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Schrodinger

SDGR Q1 2026 Earnings

Reported May 5, 2026 at 4:06 PM ET · SEC Source

Q1 26 EPS

$-0.81

MISS 42.11%

Est. $-0.57

Q1 26 Revenue

$58.6M

BEAT +23.00%

Est. $47.6M

vs S&P Since Q1 26

+27.8%

BEATING MARKET

SDGR +27.8% vs S&P -0.1%

Market Reaction

Did SDGR Beat Earnings? Q1 2026 Results

Schrödinger delivered a mixed first quarter for fiscal 2026, posting a sharp earnings miss alongside a notable revenue beat that nonetheless failed to reassure analysts already scrutinizing the company's path to profitability. The computational drug … Read more Schrödinger delivered a mixed first quarter for fiscal 2026, posting a sharp earnings miss alongside a notable revenue beat that nonetheless failed to reassure analysts already scrutinizing the company's path to profitability. The computational drug discovery firm reported Q1 revenue of $58.59 million, topping the $47.63 million consensus by 23.00%, though total revenue slipped 1.6% year over year as a deliberate 21% reduction in software revenue, tied to the company's ongoing transition toward hosted licensing, offset a more than doubling of drug discovery revenue to $22.88 million. On the bottom line, however, GAAP EPS came in at -$0.81, missing the -$0.57 consensus by 42.11%, reflecting elevated losses that prompted analysts to raise their loss projections for the full year. Annual Contract Value grew 12% to $28.40 million, supporting management's decision to maintain full-year guidance with ACV targeted at $218 million to $228 million and drug discovery revenue of $55 million to $65 million, as the upcoming launch of Bunsen, an agentic AI co-scientist, anchors the company's longer-term growth thesis.

Key Takeaways

  • • ACV growth of 12% driven by usage scale-ups and new deployments
  • • Drug discovery revenue more than doubled due to accelerated recognition of deferred revenue from collaboration progress and discontinuation of one collaboration program
  • • Software revenue declined 21% reflecting planned accelerated transition to hosted software licensing
  • • Contribution revenue declined due to completion of predictive toxicology grant
  • • Operating expenses decreased 4% year-over-year

SDGR Forward Guidance & Outlook

For fiscal year 2026, Schrödinger maintained its previously issued guidance: ACV expected to range from $218 million to $228 million, representing 10-15% growth over 2025; drug discovery revenue expected to range from $55 million to $65 million; and operating expenses expected to be less than 2025. For Q2 2026, ACV is expected to range from $19 million to $23 million (exclusive of contribution ACV), compared to $23.3 million in Q2 2025, which included $5.0 million of contribution ACV.

24/7 Wall St

SDGR YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

SDGR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Our first quarter results show strong growth in both ACV and drug discovery revenue. ACV growth of 12 percent was driven by usage scale-ups and new deployments; we are also pleased with our progress transitioning customers to hosted licensing. The biopharmaceutical funding environment is improving, and the depth of customer engagement reflects the critical importance of our computational platform that integrates ground truth simulation with leading edge AI. We have a strong commitment to technology leadership and are excited about the release this summer of Bunsen, an agentic AI co-scientist designed to autonomously execute complex molecular discovery workflows and expand utilization to a broader user base.”

— Ramy Farid, Q1 2026 Earnings Press Release

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