Schrödinger, Inc. Q1 2026 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2026
0mins
Source: seekingalpha
- Significant Revenue Growth: Schrödinger reported $28.4 million in ACV for Q1 2026, a 12% increase year-over-year, with drug discovery revenue contributing $23 million, indicating strong performance in the biopharmaceutical sector that is expected to drive future revenue growth.
- Optimized Software Revenue Structure: The company achieved $35.6 million in software revenue for the quarter, with 34% or $12.1 million coming from hosted revenue, and management noted that this transition will better align revenue with operational growth, enhancing financial predictability.
- Clinical R&D Progress: SGR-3515 demonstrated a 65% disease control rate among evaluable patients, while SGR-1505 achieved a 100% response rate in patients with Waldenstrom's macroglobulinemia, indicating positive advancements in the company's oncology drug development efforts.
- Stable Financial Outlook: The company maintains its full-year 2026 ACV guidance in the range of $218 million to $228 million, with drug discovery revenue expected between $55 million and $65 million, reflecting management's confidence in future performance despite risks of revenue variability.
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Analyst Views on SDGR
Wall Street analysts forecast SDGR stock price to rise
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 13.150
Low
18.00
Averages
21.83
High
25.00
Current: 13.150
Low
18.00
Averages
21.83
High
25.00
About SDGR
Schrodinger, Inc. operates a physics-based computational platform that enables the discovery of molecules for drug development and materials applications. The software platform is used by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. Its segments include Software and Drug Discovery. The Software segment is focused on selling its software to transform drug discovery across the life sciences industry, as well as to customers in the material science industries. The Drug Discovery segment is focused on building a diverse portfolio of preclinical and clinical programs, internally and through collaborations, that have advanced to various stages of discovery and development. The Company's pipeline of drug discovery programs includes SGR-1505 (MALT1 Inhibitor), SGR-2921 (CDC7 Inhibitor), SGR-3515 (WEE1 Inhibitor), and others. Its software has been used by researchers around the world at more than 1,818 academic institutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Schrödinger Grants Stock Options and RSUs to New Employees
- Stock Option Grant: On May 18, 2026, Schrödinger granted a non-statutory stock option to purchase 1,875 shares at an exercise price of $12.05 per share to a newly hired employee, aligning with the company's strategic goal of attracting talent.
- Restricted Stock Units: The company also awarded 18,766 restricted stock units (RSUs) to seven new employees, which were granted under the 2021 Inducement Equity Incentive Plan, aimed at enhancing long-term employee retention.
- Grant Conditions: The stock options vest over four years, with 25% vesting after 12 months of service and the remainder vesting monthly, ensuring employees remain with the company to fully realize their benefits, thereby increasing loyalty.
- Company Background: Founded in 1990, Schrödinger employs approximately 800 people and is focused on transforming molecular discovery through its computational platform, serving the global biotechnology and pharmaceutical sectors, showcasing strong market competitiveness.
See More
Biotech Investment Environment Improves
- Improved Market Conditions: Biotech investors are experiencing a friendlier macro environment not seen in years, with stabilizing interest rates, increased FDA activity, and pharmaceutical companies holding billions in cash while facing patent cliffs, creating a favorable backdrop for smaller biotech firms.
- Schrödinger's Growth Potential: Schrödinger (SDGR) is guiding for a 10% to 15% growth in annual contract value (ACV) for 2026, reaching between $218 million and $228 million, showcasing strong growth potential in drug discovery, while reporting total revenue of $256 million for 2025, making it one of the few profitable AI-driven biotech companies.
- Sarepta's Commercial Challenges: Sarepta (SRPT) reported net product revenue of $1.86 billion for 2025, and despite ongoing safety controversies surrounding its Elevidys gene therapy, it maintains a 2026 revenue guidance of $1.2 billion to $1.4 billion, demonstrating a robust commercial foundation in the Duchenne muscular dystrophy market.
- NRX's Regulatory Progress: NRX Pharmaceuticals (NRXP) has received positive feedback from the FDA regarding its lead drug candidate, with a potential decision expected this summer, and while it faces financing and execution risks, its focus on severe depression treatments is attracting increasing investor interest.
