Management Overview: CEO Ramy Farid reported a 54% increase in total revenue to $54 million for Q3 2025, driven by strong demand for software and drug discovery solutions, while adjusting software revenue growth guidance to 8%-13% due to delays in pharma scale-up opportunities.
Financial Performance: The company achieved software revenue of $40.9 million and drug discovery revenue of $13.5 million, with a net loss of $33 million. Operating expenses decreased, and cash reserves stood at $401 million as of September 30.
Strategic Focus: Schrödinger is shifting its strategy away from advancing internal discovery programs independently, emphasizing early-stage discovery partnerships and operational efficiency to navigate current market challenges.
Analyst Sentiment: Analysts expressed concerns about customer acquisition and growth visibility, noting a cautious tone from management regarding near-term uncertainties, while maintaining optimism about long-term growth potential.
Wall Street analysts forecast SDGR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SDGR is 21.83 USD with a low forecast of 18.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast SDGR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SDGR is 21.83 USD with a low forecast of 18.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 17.470
Low
18.00
Averages
21.83
High
25.00
Current: 17.470
Low
18.00
Averages
21.83
High
25.00
Morgan Stanley
Equal Weight
maintain
$18 -> $19
Al Analysis
2026-01-08
Reason
Morgan Stanley
Price Target
$18 -> $19
Al Analysis
2026-01-08
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Schrodinger to $19 from $18 and keeps an Equal Weight rating on the shares. The firm sees a continuation of U.S. small-to-mid cap biotech's outperformance in 2026 as commercial names transition from "capital consumers to producers" and Large Cap Biopharma faces a looming patent cliff, the analyst tells investors in an outlook note for the group.
KeyBanc
Overweight
downgrade
$28 -> $25
2026-01-08
Reason
KeyBanc
Price Target
$28 -> $25
2026-01-08
downgrade
Overweight
Reason
KeyBanc lowered the firm's price target on Schrodinger to $25 from $28 and keeps an Overweight rating on the shares. Coming off a choppy year for HCIT stocks, fundamentally, the firm did see a "year of inflection" for many of its names with estimate revisions plus valuations largely bottoming. While KeyBanc expects momentum to continue for most of its coverage, the firm does see valuation multiples impacted by competition concerns and regulatory impacts.
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TD Cowen
Brendan Smith
Buy
downgrade
$33 -> $24
2026-01-08
Reason
TD Cowen
Brendan Smith
Price Target
$33 -> $24
2026-01-08
downgrade
Buy
Reason
TD Cowen analyst Brendan Smith lowered the firm's price target on Schrodinger to $24 from $33 and keeps a Buy rating on the shares. The firm adjusted price targets in the diagnostic tools group group as part of a Q4 preview. Investor sentiment continues to inflect upward with 2026 guidance updates "key for positioning within the sector recovery," the analyst tells investors in a research note. TD is most positive on stocks "with clear multi-year frameworks and multiple avenues for upside to derisked growth assumptions."
UBS
Neutral
initiated
$18
2026-01-07
Reason
UBS
Price Target
$18
2026-01-07
initiated
Neutral
Reason
UBS initiated coverage of Schrodinger with a Neutral rating and $18 price target as the analyst initiated or assumed coverage on 22 small-to-mid cap biotech names. After a rough period, biotech fundamentals are now inflecting, contends the analyst, who expects investor confidence to recover and sees this positioning biotech for strong performance in 2026. Among the group, top picks include Apogee Therapeutics (APGE), Cogent Biosciences (COGT), Kodiak Sciences (KOD), Ideaya Biosciences (IDYA), Inventiva (IVA), SAB Biotherapeutics (SABS) and Ventyx Biosciences (VTYX), which the analyst highlights as having key upcoming catalysts, de-risked best-in-class portfolios, strong data, and broader pipelines.
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.
