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Schrodinger Q3 revenue beats expectations on milestone payment

By Reuters News


Overview

  • Computational molecular discovery platform's Q3 revenue rose 19% yr/yr, beating analyst expectations

  • Net loss widened to $37.7 mln from $32.8 mln last year

  • Drug discovery revenue rose, helped by milestone payment from Structure Therapeutics


Outlook

  • Schrodinger raises 2026 ACV guidance to $222 mln-$232 mln from $218 mln-$228 mln

  • Company lifts 2026 drug discovery revenue outlook to $75 mln-$85 mln from $65 mln-$75 mln

  • Operating expenses for 2026 expected to be less than in 2025


Result Drivers

  • MILESTONE PAYMENT - Drug discovery revenue increase was primarily due to a milestone payment from Structure Therapeutics

  • HOSTED SOFTWARE TRANSITION - Software gross margin fell 2% as company continued transition to hosted licenses

  • OPERATING EXPENSES - Operating expenses decreased 13% yr/yr, contributing to improved operating results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$64.49 mln

$47.26 mln (5 Analysts)

Q3 Net Loss

$37.71 mln

Q3 Gross Profit

$38.25 mln

Q3 Operating Expenses

$64.38 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Schrodinger Inc is $24.00, about 11.7% below its November 3 closing price of $27.18


Reuters Recommended Reads

  • Nov 3 - SOPHiA GENETICS Q3 revenue rises on US market strength

  • Nov 2 - Recursion Pharmaceuticals Q3 net loss narrows more than expected on lower costs

  • Nov 2 - Syndax Pharmaceuticals Q3 revenue rises 82% on cancer drug sales


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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