See More
Analysis of Biotech Companies' Prospects
- AI-Driven Drug Discovery: Schrödinger reported total revenue of $256 million in 2025, with $200 million from software, and management anticipates a 10% to 15% growth in annual contract value for 2026, highlighting its strong potential in drug development and market demand.
- Sarepta's Gene Therapy Challenges: Sarepta achieved net product revenue of $1.86 billion in 2025, and despite safety concerns surrounding Elevidys, the company maintains its revenue guidance of $1.2 billion to $1.4 billion for 2026, indicating its ongoing competitiveness in the gene therapy market.
- NRX's Regulatory Progress: NRX Pharmaceuticals is developing treatments for severe depression, and recent FDA feedback indicated no major issues with its preservative-free ketamine, with a potential decision expected this summer, which could significantly increase market attention if approved.
- Improving Macro Environment: Biotech investors are experiencing a more favorable macro environment with stabilizing interest rates and increased FDA activity, providing a fertile backdrop for smaller biotech companies with strong pipelines and differentiated technologies to thrive.
See More
Schrödinger, Inc. Q1 2026 Earnings Call Highlights
- Significant Revenue Growth: Schrödinger reported $28.4 million in ACV for Q1 2026, a 12% increase year-over-year, with drug discovery revenue contributing $23 million, indicating strong performance in the biopharmaceutical sector that is expected to drive future revenue growth.
- Optimized Software Revenue Structure: The company achieved $35.6 million in software revenue for the quarter, with 34% or $12.1 million coming from hosted revenue, and management noted that this transition will better align revenue with operational growth, enhancing financial predictability.
- Clinical R&D Progress: SGR-3515 demonstrated a 65% disease control rate among evaluable patients, while SGR-1505 achieved a 100% response rate in patients with Waldenstrom's macroglobulinemia, indicating positive advancements in the company's oncology drug development efforts.
- Stable Financial Outlook: The company maintains its full-year 2026 ACV guidance in the range of $218 million to $228 million, with drug discovery revenue expected between $55 million and $65 million, reflecting management's confidence in future performance despite risks of revenue variability.
See More
Schrödinger to Participate in Multiple Healthcare Conferences
- Conference Participation: Schrödinger, Inc. announced its participation in the BofA Securities and RBC Global Healthcare Conferences in May 2026, with live discussions scheduled for May 13 and May 19, showcasing its advancements in molecular discovery.
- Investor Access: The live discussions will be accessible through the 'Investors' section of Schrödinger's website and will be archived for approximately 90 days post-event, ensuring investors can access relevant information at their convenience.
- Platform Advantage: Schrödinger's computational platform, built on over 30 years of R&D investment, enables the discovery of novel molecules for drug development and materials design, attracting widespread use among biotechnology and pharmaceutical companies globally.
- Company Scale and Impact: Founded in 1990, Schrödinger currently employs around 800 people across 15 locations worldwide, demonstrating its significant influence and market position in the field of molecular discovery.
See More
Schrödinger to Report Q1 2026 Financial Results on May 5
- 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.
See More
Schrödinger Grants Stock Options and RSUs to New Employees
- Stock Option Grant: On May 18, 2026, Schrödinger granted a non-statutory stock option to purchase 1,875 shares at an exercise price of $12.05 per share to a newly hired employee, aligning with the company's strategic goal of attracting talent.
- Restricted Stock Units: The company also awarded 18,766 restricted stock units (RSUs) to seven new employees, which were granted under the 2021 Inducement Equity Incentive Plan, aimed at enhancing long-term employee retention.
- Grant Conditions: The stock options vest over four years, with 25% vesting after 12 months of service and the remainder vesting monthly, ensuring employees remain with the company to fully realize their benefits, thereby increasing loyalty.
- Company Background: Founded in 1990, Schrödinger employs approximately 800 people and is focused on transforming molecular discovery through its computational platform, serving the global biotechnology and pharmaceutical sectors, showcasing strong market competitiveness.
See More
Biotech Investment Environment Improves
- Improved Market Conditions: Biotech investors are experiencing a friendlier macro environment not seen in years, with stabilizing interest rates, increased FDA activity, and pharmaceutical companies holding billions in cash while facing patent cliffs, creating a favorable backdrop for smaller biotech firms.
