhancing efficiency and cost-effectiveness for biotech companies in drug development.
- Employee Incentive Program: On April 16, 2026, Schrödinger granted 4,253 restricted stock units (RSUs) to four new employees, aimed at attracting talent and enhancing retention, in compliance with Nasdaq Listing Rule 5635(c)(4).
- Grant Conditions: These RSUs are awarded under the company's 2021 Inducement Equity Incentive Plan, with 25% vesting after 12 months of continuous service, and the remainder vesting in equal annual installments over the subsequent three years, ensuring long-term employee commitment.
- Company Background: Founded in 1990, Schrödinger has approximately 800 employees and focuses on transforming molecular discovery through its computational platform, serving biotechnology, pharmaceutical, and industrial companies, showcasing significant market potential and technological advantages.
- Global Operations: Operating from 15 locations worldwide, Schrödinger's software platform, built on over 30 years of R&D investment, is licensed by various institutions, further solidifying its leadership in molecular design and drug development.
- Stock Option Grant: On March 14, 2026, Schrödinger granted a newly hired employee a stock option to purchase 1,950 shares at an exercise price of $12.51 per share, aligning with Nasdaq Listing Rule to attract talent and enhance employee loyalty.
- Restricted Stock Units: The company also awarded 4,375 restricted stock units (RSUs) to two new employees, reflecting the company's commitment to investing in its workforce under the 2021 Inducement Equity Incentive Plan.
- Vesting Schedule: Both the stock options and RSUs vest over four years, with 25% vesting after the first 12 months, followed by monthly or yearly installments, ensuring a long-term incentive for employee retention and service.
- Company Overview: Founded in 1990, Schrödinger employs approximately 800 people and focuses on molecular discovery through its computational platform, serving the biotechnology and pharmaceutical sectors, showcasing strong market competitiveness and technological prowess.

- Significant Revenue Growth: Schrödinger reported total revenue of $256 million for 2025, reflecting a 23% increase despite challenges from tight pharma budgets and biotech capital markets, underscoring the company's strong market position in molecular discovery.
- Software Business Performance: The software segment generated $199.5 million in revenue, an 11% increase year-over-year, while drug discovery revenue more than doubled to $56.4 million, indicating success in new product launches and customer expansion.
- Strategic Transition Progress: Schrödinger is shifting towards a primarily hosted licensing model, with expectations for 10% to 15% growth in annual contract value (ACV) for 2026, aiming for substantial growth in the coming years.
- Cost Control Effectiveness: Total operating expenses were $310 million, a decrease of approximately 9% compared to 2024, as the company implemented cost reduction initiatives, enhancing confidence in future profitability.
- Oversold Stocks Overview: The healthcare sector's oversold stocks present investors with opportunities to buy undervalued companies, particularly those with a Relative Strength Index (RSI) below 30, indicating potential short-term rebounds.
- Schrödinger Inc Performance: Schrödinger (NASDAQ:SDGR) has seen its stock price fall approximately 28% over the past month, currently holding an RSI of 29.9 and a 52-week low of $11.15, although shares rose 1.6% to $11.81 on Wednesday, indicating some rebound potential.
- Edge Stock Ratings: With a momentum score of 2.78, Schrödinger's performance is relatively weak in the market, yet its oversold status may attract investor interest, especially during market recoveries.
- Industry Dynamics Analysis: As the healthcare sector experiences volatility, investors should focus on the potential rebound opportunities of oversold stocks, particularly those with RSIs near or below 30, to capitalize on gains when the market stabilizes.








