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SDGR · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Schrodinger, Inc. Common Stock (SDGR) stock moving?
Schrodinger reported Q3 2026 revenue of $64.5M, up 18.7% year over year and well above the $47.3M consensus, with adjusted EPS of $(0.50) against a $(0.70) estimate. The company also raised its full-year outlook and announced an expanded Novartis collaboration, and it received a milestone payment from Structure Therapeutics. TD Cowen reaffirmed its Buy rating and lifted its price target from $31 to $36 on Nov 5. The stock closed at $28.52 on Nov 4, the day of the report, and has since climbed to $32.41 on Nov 10, with a Nov 9 jump to $33.39 on 2.7M shares that no news item in this set explains. Shares are up about 43% from $22.60 on Oct 22, and the $36 target sits roughly 11% above the latest close. Risks include continued losses (adjusted EPS remains negative), reliance on lumpy collaboration and milestone payments, and a stock that has already re-rated sharply, so further gains depend on the outlook raise holding up.
News behind the analysis
- Schrödinger, Inc. Reports Third Quarter 2026 Financial ResultsReported Q3 2026 revenue of $64.5M and raised its full-year outlook. The results were furnished on Form 8-K as Exhibit 99.1.
- Schrodinger Q3 Adj. EPS $(0.50) Beats $(0.70) Estimate, Sales $64.491M Beat $47.258M EstimateAdjusted EPS of $(0.50) beat the $(0.70) estimate, and sales of $64.491M beat the $47.258M estimate.
- Schrödinger Reports Q3 2026 Financial Results and Strategic UpdatesQ3 2026 revenue rose 18.7% year over year to $64.49M, and the company announced an expanded collaboration with Novartis.
- Schrodinger Q3 2026 Earnings Call TranscriptTranscript of the company's Q3 2026 earnings call, held on Wednesday, Nov 4.
- Schrödinger Says It Received Milestone Payment From Structure Therapeutics Tied To Phase 1/2a Study Of Obesity Candidate ACCG-2671The company received a milestone payment from Structure Therapeutics linked to the Phase 1/2a study of obesity candidate ACCG-2671.
- TD Cowen Maintains Buy Rating and Raises Price Target for SchrödingerTD Cowen kept its Buy rating and raised its price target from $31 to $36 after the company's recent updates.
- TD Cowen Maintains Buy on Schrodinger, Raises Price Target to $36TD Cowen reaffirmed its Buy rating on Schrodinger and lifted its price target to $36.
- Schrödinger's Bunsen Platform Named Drug Discovery Solution of the YearThe Bunsen platform was named 'Drug Discovery Solution of the Year' in the 2026 BioTech Breakthrough Awards.
- Schrödinger to Present at UBS Global Healthcare ConferenceManagement will take part in a fireside chat at the upcoming UBS Global Healthcare Conference.
About Schrodinger, Inc. Common Stock
Schrödinger is a New York-based company that makes physics-based computer simulation software used by pharmaceutical, biotech and materials-science companies to design new molecules. It's unusual because it also uses its own platform to discover drugs, both with partners and in its own pipeline. It earns money from both software and drug-discovery deals.
How it makes money
Most of its revenue comes from software licenses, both on-premise and hosted (cloud). Hosted software is a growing share, reaching about 45% of software revenue in Q3 2026. The rest comes from drug-discovery collaborations: upfront fees, milestone payments and royalties from partners such as Structure Therapeutics. In Q3 2026 total revenue was roughly $65M: about $38M from software and about $24M from drug discovery. For full-year 2026 the company guided to roughly $222–232M in annual contract value and about $75–85M in drug-discovery revenue. The company is still losing money and had about $373M in cash and marketable securities.
What usually moves SDGR
- Software contract growth (ACV) and the shift to hosted licensing
- Milestone payments from drug-discovery partners
- Clinical trial results for partnered and in-house drug candidates
- Pharma and biotech R&D budgets
- How investors feel about AI in drug discovery