- Schrödinger's Growth Potential: Schrödinger (SDGR) is guiding for a 10% to 15% growth in annual contract value (ACV) for 2026, reaching between $218 million and $228 million, showcasing strong growth potential in drug discovery, while reporting total revenue of $256 million for 2025, making it one of the few profitable AI-driven biotech companies.
- Sarepta's Commercial Challenges: Sarepta (SRPT) reported net product revenue of $1.86 billion for 2025, and despite ongoing safety controversies surrounding its Elevidys gene therapy, it maintains a 2026 revenue guidance of $1.2 billion to $1.4 billion, demonstrating a robust commercial foundation in the Duchenne muscular dystrophy market.
- NRX's Regulatory Progress: NRX Pharmaceuticals (NRXP) has received positive feedback from the FDA regarding its lead drug candidate, with a potential decision expected this summer, and while it faces financing and execution risks, its focus on severe depression treatments is attracting increasing investor interest.
See More
Analysis of Biotech Companies' Prospects
- AI-Driven Drug Discovery: Schrödinger reported total revenue of $256 million in 2025, with $200 million from software, and management anticipates a 10% to 15% growth in annual contract value for 2026, highlighting its strong potential in drug development and market demand.
- Sarepta's Gene Therapy Challenges: Sarepta achieved net product revenue of $1.86 billion in 2025, and despite safety concerns surrounding Elevidys, the company maintains its revenue guidance of $1.2 billion to $1.4 billion for 2026, indicating its ongoing competitiveness in the gene therapy market.
- NRX's Regulatory Progress: NRX Pharmaceuticals is developing treatments for severe depression, and recent FDA feedback indicated no major issues with its preservative-free ketamine, with a potential decision expected this summer, which could significantly increase market attention if approved.
- Improving Macro Environment: Biotech investors are experiencing a more favorable macro environment with stabilizing interest rates and increased FDA activity, providing a fertile backdrop for smaller biotech companies with strong pipelines and differentiated technologies to thrive.
See More
Schrödinger, Inc. Q1 2026 Earnings Call Highlights
- Significant Revenue Growth: Schrödinger reported $28.4 million in ACV for Q1 2026, a 12% increase year-over-year, with drug discovery revenue contributing $23 million, indicating strong performance in the biopharmaceutical sector that is expected to drive future revenue growth.
- Optimized Software Revenue Structure: The company achieved $35.6 million in software revenue for the quarter, with 34% or $12.1 million coming from hosted revenue, and management noted that this transition will better align revenue with operational growth, enhancing financial predictability.
- Clinical R&D Progress: SGR-3515 demonstrated a 65% disease control rate among evaluable patients, while SGR-1505 achieved a 100% response rate in patients with Waldenstrom's macroglobulinemia, indicating positive advancements in the company's oncology drug development efforts.
- Stable Financial Outlook: The company maintains its full-year 2026 ACV guidance in the range of $218 million to $228 million, with drug discovery revenue expected between $55 million and $65 million, reflecting management's confidence in future performance despite risks of revenue variability.
See More
Schrödinger to Participate in Multiple Healthcare Conferences
- Conference Participation: Schrödinger, Inc. announced its participation in the BofA Securities and RBC Global Healthcare Conferences in May 2026, with live discussions scheduled for May 13 and May 19, showcasing its advancements in molecular discovery.
- Investor Access: The live discussions will be accessible through the 'Investors' section of Schrödinger's website and will be archived for approximately 90 days post-event, ensuring investors can access relevant information at their convenience.
- Platform Advantage: Schrödinger's computational platform, built on over 30 years of R&D investment, enables the discovery of novel molecules for drug development and materials design, attracting widespread use among biotechnology and pharmaceutical companies globally.
- Company Scale and Impact: Founded in 1990, Schrödinger currently employs around 800 people across 15 locations worldwide, demonstrating its significant influence and market position in the field of molecular discovery.
See More
Schrödinger to Report Q1 2026 Financial Results on May 5
- 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.
See More
