Schrodinger(SDGR)
$31.52-0.89 (-2.75%)
SDGR
Schrodinger earnings date
$31.52
At close:-0.89 (-2.75%)
Want to see SDGR full AI Analyst Report?
Schrodinger (SDGR) Q3 2026 Earnings Report
2,137 Followers
SDGR Q3 2026 EPS Results
- Actual EPS
- -$0.50
- Consensus EPS
- -$0.67
- Beat/Miss
- Beat by +$0.17
- One Year Ago EPS
- -$0.45
SDGR Q3 2026 Revenue Results
- Actual Revenue
- $64.49M
- Expected Revenue
- $47.73M
- Beat/Miss
- Beat by +$16.76M
- YoY Revenue Growth
- +18.72%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
SDGR Upcoming Earnings
Schrodinger's next earnings date is estimated for March 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
SDGR Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. The company reported broad-based ACV and revenue growth, raised full-year ACV and drug discovery revenue guidance, reduced operating expenses, expanded hosted licensing, and cited strong progress in Bunsen, predictive toxicology, material science, and its therapeutics portfolio. The main negatives were the higher net loss, lower software gross margin during the hosted transition, mark-to-market other expense, limited visibility into Bunsen monetization and future milestone timing, and the earlier stage of material science adoption.
Company Guidance
For full year 2026, the company now expects ACV to be in the range of $222 million to $232 million, representing 12% to 17% growth over 2025; drug discovery revenue is expected to be in the range of $75 million to $85 million, compared to the prior expectation of $65 million to $75 million; and operating expenses are still expected to be less than 2025. The company outlined a 3-year view of $150 million of revenue over the next 3 years for drug discovery, with a baseline of roughly $50 million a year, while noting that milestones are harder to have visibility into, and expects to have the open beta for Bunsen this year.
- Strong ACV Growth and Raised GuidanceThird-quarter ACV was $44.7 million, up 17% year-over-year, or 24% excluding contribution ACV. Trailing four-quarter ACV was $214 million. Growth was driven by broader adoption within large pharmaceutical accounts, new products including Bunsen, growth among biotech and material science customers, and new customer additions. Full-year 2026 ACV guidance was raised to $222 million to $232 million, representing 12% to 17% growth over 2025.
- Revenue Growth and Hosted Licensing ExpansionThird-quarter total revenue was $64.5 million, a 19% increase. Software revenue was $38.2 million, including $17.2 million of hosted revenue, which increased 49% and represented 45% of software revenue versus 32% in the third quarter of 2025. On a trailing four-quarter basis, hosted revenue increased to 32% of software revenue from 23% in Q3 2025.
- Higher Drug Discovery Revenue and GuidanceDrug discovery revenue was $24.2 million versus $13 million in Q3 2025, primarily driven by a milestone payment associated with Structure Therapeutics' oral amylin program. Full-year 2026 drug discovery revenue guidance was raised to $75 million to $85 million from the prior expectation of $65 million to $75 million.
- Disciplined Operating Expense ManagementThird-quarter operating expenses were $64 million, down 13% from $74 million in Q3 2025, primarily due to lower clinical CRO costs and headcount-related expenses. Full-year operating expenses are still expected to be less than 2025.
- Strong Cash PositionThe company ended the quarter with $373 million in cash and marketable securities. The fully diluted share count was 74.9 million.
- Bunsen Customer Interest and Internal AdoptionCustomer interest in Bunsen, the company's Agentic AI co-scientist, was described as very strong, with enthusiastically positive early-access feedback and multiple customers evaluating the solution. Within Schrodinger, Bunsen became the primary interface for discovery workflows and handled approximately 80% of high-throughput calculations on the internal compute cluster. The company expects to have an open beta this year.
- Predictive Toxicology ExpansionThe predictive toxicology solution can now evaluate more than 80 potential off-target proteins computationally, approaching the company's goal for this time period. Commercial evaluations were progressing well, the solution had already contributed to ACV in 2026, and the company said the technology is intended to support toxicity screening earlier in drug discovery.
- Material Science Adoption and Research AdvancesCustomers across chemicals, energy storage, semiconductors and electronics were increasing their use of the platform. The company described material science as an important long-term growth driver that expands its software market beyond drug discovery. Schrodinger also published research in Nature on lithium-battery chemistry using its machine-learning force field and published a method for predicting the stability of organic electronic materials for OLED displays.
- Progress Across Partnered TherapeuticsTakeda's new drug application for zasocitinib, a TYK2 inhibitor co-invented with Nimbus, was accepted under priority review, with approval expected early next year. Zasocitinib was acquired by Takeda from Nimbus in 2023, and Schrodinger remains eligible for sales-based milestones. Zotemtegrast, discovered during the Morphic collaboration, is currently in multiple Phase II studies, including the TOPAZ-UC combination study with Lilly's mirikizumab.
- Launch of Tectora TherapeuticsSchrodinger co-founded Tectora Therapeutics with NEA and RA Capital, with $55 million in funding, anchored by two programs originated by Schrodinger's therapeutics team. Schrodinger contributed the early-stage immunology and inflammation programs SDGR-4594 and SDGR-8139 and received an equity stake, eligibility for future development and commercial milestones, and royalties on sales.
- Clinical Progress for ZilemaltibDose escalation in the Phase I study for the MALT1 inhibitor zilemaltib, or SGR-1505, was completed. An abstract was accepted for an oral presentation at the upcoming American Society of Hematology Annual Meeting, covering the favorable safety profile and clinical activity observed in patients with relapsed or refractory B-cell malignancies.
- Improved Biotech Funding EnvironmentManagement said biotech companies were experiencing materially less difficulty raising money than in the prior year, allowing them to continue focusing on their pipelines rather than only a single clinical asset. Management identified this as a major contributor to the quarter's results.
- Validated Platform and Customer DemandManagement said customers were increasingly confident that the platform's calculations would be correct, citing the company's track record in co-founded companies and pharmaceutical collaborations. Management also said speed was increasingly important to customers and that the fully validated platform was being used to accelerate programs.
- Continued Investment in Platform CapabilitiesManagement said it would continue building the platform and capabilities needed to grow and bring new products to customers, while continuing to look for investment opportunities that facilitate top-line growth. The company said it was at scale with a team capable of delivering its three-year objectives.
SDGR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 03, 2027 | 2026 (Q4) | -0.26- | 0.45 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | -0.67-0.50 | -0.45 | -11.11% (-0.05) | |
| Aug 05, 2026 | 2026 (Q2) | -0.410.08 | -0.59 | 113.56% (+0.67) | |
| May 05, 2026 | 2026 (Q1) | -0.62-0.81 | -0.82 | 1.22% (+0.01) | |
| Feb 25, 2026 | 2025 (Q4) | -0.180.45 | -0.55 | 181.82% (+1.00) | |
| Nov 05, 2025 | 2025 (Q3) | -0.72-0.45 | -0.52 | 13.46% (+0.07) | |
| Aug 06, 2025 | 2025 (Q2) | -0.77-0.59 | -0.74 | 20.27% (+0.15) | |
| May 07, 2025 | 2025 (Q1) | -0.73-0.82 | -0.76 | -7.89% (-0.06) | |
| Feb 26, 2025 | 2024 (Q4) | -0.42-0.55 | -0.32 | -71.88% (-0.23) | |
| Nov 12, 2024 | 2024 (Q3) | -0.63-0.52 | -0.86 | 39.53% (+0.34) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
