Schrodinger, Inc. (SDGR) · Nov 4, 2026 · Earnings
Beat — Revenue $64.5M vs ~$47.7M consensus; EPS $(0.50) vs ~$0.67 loss consensus
Schrödinger earnings sharply beat consensus, with drug discovery revenue surging and full-year ACV and revenue outlook raised.
Schrödinger is balancing two businesses: a software platform moving toward hosted, recurring deployments and a drug-discovery portfolio that produces milestone-driven revenue while supplying real-world feedback to the platform. Its prior 2026 plan already called for 10–15% ACV growth, a $218–228 million ACV target, and $65–75 million of drug-discovery revenue, so the strategic direction was known rather than a surprise.
The quarter materially cleared the financial bar. Revenue of $64.5 million was far above the published consensus near $47.7 million, while GAAP loss per share of $0.50 was narrower than the roughly $0.67 consensus loss. The biggest driver was drug discovery revenue, which rose to $24.2 million from $13.0 million; software revenue also grew to $38.2 million despite the ongoing transition toward hosted licensing. The filing says the company delivered 17% ACV growth and raised its full-year ACV and drug-discovery revenue outlook.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Total revenue (Income Statement) | $64.5M (+18.7%) | $54.3M | ~$47.7M |
| Software revenue (Income Statement) | $38.2M (+6.2%) | $35.9M | |
| Drug discovery revenue (Income Statement) | $24.2M (+86.0%) | $13.0M | |
| Gross profit (Income Statement) | $38.3M (+36.4%) | $28.0M | |
| Net loss (Income Statement) | $(37.7)M | $(32.8)M | |
| Diluted loss per share (Income Statement) | $(0.50) | $(0.45) | ~$(0.67) |
| Operating cash flow (Cash Flow statement) | $(96.5)M | $30.0M |
The quality of the beat is mixed but still clearly favorable. The recurring software indicator is moving in the right direction, and the drug-discovery contribution is much stronger than last year, but GAAP profitability remains distant. Nine-month operating cash flow swung to a $96.5 million outflow, and the quarter’s $11.4 million of other expense was driven primarily by changes in the market value of equity positions rather than core operations.
The raised outlook is the most important forward signal. This is more than a one-quarter revenue timing event: management increased its full-year ACV and drug-discovery expectations after already setting a growth-oriented 2026 plan. Still, the filing does not provide the new ranges in the supplied release, so the size of the upgrade cannot be measured precisely. The next named business catalyst is updated Phase 1 data for SGR-1505 at the American Society of Hematology meeting on December 12–15, 2026. 〔0〕
Bottom line: This was a genuine earnings beat with stronger underlying ACV momentum and a higher outlook, not merely a favorable accounting result. Cash usage and continuing losses remain constraints, but the filing advances Schrödinger’s software-plus-drug-discovery story meaningfully versus the pre-release baseline.
Updated SGR-1505 Phase 1 data at ASH, December 12–15
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