Schrödinger, Inc. Q1 2026 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SDGR?
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SDGR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 12.980
Low
18.00
Averages
21.83
High
25.00
Current: 12.980
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, 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
Schrodinger Inc's Strategic Shift to AI and Hosted Contracts
- 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.
See More
Schrödinger Grants Restricted Stock Units to New Employees
- 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.
See More
Schrödinger Grants Stock Options and RSUs to New Employees
- 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.
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
Schrodinger Inc's Strategic Shift to AI and Hosted Contracts
- 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.
See More
Schrödinger Grants Restricted Stock Units to New Employees
- 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.
See More
Schrödinger Grants Stock Options and RSUs to New Employees
- 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.
See More
