Schrodinger, Inc. (SDGR)

In January 2026, Schrödinger updated its 2025 progress and outlined 2026 strategic priorities, highlighting agreements with Lilly and Manas AI. TD Cowen reiterated a "Buy" rating, while UBS initiated coverage with a "Neutral" rating. KeyCorp lowered its price target, and Wall Street Zen downgraded the stock to "Sell." In December 2025, the company reported inducement grants and experienced a gap up following an analyst upgrade. Capital Fund Management S.A. acquired a position in Schrödinger, Inc. In November 2025, Schrödinger filed its 10-Q report, showing increased revenues in both software and drug discovery segments, despite a net loss, and reported Q3 2025 earnings, beating EPS estimates with revenue up year-over-year. In October 2025, Weiss Ratings reissued a "sell" rating. In September 2025, The Goldman Sachs Group initiated coverage with a "neutral" rating. In August 2025, Schrödinger reported its Q2 2025 earnings with a non-GAAP loss, but total revenues increased due to rises in software and drug discovery revenues. Analyst sentiment was mixed due to a pipeline setback.

Schrödinger's drug discovery revenue is typically weighted towards the back half of the year. While software revenue has shown consistent growth, the increasing proportion of hosted revenue is expected to reduce seasonality over time. In Q3 2025, software revenue was $40.9 million, and drug discovery revenue was $13.5 million.

Schrödinger, Inc. is a global scientific software and biotechnology company specializing in computational tools for drug discovery and materials science. It operates on a dual-engine model, generating revenue from software licensing and drug discovery collaborations. The company provides a physics-based and machine learning platform to accelerate molecular discovery for clients in pharmaceutical, biotech, and materials science industries. Its major products and services include a computational platform, software solutions, LiveDesign, and drug discovery services, with programs like SGR-1505, SGR-2921, and SGR-3515.

Schrödinger, Inc. is headquartered in New York, New York, and serves a worldwide market. The company has approximately 800 employees operating from 15 locations globally, and its software is used by researchers at over 1,760 academic institutions worldwide.

Schrödinger's brand reputation has been largely positive due to its innovative technology and strategic positioning, but it faces profitability challenges. The company is recognized for its groundbreaking work and AI-driven platform, receiving positive attention from analysts. It is also noted for its customer service and knowledgeable Application Scientists, with its software segment showing robust growth. However, analyst sentiment has been mixed due to a pipeline setback, and the company received "sell" ratings from Weiss Ratings and Wall Street Zen. Despite revenue growth, Schrödinger reported a net loss for Q3 2025, highlighting challenges in balancing innovation investment with profitability.

Schrödinger, Inc. has a mixed ownership structure including institutional, retail, and individual investors. Major institutional holders include BlackRock, Inc., Bill & Melinda Gates Foundation Trust, The Vanguard Group, Inc., Rubric Capital Management LP, Sumitomo Mitsui Trust Holdings, Inc., and State Street Global Advisors, Inc. As of September 2025, institutional ownership was around 95.51%. The Bill & Melinda Gates Foundation Trust is a significant individual shareholder.