The mixed Q1 results (revenue beat but EPS miss) combined with maintained guidance may lead to volatility. Focus on ACV trajectory as a more reliable forward indicator than GAAP software revenue during the hosted transition. The Ajax acquisition and Bunsen launch are positive sentiment drivers but may not offset near-term software revenue declines. Watch Q2 ACV guidance of $19-23M (down from $23.3M in Q2 2025, excluding contribution) for signals on underlying demand.
Price Chart
Executive Summary
Schrödinger reported Q1 2026 total revenue of $58.6M (down 2% YoY but 23% above consensus), GAAP EPS of -$0.81 (vs consensus -$0.56, a miss), and maintained full-year ACV guidance of $218-228M. Software revenue declined 21% due to the planned hosted transition, but ACV grew 12%. Drug discovery revenue doubled to $22.9M. Positive catalysts include the Ajax Therapeutics sale for up to $2.3B (5.8% stake) and the upcoming Bunsen AI launch.
Key Financial Metrics
Key Facts
- Total revenue $58.6M, down 2% YoY; consensus $47.6M (beat)
- GAAP EPS -$0.81 vs consensus -$0.56 (miss of ~45%)
- ACV $28.4M, +12% YoY (guidance maintained: $218-228M FY2026)
- Software revenue $35.6M, -21% (shift to hosted licensing)
- Drug discovery revenue $22.9M, +124% (deferred revenue pull-forward)
- Net loss $60.0M vs $59.8M (slightly wider)
- Operating cash flow -$14.8M vs +$144M in Q1 2025
- Cash & equivalents $406M; equity investments $39.8M
- Ajax Therapeutics sale to Lilly for up to $2.3B (SDGR 5.8% stake)
- Bunsen agentic AI co-scientist planned for summer 2026 release
- Q2 2026 ACV guidance: $19-23M (vs $23.3M in Q2 2025, which had $5M contribution)
- Maintained 2026 outlook: ACV growth 10-15%, drug discovery $55-65M, opex less than 2025
Financial Impact
Revenue beat of ~$11M (23%) vs consensus but EPS miss of $0.25 per share; net loss roughly flat YoY; guidance unchanged.
Risk Factors
- GAAP software revenue likely to continue declining as hosted transition accelerates, masking ACV growth
- EPS miss versus consensus could pressure the stock despite revenue beat
- Dependence on drug discovery milestones for revenue variability
- Cash burn from operations (negative operating cash flow) could increase if drug discovery payments shift
- Equity investment valuations (Ajax, Structure) may introduce volatility in other income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001490978-26-000036 |
| Document: sdgr-20260505.htm | 0001490978-26-000036 |
| Document: 0001490978-26-000036-index-headers.html | 0001490978-26-000036 |
| Document: 0001490978-26-000036-index.html | 0001490978-26-000036 |
| Document: 0001490978-26-000036.txt | 0001490978-26-000036 |
| 8-K Data (Synthetic) | 0001490978-26-000036 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 29, 2026 17w ago | 8-K | $16.25 $29.23 | ▲ +79.88% | ▲ +77.06% | $24.50 (+50.77%) |
Jun 23, 2026 17w ago | 8-K | $15.33 $30.24 | ▲ +97.26% | ▲ +94.42% | $24.50 (+59.82%) |
May 20, 2026 22w ago | 8-K | $13.23 $17.40 | ▲ +31.52% | ▲ +27.22% | $24.50 (+85.19%) |
May 5, 2026 24w ago | 8-K | $12.98 $15.14 | ▲ +16.64% | ▲ +14.58% | $24.50 (+88.75%) |
Apr 16, 2026 27w ago | Insider Cluster | $12.06 $16.41 | ▼ −36.07% | ▼ −29.02% | $24.50 (−103.15%) |
Mar 4, 2026 33w ago | Insider Cluster | $13.12 $14.16 | ▲ +7.93% | ▼ −2.16% | $24.50 (+86.74%) |
Feb 25, 2026 34w ago | 8-K | $12.76 $13.30 | ▲ +4.23% | ▼ −3.94% | $24.50 (+92.01%) |
US Market Status
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